11 Snavely, Inc, manufactures and sels two products Product E and Product AZ Data concerming the expected production of each product and the expected total drect labor hours DU requed to produce thatoutput appear belowTotalDirectDirectExpectedProductionLabor HoursPer UnitLaborHoursProduct E1Product A76006.03,6004003.01,200Total direct labor-hours4,800The direct labor rate is $2970 per DLH The direct materials cost per unit for each product is given belowDirectMaterialsCost per Unit$221.00Product E1Product A7$290.00The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activityEstinatedExpected ActivityActivityOverheadActivity Cost PoolsLabor-relatedTotal4,8001,100HeasuresCostProduct E1 Product A7$ 127,50060,110940, 10DLHS3,6001,200Machine setupssetups700400Order size4,0003,1007,100$1,127,770The total overhead applied to Product E1 under activity-based costing is closest to (Round your intermediete celculetions to 2 decimel pleces)

Overhead is an expense that can not be attributed to any product or service particularly but used to…

Snavely Inc, manufactures and sets two products Product t and Product AZ Data concemng the expected producton of each product and the expected tl deect bo houn DU d produce that output appear below Total Direct Direct Expected Production Labor ours Per Unit Labor Hours 3,600 1,200 Product E1 6.0 Product A7 3.0 Total direct labor-hours 4,800 The direct labor rate is $29.70 per DLH The drect materials cost per unit for each product is given below Direct Materials Cost per Unit $221.00 $2.00 Product E1 Product A7 The company has an activity based costing system wth the following activity cost poos, activty measures and expected activity: Expected Activity Estinated Overhead Cost Activity Activity Cost Poels Labor-related Hachine setups Product E1 Product A 3,00 Neasures Total $ 127,s0 ,110 940,160 DL 1,200 4,00 setups 700 400 1,100 Order sie 4,000 3,100 7,100 51,127.7 The total overhead applied to Product ETunder activityybased costings dosest to Round your intermediete celculations to 2 decimal places)

Snavely Inc, manufactures and sets two products Product t and Product AZ Data concemng the expected producton of each product and the expected tl deect bo houn DU d produce that output appear below Total Direct Direct Expected Production Labor ours Per Unit Labor Hours 3,600 1,200 Product E1 6.0 Product A7 3.0 Total direct labor-hours 4,800 The direct labor rate is $29.70 per DLH The drect materials cost per unit for each product is given below Direct Materials Cost per Unit $221.00 $2.00 Product E1 Product A7 The company has an activity based costing system wth the following activity cost poos, activty measures and expected activity: Expected Activity Estinated Overhead Cost Activity Activity Cost Poels Labor-related Hachine setups Product E1 Product A 3,00 Neasures Total $ 127,s0 ,110 940,160 DL 1,200 4,00 setups 700 400 1,100 Order sie 4,000 3,100 7,100 51,127.7 The total overhead applied to Product ETunder activityybased costings dosest to Round your intermediete celculations to 2 decimal places)

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter4: Activity-based Costing

Section: Chapter Questions

Problem 30P: Primera Company produces two products and uses a predetermined overhead rate to apply overhead....

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The following product costs are available for Kellee Company on the production of eyeglass frames: direct materials, $32,125; direct labor, $23.50; manufacturing overhead, applied at 225% of direct labor cost; selling expenses, $22,225; and administrative expenses, $31,125. The direct labor hours worked for the month are 3,200 hours. A. What are the prime costs? B. What are the conversion costs? C. What is the total product cost? D. What is the total period cost? E. If 6.425 equivalent units are produced, what is the equivalent material cost per unit? F. What is the equivalent conversion cost per unit?
Patterson Company produces wafers for integrated circuits. Data for the most recent year are provided: aCalculated using number of dies as the single unit-level driver. bCalculated by multiplying the consumption ratio of each product by the cost of each activity. Required: 1. Using the five most expensive activities, calculate the overhead cost assigned to each product. Assume that the costs of the other activities are assigned in proportion to the cost of the five activities. 2. Calculate the error relative to the fully specified ABC product cost and comment on the outcome. 3. What if activities 1, 2, 5, and 8 each had a cost of 650,000 and the remaining activities had a cost of 50,000? Calculate the cost assigned to Wafer A by a fully specified ABC system and then by an approximately relevant ABC approach. Comment on the implications for the approximately relevant approach.
Wrappers Tape makes two products: Simple and Removable. It estimates it will produce 369,991 units of Simple and 146,100 of Removable, and the overhead for each of its cost pools is as follows: It has also estimated the activities for each cost driver as follows: Â How much is the overhead allocated to each unit of Simple and Removable?
Overhead costs are assigned to each product based on __________________. A. the proportion of that products use of the cost driver B. a predetermined overhead rate for a single cost driver C. price of the product D. machine hours per product
Medical Tape makes two products: Generic and Label. It estimates it will produce 423,694 units of Generic and 652,200 of Label, and the overhead for each of its cost pools is as follows: It has also estimated the activities for each cost driver as follows: How much is the overhead allocated to each unit of Generic and Label?
The following data appeared in the accounting records of Craig Manufacturing Inc., which uses the weighted average cost method: Case 1All materials are added at the beginning of the process, and labor and factory overhead are added evenly throughout the process. Case 2One-half of the materials are added at the start of the manufacturing process, and the balance of the materials is added when the units are one-half completed. Labor and factory overhead are applied evenly during the process. Make the following computations for each case: a. Unit cost of materials, labor, and factory overhead for the month b. Cost of the units finished and transferred during the month c. Cost of the units in process at the end of the month
Cassien Inc. manufactures products that pass through two or more processes. During June, equivalent units were computed using the weighted average method: Required: 1. Calculate the unit cost for June using the weighted average method. 2. Using the weighted average method, determine the cost of EWIP and the cost of the goods transferred out. 3. CONCEPTUAL CONNECTION Cassien had just finished implementing a series of measures designed to reduce the unit cost to 2.00 and was assured that this had been achieved and should be realized for Junes production. Yet, upon seeing the unit cost for June, the president of the company was disappointed. Can you explain why the full effect of the cost reductions may not show up in June? What can you suggest to overcome this problem?
The following product costs are available for Stellis Company on the production of erasers: direct materials, $22,000; direct labor, $35,000; manufacturing overhead, $17,500; selling expenses, $17,600; and administrative expenses; $13,400. What are the prime costs? What are the conversion costs? What is the total product cost? What is the total period cost? If 13,750 equivalent units are produced, what is the equivalent material cost per unit? If 17,500 equivalent units are produced, what is the equivalent conversion cost per unit?
Adam Inc.s records for May include the following information: A. What are Adams standard labor hours for the units made? B. What is Adams total standard labor cost for the units made?
Rocks Industries has two products. They manufactured 12,539 units of product A and 8.254 units of product B. The data are: Â What is the activity rate for each cost pool?
Rex Industries has two products. They manufactured 12,539 units of product A and 8.254 units of product B. The data are: What is the activity rate for each cost pool?
K-Briggs Company uses the FIFO method to account for the costs of production. For Crushing, the first processing department, the following equivalent units schedule has been prepared: The cost per equivalent unit for the period was as follows: The cost of beginning work in process was direct materials, 40,000; conversion costs, 30,000. Required: 1. Determine the cost of ending work in process and the cost of goods transferred out. 2. Prepare a physical flow schedule.