X Company uses activity-based costing for its product Supreme and Exel. The total estimated annual overhead cost for set up was RO 650,000 and the expected activity was 2500 set ups for the period. If product Exel requires 1500 set ups, the amount of overheads allocated to product Exel for set up cost would be: a. RO 380,000 b. RO 360,000 c. RO 390,000 d. RO 280,000

Q: Kunkel Company makes two products and uses a conventional costing system in which a single plantwide…

A: UNIT PRODUCT COST is the cost of one unit of a product. It includes the direct and indirect costs.…

Q: A company makes two products 1 and 2. The finishing activity pool has estimated manufacuring costs…

A: In the traditional cost method, the manufacturing overhead cost is distributed on the basis of…

Q: Porthos Co. has identified an activity cost pool to which it has allocated estimated ovehead of…

A: We first need to understand the meaning of cost driver. A cost driver is a unit that derives the…

Q: Candice Company uses activity-based costing to determine the unit product costs for external…

A:

Q: R Company uses activity-based costing for its product Roma and Emma. The total estimated annual…

A: Activity rate = RO 200,000 / 2500 set ups Activity rate = RO 80 per set up

Q: Y Company uses activity-based costing for its product Delux and Melux. The total estimated annual…

A: Activity rate = RO 530,000 / 5000 set ups Activity rate = RO 106 per set up

Q: Buena Company uses activity-based costing to determine the unit product costs for external reports.…

A: Calculation of overhead cost per unit of BarG &Bar S:: Particulars.     BarG.        Bar S..…

Q: A company makes two products 1 and 2. The finishing activity pool has estimated manufacuring costs…

A: Activity rate = Estimated cost / Estimated activity

Q: Hollywood Co. computed an overhead rate for machining costs ($1,500,000) of $15 per machine hour.…

A: The overhead is applied to the production on the basis of predetermined overhead rate.

Q: For its overhead costs, the wholesale distributor Janz Company uses activity-based costing. In terms…

A: Under Activity based costing, activity rate is computed by dividing the activity cost by the…

Q: A company makes two products 1 and 2. The finishing activity pool has estimated manufacuring costs…

A: Manufacturing cost for finishing activity per cost driver = 110,205/(326+493)               = 134.56

Q: Porthos Co. has identified an activity cost pool to which it has allocated estimated ovehead of…

A:

Q: A company makes two products 1 and 2. The finishing activity pool has estimated manufacuring costs…

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

Q: Abel Company uses activity-based costing. The company has two products: A and B. The annual…

A: Process costing is used where the product is generated through multiple processes. It is mainly used…

Q: Valencia Company manufactures two products. Product A has 800 units produced, require 200 material…

A: Cost allocated to A = P2,000,000 x 200/1000 = P400,000 Coat allocated to B = P2,000,000 x 800/1000 =…

Q: Flynn Industries has three activity cost pools and two products. It estimates production 2,000 units…

A: Under activity based overhead rate costing, each activity is assigned separate overhead cost…

Q: Deoro Company has identified the following overhead activities, costs, and activity drivers for the…

A: Overhead rate = Total expected costs /  Total direct labor hours = ($480000 + 360000 + 840000 +…

Q: Company X has two products: A and B. Annual production and sales are 700 units of Product A and 800…

A: Estimated  total labor hours = 700units × 0.2 hours + 800 units × 0.6 hours =620 hours

Q: A company makes two products 1 and 2. The finishing activity pool has estimated manufacuring costs…

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

Q: P Company uses activity-based costing for its product Even and Odd. The total estimated annual…

A: Formula: Overheads allocated to product Even for set up cost = ( Total estimated annual overhead /…

Q: Luther Manufacturing uses an activity-based cost system. The company produces Model 0 and Model J.…

A: The activity rate is calculated as estimated overhead cost for the activity divided by estimated…

Q: Arthur Company has two products: S and D. The company uses activity-based costing and has prepared…

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

Q: Paradis Ltd adopts a standard costing system. The standard cost card for their product is as…

