Takulah Co. Ltd has traditionally allocated its overhead based on machine hours but had collected this information to change to activity-based costing: ESTIMATED ACTIVITY ACTIVITY CENTER PRODUCT 1 PRODUCT 2 ESTIMATED COST Machine setups 15 45 $10,800 Assembly Parts 3000 3000 144600 Packaging pieces 500 400 55350 Machine hour per unit 4 3   Production volume 750 1500     Required: i) How much overhead would be allocated to each unit under the traditional allocation method?  ii) How much overhead would be allocated to each unit under activity-based costing?  iii) Would you recommend a change to ABC costing for this company? Justify your answer

Q: Slow Steel Company is debating the use of direct labor cost or direct labor hours as the cost…

A: Applied Overhead is part of a company's cost of goods manufactured for the current period. It is an…

Q: A company has traditionally allocated its overhead based on machine hours but had collected this…

A: Activity-based costing is used to distribute the overhead. in this overheads are allocated on the…

Q: The Randolph Company uses activity – based costing and provides this information: Manufacturing…

A: Activity based costing assigns cost to each and every activity on the basis of the cost driver.

Q: Kulka Corporation manufactures two products: Product F82D and Product T05P. The company uses a…

A: direct labour hours are related to manufacturing the product and hence considered in manufacturing…

Q: Simmons, Incorporated's traditional costing system uses a plantwide predetermined overhead rate…

A: The question is based on the concept of Cost Accounting.

Q: Assume the company decides to use traditional system in which the allocation base of ALL costs is…

A: solution Concept Under traditional method of costing the overhead is allocated using a single…

Q: Blue Ridge Marketing Inc. manufactures two products, A and B. Presently, the company uses a single…

A: Painting Department Overhead per Direct labor hour               Painting Department overhead/…

Q: ntps Tidwell Industries has the following overhead costs and cost drivers. Direct labor hours are…

A: Activity based costing: It is a method for allocating overhead cost to products based on consumption…

Q: Senff Corporation uses the following activity rates from its activity-based costing to assign…

A: Activity-Based Costing: Activity-based costing is a costing technique that distinguishes exercises…

Q: Boswell Company manufactures two products, Regular and Supreme. Boswell's overhead costs consist of…

A: First, compute the total estimated overhead as shown below: Total estimated overhead = $1,200,000 +…

Q: X Company uses activity based costing and gives you the following data regarding cost pools and…

A: The amount of total estimated overhead is the sum of all estimated overhead expenses.

Q: MFCB Ltd uses an activity-based costing system for its overhead costs. The company has provided the…

A: Activity rate = Total cost of the activity / total activity  Cleaning is based on hours. Job support…

Q: Blue Ridge Marketing Inc. manufactures two products, A and B. Presently, the company uses a single…

A: The factory overhead allocated rate is used to allocate the overhead expenses.

Q: Overhead applied to Supreme using activity-based costing is $3638000. $2040000. $1462000. $3060000.

A: Machining overhead is allocated based on the Machine hours. Assembling overhead is allocated based…

Q: Blue Ridge Marketing Inc. manufactures two products, A and B. Presently, the company uses a single…

A: Overhead Cost: Overhead cost is the expense incurred in the operations of a business. This expense…

Q: a) How much overhead would be assigned to each unit under the traditional allocation method?  b) How…

A: NOTE:  As per our guidelines, we are supposed to answer 3 sub-parts only. Please repost the…

Q: $137,314 in overhead. The company has identified the following information about its overhead…

A: Solution Concept Traditional costing uses a single recovery rate for the overhead allocation ABC…

Q: abor hours 10000 15000 Machine hours 10000 30000 Number of parts 90000 160000 Overhead applied to…

A: Predetermined overhead Rate =Total overhead cost/ Total Direct labor hours…

Q: Blue Ridge Marketing Inc. manufactures two products, A and B. Presently, the company uses a single…

A: Departmental overhead rate = Estimated overhead costs/ Estimated labour hours

Q: Blue Ridge Marketing Inc. manufactures two products, A and B. Presently, the company uses a single…

A: Overhead rate is calculated to determine the per cost driver rate that can be used to apply to the…

Q: Blue Ridge Marketing Inc. manufactures two products, A and B. Preseitly, the compaliy uses a single…

A: Lets understand the basics. There are two types of rates are followed for allocating fixed overhead…

Q: Blue Ridge Marketing Inc, manufactures two products, A and 8. Presently, the company uses a single…

