The Matilda produces two products, Alpha and Beta, and uses the conventional method of allocating overhead based on direct labor cost. The management decided to adopt the ABC System of costing. The number of setups and the number of design hours were selected as the activity drivers for the two new cost pools, and direct labor cost will continue as the base for allocating the remaining overhead. Information below is available. For the current period, the eatery had the following activities: 1. Using the ABC System, The total production cost for Alpha is 2. Using the ABC System, The Overhead applied to Job Custom is 3. Using conventional method, the overhead assigned to Job Beta is

The Matilda produces two products, Alpha and Beta, and uses the conventional method of allocating overhead based on direct labor cost. The management decided to adopt the ABC System of costing. The number of setups and the number of design hours were selected as the activity drivers for the two new cost pools, and direct labor cost will continue as the base for allocating the remaining overhead. Information below is available. For the current period, the eatery had the following activities: 1. Using the ABC System, The total production cost for Alpha is 2. Using the ABC System, The Overhead applied to Job Custom is 3. Using conventional method, the overhead assigned to Job Beta is

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 8MC: A company calculated the predetermined overhead based on an estimated overhead of $70.000, and the...

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Overheads cost analysisRProduction 4 400 000Materials handling 1 000 000Set-up 1 050 000Quality control 1 900 000Materials procurement 400 000Cost driver analysisCost drivers Product A Product B TotalDirect labour hours 320 000 180 000 500 000Number of set-ups 420 280 700Materials movements 700 300 1 000Number of orders 1 300 700 2 000Number of inspections 1 140 760 1 900 Annual outputProduct A 200 000 unitsProduct B 100 000 units Use the information provided below to calculate the overhead cost per product using the followingcosting systems: Traditional Absorption Costing, using direct labour hours as the basis for allocation.…
Choose the correct letter of answer materials used, P500,000; labor cost, 60% of raw materials used; overhead, 30% of raw materials used; administrative and selling expenses, 40% of labor cost. The total period cost is equivalent to: a. P 120,000b. P890,000c. P800,000d. P590,000
Eddie Company had the following data available:Direct materials purchased on account P74,000Direct materials requisitioned P41,000Direct-labor cost incurred P65,000Factory overhead incurred P77,000Factory overhead applied P85,000Work in process is increased by _____. a) P334,250 b) P191,000 c) P179,000 d) P139,000
Product Volume Material costper unit (R)Direct LabourCost per unit(R)Machine Timeper unit(Hours)Rubber Ball 1 000 5.00 5.50 0.35Leather Ball 700 20.00 2.00 1.00Total production Overheads are as follows:Machine department: R50 000 (machine hours is the cost driver)Set‐up costs: R5 000Ordering Costs‐materials: R2 000Handling materials: R8 000An analysis of production overhead activities for the period for the volume ofproducts manufactured revealed the following:Product # set‐ups # material orders # times material were handledRubber Ball 1 1 2Leather Ball 2 1 3Calculate the total budgeted product cost per unit for the Rubber Ball usingActivity Based Costing (ABC). Round all answers to two decimal places.
Direct materials issued to production $170,000Indirect materials issued to production $45,000Other manufacturing overhead $255,000Overhead allocated $240,000Direct labour costs $80,000 Is the manufacturing overhead under- or over-applied? By how much?
Raw materials purchased = 197,000 Issued Direct Material = 187,000Indirect Material = 19,000 Direct Labor = 121,000Indirect Labor = 29,000 OH Rate = 150% Actual OH = 183,000 What was the amount of applied overhead (Over or Under)
Manufacturing cost data for Morton Company are presented below. Case A Case B Case C Direct materials used (a) $75,400 $130,000 Direct labor $ 57,000 76,000 (g) Manufacturing overhead 46,500 81,600 102,000 Total manufacturing costs 195,650 (d) 283,700 Work-in-process, 1/1/16 (b) 16,500 (h) Total cost of work-in-process 221,500 (e) 327,000 Work-in-process, 12/31/16 (c) (9,000) 80,000 Cost of goods manufactured 180,275 (f) (i) Instructions Indicate the missing amount for each letter (a) through (i).
ssume the following information: Milling Department Materials Conversion Total Cost of beginning work in process inventory $ 10,000 $ 15,000 $ 25,000 Costs added during the period 291,600 394,500 686,100 Total cost $ 301,600 $ 409,500 $ 711,100 Assume the equivalent units of production for materials and conversion, when using the weighted-average method, are 5,200 units and 5,000 units, respectively. If the equivalent units in ending work in process inventory for materials and conversion are 400 units and 200 units, respectively, then what is the total cost of ending work in process for the Milling Department?
Please check my answer: - process accounting - ch6-ex51 Unit Cost and Cost Assignment, Nonuniform Inputs Loran Inc. had the following equivalent units schedule and cost for its fabrication department during September: Materials Conversion Units completed 180,000 180,000 Add: Units in ending WIP x Fraction complete 79,000 51,350 (79,000 x 65%) Equivalent units of output 259,000 231,350 Costs: Work in process, September 1: Materials $147,000 Conversion costs 7,875 Total $154,875 Current costs: Materials $1,068,000 Conversion costs 289,055 Total $1,357,055 Required: 1. Calculate the unit cost for materials, for conversion, and in total for the fabrication department for September. If required, round your answers to the nearest cent. Unit materials cost $4.69 Unit conversion cost $1.28 Total unit cost $5.97 2. Calculate the cost of units transferred out…
A schedule of cost of goods manufactured shows:a. Materials used, P600,000b. Direct labor, 1,600,000c. Overhead costs, P 1,280,000d. Work in process, ending inventory, P280,000Compute for (1) the rate of factory overhead to direct labor cost, and (2) the direct materialsincluded in the work in process inventory, assuming that the direct labor in the work in processis P100,000. a. (1) 80% ; (2) P80,000b. (1) 125% ; (2) P60,000c. (1) 80% ; (2) P100,000d. (1) 125% ; (2) P100,000
Data Allocation base Machine-hours Estimated manufacturing overhead cost $300,000 Estimated total amount of the allocation base 75,000 machine-hours Actual manufacturing overhead cost $290,000 Actual total amount of the allocation base 68,000 machine-hours Enter a formula into each of the cells marked with a ? below Computation of the predetermined overhead rate Estimated manufacturing overhead cost ? Estimated total amount of the allocation base ? machine-hours Predetermined overhead rate ? per machine-hour Computation of underapplied or overapplied manufacturing overhead Actual manufacturing overhead cost ? Manufacturing overhead cost applied to Work in Process during the year: Predetermined overhead rate ? per machine-hour Actual total amount of the allocation base ? machine-hours Manufacturing overhead applied ? Underapplied (overapplied) manufacturing overhead ?
All costs incidental to materials procurement and handling until they are issued are charged tothe materials account by Cruz Mfg. Co. at a rate predetermined for each of the departmentsinvolved.For 19C, the estimated departmental costs are given:Purchasing department P175,000Receiving and Inspection Dept. 124,500Materials department 83,000Accounting department (20% isestimated to be related toprocessing of payments formaterials.295,000Purchases for 19C were estimated to amount to P5, 000,000 for more or less 8,300,000units to be ordered 50 times.Actual purchases for 19C amounted to P5, 600,000 for total of 8,000,000 units in 52orders. Costs incurred by the four given departments were as follows:Purchasing department P180,000Receiving and inspectiondepartment128,000Materials department 78,000Accounting department (20% isestimated to be related toprocessing of payments formaterials.290,000Required:a. Compute for the predetermined departmental overhead rates.b. How much is the applied…