A: 1.  The following Journal Entry will be recorded to Record Actual Manufacturing Overhead incurred.…

Q: A company makes two products 1 and 2. The finishing activity pool has estimated manufacuring costs…

A: The standard amount of factory overhead cost assigned to each unit of production is known as the…

Q: Taylor Company has two products: A and B. The anual production and sales level of Product A is 9,094…

A: A flexible budget is prepared on the basis of the budgeted rate and on the basis of different…

Q: Annika Company uses activity-based costing. The company has two products: A and B. The annual…

A: Cost per activity = Total cost / Total activity

Q: Alexander Inc. uses activity-based costing. The company produces two products: Snaps and Pops. The…

A: Activity rate = Estimated cost/Total activity Overhead applied = Activity used*Activity rate

Q: achor Company manufactures two products. Product A has 800 units produced, require 200 material…

A: Solution: Material handling cost allocated to A = Total cost * Material moves of A / total material…

Q: Greenwood Company manufactures two products-15,000 units of Product Y and 1,000 uses a plantwide…

A: Total Direct labor hours=Product Y+Product Z=8,700+1,300=10,000

Q: Kunkel Company makes two products and uses a conventional costing system in which a single plantwide…

A: Manufacturing overhead cost is applied to product to convert raw materials to finished product.

Q: Edney Company employs a standard cost system for product costing. The per-unit standard cost of its…

A: A variance is favorable if actual expenditure is less than the budgeted and unfavorable if actual is…

Q: Thomsen Computer Company produces three products: Earth, Wind, and Fire. Earth requires 80 machine…

A: The overhead cost is applied to the production using the predetermined overhead rate.

Q: Paradis Ltd adopts a standard costing system. The standard cost card for their product is as…

A: SOLUTION- COST OF GOOD SOLD- IT REFERS TO THE DIRECT COSTS OF PRODUCING THE GOODS SOLD BY A COMPANY.…

Q: A company makes two products 1 and 2. The finishing activity pool has estimated manufacuring costs…

A: Total Manufacturing Overhead Rate = Total Overhead Cost / Total Direct Labor Hours

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

A: Formula: Total overhead per unit allocated to Product M =  ( Total overheads / Number of units )

Q: 26) R Company uses activity-based costing for its product Roma and Emma. The total estimated annual…

A: Activity rate = RO 200,000 / 2500 set ups Activity rate = RO 80 per set up

Q: FIGHTING Manufacturing Corporation has a traditional costing system in which it applies…

A: In this question, we have been asked to find the manufacturing overhead by using two methods…

Q: Company uses activity-based costing for its product Royale and Elegance. The total estimated annual…

A: Activity based costing is the method of allocation of overhead to the product or services. Under…

Q: A company which uses activity-based costing has two products: A and B. The annual production and…

A: The ABC approach is used to determine which activities require cost collection and control. Its goal…

Q: Olmo, Inc., manufactures and sells two products: Product KO and Product H9. The annual production…

A: Activity rate = Estimated overhead cost/Total expected activity Labor related activity rate =…

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

A: Total overhead per unit is calculated by dividing the total overhead by the number of units.

Q: Process costing can be performed with estimated cost and production data and actual cost and…

A: If the manufacturing overhead cost applied to work in process is less than the manufacturing…

Q: Paradis Ltd adopts a standard costing system. The standard cost card for their product is as…

A: Hello. Since your question has multiple parts, we will solve the first question for you. If you want…

Q: PAX Corporation uses Part BLX in the assembly of a major product line .  The cost to produce one…

A: Opportunity cost is the forgone benefit, if the corporation shifts from one alternative to another…

Q: Edney Company employs a standard cost system for product costing. The per-unit standard cost of its…

A: Hello. Since your question has multiple sub-parts, we will solve the first three sub-parts for you.…

Q: PAX Corporation uses Part BLX in the assembly of a major product line .  The cost to produce one…

A: Here in this question, we are required to answer the amount of opportunity cost. Opportunity cost…

Variance Analysis

In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance. 

Standard Costing

The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.