Homework Help is Here – Start Your Trial Now!
Business
Accounting
Zarson records the cost of unused capacity as a separate line item and not as a product cost. The following is the budgeted information for Zarson: Zarson's Netballs Budgeted Costs and Activities For the Year Ended December 31, 2017 Direct materials–basketballs Direct materials-volleyballs Direct manufacturing labor-basketballs Direct manufacturing labor-volloyballs Setup Equipment and maintenance costs $ 168,100 303,280 111,800 100,820 157,500 115,200 210,000 $1,166,700 Lease rent Total Other budget information follows: TT Basketballs Volleyballs 85,000 Number of balls 58,000 Machine-hours 13,500 10,500 Number of setups Square footage of production space used 450 300 3,200 8,000

Zarson records the cost of unused capacity as a separate line item and not as a product cost. The following is the budgeted information for Zarson: Zarson's Netballs Budgeted Costs and Activities For the Year Ended December 31, 2017 Direct materials–basketballs Direct materials-volleyballs Direct manufacturing labor-basketballs Direct manufacturing labor-volloyballs Setup Equipment and maintenance costs $ 168,100 303,280 111,800 100,820 157,500 115,200 210,000 $1,166,700 Lease rent Total Other budget information follows: TT Basketballs Volleyballs 85,000 Number of balls 58,000 Machine-hours 13,500 10,500 Number of setups Square footage of production space used 450 300 3,200 8,000

Financial And Managerial Accounting
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter19: Support Department And Joint Cost Allocation
Section: Chapter Questions
Problem 2CMA: Adam Corporation manufactures computer tables and has the following budgeted indirect manufacturing...
See similar textbooks
icon
Related questions
Question

Zarson’s Netballs is a manufacturer of high-quality basketballs and volleyballs. Setup costs are driven by the number of setups. Equipment and maintenance costs increase with the number of machine-hours, and lease rent is paid per square foot. Capacity of the facility is 14,000 square feet, and Zarson is using only 80% of this capacity. Required. Zarson records the cost of unused capacity as a separate line item and not as a product cost. The following is the budgeted information for Zarson:(RESOURCE IN PICTURE ATTATCHED)

Q. What is the budgeted total cost and the cost per unit of resources used to produce (a) basketballs and (b) volleyballs? 

Zarson records the cost of unused capacity as a separate line item and not as a product cost. The following is the budgeted information for Zarson: Zarson's Netballs Budgeted Costs and Activities For the Year Ended December 31, 2017 Direct materials–basketballs Direct materials-volleyballs Direct manufacturing labor-basketballs Direct manufacturing labor-volloyballs Setup Equipment and maintenance costs $ 168,100 303,280 111,800 100,820 157,500 115,200 210,000 $1,166,700 Lease rent Total Other budget information follows: TT Basketballs Volleyballs 85,000 Number of balls 58,000 Machine-hours 13,500 10,500 Number of setups Square footage of production space used 450 300 3,200 8,000
Transcribed Image Text:Zarson records the cost of unused capacity as a separate line item and not as a product cost. The following is the budgeted information for Zarson: Zarson's Netballs Budgeted Costs and Activities For the Year Ended December 31, 2017 Direct materials–basketballs Direct materials-volleyballs Direct manufacturing labor-basketballs Direct manufacturing labor-volloyballs Setup Equipment and maintenance costs $ 168,100 303,280 111,800 100,820 157,500 115,200 210,000 $1,166,700 Lease rent Total Other budget information follows: TT Basketballs Volleyballs 85,000 Number of balls 58,000 Machine-hours 13,500 10,500 Number of setups Square footage of production space used 450 300 3,200 8,000
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 2 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Relevant cost analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Financial And Managerial Accounting
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Managerial Accounting
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Survey of Accounting (Accounting I)
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning
Principles of Cost Accounting
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Cornerstones of Cost Management (Cornerstones Ser…
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Managerial Accounting: The Cornerstone of Busines…
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
SEE MORE TEXTBOOKS