XYZ Electronics manufactures two large-screen smart television models: the Elite which sells for OMR 160 and a new model, the Superior, which sells for OMR 130. Annual production is 2000 units for the Elite and 8000 units for the Superior. The company's managers identified five activity cost pools and related cost drivers and accumulated overhead by cost pool as follows. Activity Cost Driver Estimated Overhead Cost Expected Use of Cost Drivers Expected Use of Cost Driver Per Television Elite Superior 2 Material handling Machine setups Quality inspections Quality control |Number of requisitions 135,000 OMR 127,500 OMR Number of inspections 127,000 OMR Number of inspections 189,500 OMR Supervising production Number of supervisors 120,000 OMR 3 1 Number of setups 2 10 6 18 12 6 19000 9,000 10,000 Requirements: 1. Prepare a schedule showing the computations of the activity-based overhead rates per cost driver. 2. Prepare a schedule assigning each activity's overhead cost to the two products.
XYZ Electronics manufactures two large-screen smart television models: the Elite which sells for OMR 160 and a new model, the Superior, which sells for OMR 130. Annual production is 2000 units for the Elite and 8000 units for the Superior. The company's managers identified five activity cost pools and related cost drivers and accumulated overhead by cost pool as follows. Activity Cost Driver Estimated Overhead Cost Expected Use of Cost Drivers Expected Use of Cost Driver Per Television Elite Superior 2 Material handling Machine setups Quality inspections Quality control |Number of requisitions 135,000 OMR 127,500 OMR Number of inspections 127,000 OMR Number of inspections 189,500 OMR Supervising production Number of supervisors 120,000 OMR 3 1 Number of setups 2 10 6 18 12 6 19000 9,000 10,000 Requirements: 1. Prepare a schedule showing the computations of the activity-based overhead rates per cost driver. 2. Prepare a schedule assigning each activity's overhead cost to the two products.
Chapter6: Activity-based, Variable, And Absorption Costing
Section: Chapter Questions
Problem 13EB: Stacks manufactures two different levels of hockey sticks: the Standard and the Slap Shot. The total...
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