MANAGERIAL ACCOUNTING FUND. W/CONNECT
5th Edition
ISBN: 9781259688713
Author: Wild
Publisher: MCG
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Chapter 4, Problem 5PSA
To determine
Concept introduction:
Activity-based costing:
It is a method that identifies activities in an association and assigns the cost of each activity to all the goods and services according to the real consumption by each.
Requirement 1:
Plant wide overhead rate based on cases, computation of overhead cost that is allocated to each case of extra fine and family style.
To determine
Concept introduction:
Activity-based costing:
It is a method that identifies activities in an association and assigns the cost of each activity to all the goods and services according to the real consumption by each.
Requirement 2:
To explain:
By using plant wide overhead rate evaluate total cost per unit for two products if direct material and labour for extra fine and family style is $6 and $5/case.
To determine
Concept introduction:
Activity based costing:
It is a method that identifies activities in an association and assigns the cost of each activity to all the goods and services according to the real consumption by each.
Requirement 3:
Gross profit for extra fine and family style if market price $18 per case and $9 per case.
To determine
Concept introduction:
Activity based costing:
It is a method that identifies activities in an association and assigns the cost of each activity to all the goods and services according to the real consumption by each.
Requirement 4:
Total cost per case for each product if direct material and direct labour for extra fine and family style is $6 per case and $5 per case.
To determine
Concept introduction:
Activity based costing:
It is a method that identifies activities in an association and assigns the cost of each activity to all the goods and services according to the real consumption by each.
Requirement 5:
If market price is $18 for extra fine and $9 for family style determining its gross profit.
To determine
Concept introduction:
Activity based costing:
It is a method that identifies activities in an association and assigns the cost of each activity to all the goods and services according to the real consumption by each.
Requirement 6:
Pricing analysis be improved if the corporate used departmental rate based on machine hours in department 1 and number of cases in department 2 instead of activity based costing.
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Lynwood, Inc. produces two different products (Product A and Product X) using two different activities: Machining, which uses machine hours as an
activity driver, and Inspection, which uses number of batches as an activity driver. The activity rate for Machining is $180 per machine hour, and the
activity rate for Inspection is $540 per batch. The activity drivers are used as follows:
Product A Product X
Total
Machine hours
1,400
3,100
4,500
Number of batches
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What is the amount of Inspection cost assigned to Product A?
Multiple Cholce
$9.720
$25,380
$252,000
[The following information applies to the questions displayed below.]Sara’s Salsa Company produces its condiments in two types: Extra Fine for restaurant customers and Family Style for home use. Salsa is prepared in department 1 and packaged in department 2. The activities, overhead costs, and drivers associated with these two manufacturing processes and the company’s production support activities follow.
Process
Activity
Overhead cost
Driver
Quantity
Department 1
Mixing
$
5,300
Machine hours
1,700
Cooking
10,000
Machine hours
1,700
Product testing
113,300
Batches
550
$
128,600
Department 2
Machine calibration
$
290,000
Production runs
800
Labeling
16,000
Cases of output
130,000
Defects
10,000
Cases of output
130,000
$
316,000
Support
Recipe formulation
$
98,000
Focus groups
50
Heat, lights, and water
34,000
Machine hours
1,700
Materials handling
73,000
Container types
10
$
205,000…
Hickory Grill Company manufactures two types of cooking grills: the Gas Cooker and the Charcoal Smoker. The Cooker is a premium product sold in upscale outdoor shops; the Smoker is sold in major discount
stores. Following is information pertaining to the manufacturing costs for the current month.
Units
Number of batches
Number of batch moves
Direct materials
Direct labor
Total cost
Gas Cooker
$
$
Charcoal Smoker $
Gas Cooker Charcoal Smoker
2,000
8,000
20
50
Manufacturing overhead follows:
Activity
Cost
Cost Driver
Materials acquisition and inspection $68,000 Amount of direct materials cost
Materials movement
19,600 Numbers of batch moves
Scheduling
43,400 Number of batches
50
90
$70,000
$ 44,000
Rounding instructions: Do not round until your final answers, Round total cost answers to the nearest dollar and per unit answers to the nearest cent.
$
$
Charcoal Smoker $
(a) Determine the total and per-unit costs of manufacturing the Gas Cooker and Charcoal Smoker for the month, assuming…
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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