A: Factory overhead is the cost of producing goods and services or manufacturing in factory it includes…

Q: Blue Ridge Marketing Inc. manufactures two products, A and B. Presently, the company uses a single…

A: The predetermined overhead rate is calculated as estimated overhead cost divided by estimated base…

Q: Blue Ridge Marketing Inc. manufactures two products, A and B. Presently, the company uses a single…

A: Calculation of Activity rate Activity rate = Factory overhead cost/ Total direct labor hours…

Q: Ravelo Corporation has provided the following data from its activity-based costing system: Estimated…

A: Overhead means the cost incurred indirect in factory for the production of goods. Manufacturing…

Q: Corporation has provided the following data from its activity-based costing system: Activity Cost…

A: The overhead cost is allocated on the basis of pre determined activity rate.

Q: Blue Ridge Marketing Inc. manufactures two products, A and B. Presently, the company uses a single…

A: The corporation face difficulty in distributing the indirect costs incurred in operations, so they…

Q: A company has traditionally allocated its overhead based on machine hours but had collected this…

A: Total machine hours for Product 1 = 4*750 = 3,000 hours Total machine hours for Product 2 = 3*1500 =…

Q: Angel Corporation uses activity-based costing to determine product costs for external financial…

A: First of all we will have to divide each activity estimated overhead by total activity pool.…

Q: Boswell Company manufactures two products, Regular and Supreme. Boswell's overhead costs consist of…

A: Predetermined Overhead Rate: Predetermined overhead rate is a measure used to allocate the estimated…

Q: Blue Ridge Marketing Inc. manufactures two products, A and B. Presently, the company uses a single…

A: Departmental overhead rate = Estimated overhead costs/ Estimated labour hours

Q: Blue Ridge Marketing Inc. manufactures two products, A and B. Presently, the company uses a single…

A: Solution  under the departmental allocation method allocation rate for each department is calculated…

Q: 4.90 P63.70   Direct labor per unit P20.80 P62.40   Direct labor-hours per unit 0.80 2.40…

A: GRACE Manufacturing Corporation  traditional costing   For scheming the cost exploitation the normal…

Q: Tidwell Industries has the following overhead costs and cost drivers. Direct labor hours are…

A: Given, Estimated direct labor hours = 100,000 Traditional overhead application rate = Total…

Q: Blue Ridge Marketing Inc. manufactures two products, A and B. Presently, the company uses a single…

A: Multiple production department factory overhead rate:   This allocation method identifies different…

Q: Gould Corporation uses the following activity rates from its activity-based costing to assign…

A: Overhead cost assigned = Actual quantity used*Activity rate

Q: Allure Company manufactures and distributes two products, M and XY. Overhead costs are currently…

A: Overheads are considered as fixed and common expenses that should be allocated to the products based…

Q: Reliability Co. makes two products. Regular and Supreme. Overhead costs of machining is $2.000.000…

A: Activity-based costing is a method of assigning indirect costs to products and services by…

Q: Blue Ridge Marketing Inc. manufactures two products, A and B. Presently, the company uses a single…

A: Given information is: Estimated overhead in Painting department = $243300 Estimated direct labour…

Q: MFCB Ltd uses an activity-based costing system for its overhead costs. The company has provided the…

A: Pre-determined overhead rate = Total manufacturing overhead cost / Total units of the allocation…

Q: company wants to know how to allocate manufacturing overhead to the products. The Super Soak…

A:

Q: Takulah Co. Ltd has traditionally allocated its overhead based on machine hours but had collected…

A: i) Under traditional allocation method, the overhead are allocated to the products on the basis of…

Q: Blue Ridge Marketing Inc. manufactures two products, A and B. Presently, the company uses a single…

A: Total Overhead costs = $323,900   Total Direct labor hours = 21,700 hours   Plant wide Overhead Rate…

Q: Blue Ridge Marketing Inc. manufactures two products, A and B. Presently, the company uses a single…

A: The question is based on the concepts of Cost Accounting.

Q: MFCB Ltd uses an activity-based costing system for its overhead costs. The company has provided the…

A: Calculate cost per activity: Activity Cost Pool Total Cost (RM) [a] Total Activity [b] Cost per…

Q: Producing Departments / Main Department Servicing Departments Total JK V Jimin Jin Suga P80,000.00|…

A: Direct Method:-It is the simplest method of cost allocation of the Service department to its other…