MANAGERIAL ACCOUNTING FUND. W/CONNECT
5th Edition
ISBN: 9781259688713
Author: Wild
Publisher: MCG
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Chapter 4, Problem 1E
To determine
Concept introduction:
Predetermined overhead allocation:
Manufacturing overhead cost is the pool of all indirect costs incurred for the production. These are the costs which are not directly traceable to the product.
Requirement 1:
To calculate:
Plant wide overhead allocation rate.
To determine
Concept introduction:
Predetermined overhead allocation:
Manufacturing overhead cost is the pool of all indirect costs incurred for the production. These are the costs which are not directly traceable to the product. Manufacturing costs include indirect material indirect labor and overheads. These costs are allocated to the products using the predetermined overhead allocation rate. The formula of predetermined overhead allocation rate is as follows:
Requirement 2:
To calculate:
Overhead assigned to each Model.
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Students have asked these similar questions
Xie Company identified the following activities, costs, and activity drivers for 2017. The company manufactures two types of go-karts: Deluxe and Basic.
Activity
Expected Costs
Expected Activity
Handling materials
$
625,000
100,000
parts
Inspecting product
900,000
1,500
batches
Processing purchase orders
105,000
700
orders
Paying suppliers
175,000
500
invoices
Insuring the factory
300,000
40,000
square feet
Designing packaging
75,000
2
models
Required:Compute the activity rate for each activity, assuming the company uses activity-based costing. (Round activity rate answers to 2 decimal places.)
Xie Company identified the following activities, costs, and activity drivers for 2017. The company manufactures two types of go-karts: Deluxe and Basic.
Activity
Expected Costs
Expected Activity
Handling materials
$
625,000
100,000
parts
Inspecting product
900,000
1,500
batches
Processing purchase orders
105,000
700
orders
Paying suppliers
175,000
500
invoices
Insuring the factory
300,000
40,000
square feet
Designing packaging
75,000
2
models
Assume that the following information is available for the company’s two products for the first quarter of 2017.
Deluxe Model
Basic Model
Production volume
10,000
units
30,000
units
Parts required
20,000
parts
30,000
parts
Batches made
250
batches
100
batches
Purchase orders
50
orders
20
orders
Invoices
50
invoices
10
invoices
Space occupied
10,000
sq. ft.
7,000
sq. ft
Models
1
model
1
model
Required:Compute activity rates for each activity and assign overhead…
X Co. Ltd. produces three types of products A, B and C and keeps
accounts for Process I, Process II and Process III. Following statements show the relative
importance of each type of product in each process :
Process I Points
Process II Points
Process III Points
Product A
Product B
2
4
2
4
2
1
Product C
8
3
2
Costs for each process for March, 2019 are as follows :
Process I
Process II
$
9,000
3,000
5,100
Process III
$
9,000
1,800
2,400
Total
Materials
Labour
Overheads
12,000
4,200
3,000
$
30,000
9,000
10,500
19,200
17,100
13,200
49,500
Production during the period :
Product A 600 units ; Product B 300 units ; Product C 900 units.
You are required to-
(a) prepare a statement showing weighted average production for each process and
(b) compute the cost for each type of product.
Chapter 4 Solutions
MANAGERIAL ACCOUNTING FUND. W/CONNECT
Ch. 4 - Prob. 1MCQCh. 4 - Prob. 2MCQCh. 4 - All of the following are examples of batch-level...Ch. 4 - Prob. 4MCQCh. 4 - Prob. 5MCQCh. 4 - Why are overhead costs allocated to products and...Ch. 4 - What are three common methods of assigning...Ch. 4 - Why are direct labor hours and machine hours...Ch. 4 - What are the advantages of using a single plant...Ch. 4 - The usefulness of a single plant wide overhead...
Ch. 4 - What is a cost object?Ch. 4 - Explain why a single plantwide overhead rate can...Ch. 4 - Why are multiple departmental overhead rates more...Ch. 4 - Prob. 9DQCh. 4 - Prob. 10DQCh. 4 - Prob. 11DQCh. 4 - Prob. 12DQCh. 4 - Prob. 13DQCh. 4 - Prob. 14DQCh. 4 - 15. What are the four activity levels associated...Ch. 4 - Prob. 16DQCh. 4 - Prob. 17DQCh. 4 - Prob. 1QSCh. 4 - Prob. 2QSCh. 4 - Plant wide rate method P1 A manufacturer uses...Ch. 4 - Prob. 4QSCh. 4 - Prob. 5QSCh. 4 - Prob. 6QSCh. 4 - Prob. 7QSCh. 4 - Prob. 8QSCh. 4 - Prob. 9QSCh. 4 - Prob. 10QSCh. 4 - Prob. 11QSCh. 4 - Prob. 12QSCh. 4 - Prob. 13QSCh. 4 - Prob. 14QSCh. 4 - Prob. 15QSCh. 4 - Prob. 1ECh. 4 - Prob. 2ECh. 4 - Prob. 3ECh. 4 - Prob. 4ECh. 4 - Prob. 5ECh. 4 - Prob. 6ECh. 4 - Prob. 7ECh. 4 - Prob. 8ECh. 4 - Refer to the information in Exercise 4-7 to answer...Ch. 4 - Consider the following date for two products of...Ch. 4 - Prob. 11ECh. 4 - Prob. 12ECh. 4 - Prob. 13ECh. 4 - Exerciser 17-14 Activity-based costing P3 A2...Ch. 4 - Prob. 15ECh. 4 - Prob. 16ECh. 4 - Prob. 17ECh. 4 - Prob. 18ECh. 4 - Prob. 1PSACh. 4 - Prob. 2PSACh. 4 - Prob. 3PSACh. 4 - Prob. 4PSACh. 4 - Prob. 5PSACh. 4 - Prob. 1PSBCh. 4 - Prob. 2PSBCh. 4 - Ryan Foods produces gourmet gift baskets that it...Ch. 4 - Prob. 4PSBCh. 4 - Prob. 5PSBCh. 4 - Prob. 4SPCh. 4 - Prob. 1BTNCh. 4 - Prob. 2BTNCh. 4 - Prob. 3BTNCh. 4 - Prob. 4BTNCh. 4 - Accounting professionals who for private companies...Ch. 4 - Prob. 6BTNCh. 4 - Prob. 7BTNCh. 4 - Prob. 8BTNCh. 4 - Prob. 9BTN
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