Managerial Accounting
6th Edition
ISBN: 9781259726972
Author: John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher: McGraw-Hill Education
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Textbook Question
Chapter 4, Problem 9QS
Plant wide rate method P1
A manufacturer uses machine hours to assign overhead costs to products. Budgeted information for the next year follows. Compute the plant wide overhead rate for the next year based on machine hours.
Budgeted |
$544,000 |
Budgeted machine hours ……………………………………………………………………… | 6,400 |
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Ch 26 pro 7
Product Costs using Activity Rates
Nozama.com Inc. sells consumer electronics over the Internet. For the next period, the budgeted cost of the sales order processing activity is $540,000 and 60,000 sales orders are estimated to be processed.
a. Determine the activity rate of the sales order processing activity.$ ________________________per sales order
b. Determine the amount of sales order processing cost that Nozama.com would receive if it had 45,000 sales orders_________________________________.
Question12
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Current Attempt in Progress
Randel Manufacturing has five activity cost pools and two products (a budget tape vacuum and a deluxe tape vacuum). Information is
below:
presented
Cost Drivers by Product
Activity Cost Pool
Cost Driver
Estimated Overhead
Budget
Deluxe
Ordering and Receiving Orders
$130,000
600
400
Machine Setup
Setups
297,000
500
400
Machining
Machine hours
1,000,000
150,000
100,000
Assembly
1,200,000
Parts
800,000
1,600,000
Inspection
550
Inspections
300,000
450
Compute the overhead cost per unit for each product. Production is 700,000 units of Budget and 200,000 units of Deluxe. (Round overhead cost
per unit to 2 decimal places, eg. 12.25 and cost assigned to 0 decimal places, eg. 2,500.)
Overhead cost per unit
per unit
Budget $
per unit
Deluxe $
eTextbook and Media
9:25 PM
)
10/13/20
EXERCISE 1
XYZ Company has identified the following overhead activities, costs, and activity drivers for the
coming year:
Activity
Expected Cost
Activity Driver
Activity Capacity
$45,000
80,000
15,000
30,000
50,000
Number of moves
Material-handling costs..
Machine costs...
450
Machine hours..
Number of orders.
Number of parts..
Number of setups..
20,000
Order costs..
750
Receiving costs..
Setup costs..
50,000
250
Assume that each activity corresponds to a process. XYZ's normal activity is 5,000 direct labor
hours. The following two jobs were completed during March:
Job X-1
Job Y-4
$1,500
$750
Direct materials
$2,000
$750
Direct labor ($15 per hour)...
Units completed...
Number of moves.
Machine hours..
Number of orders.
Number of parts.
Number of setups..
200
200
3
6
125
75
3
12
200
800
1
4
Required:
1. Determine the unit cost for each job using direct labor hours to apply overhead.
Chapter 4 Solutions
Managerial Accounting
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. 18DQCh. 4 - Prob. 1QSCh. 4 - Prob. 2QSCh. 4 - Prob. 3QSCh. 4 - Prob. 4QSCh. 4 - Prob. 5QSCh. 4 - Prob. 6QSCh. 4 - Prob. 7QSCh. 4 - Prob. 8QSCh. 4 - Plant wide rate method P1 A manufacturer uses...Ch. 4 - Prob. 10QSCh. 4 - Prob. 11QSCh. 4 - Prob. 12QSCh. 4 - Prob. 13QSCh. 4 - Prob. 14QSCh. 4 - Prob. 15QSCh. 4 - Prob. 16QSCh. 4 - Exercise 17-17 Identifying activity levels C3...Ch. 4 - Prob. 2ECh. 4 - Exercise 17-1 Computing Plantwide overhead rates...Ch. 4 - Prob. 4ECh. 4 - Prob. 5ECh. 4 - Prob. 6ECh. 4 - Exercise 17-5 Departmental overhead rates P2 Refer...Ch. 4 - Prob. 8ECh. 4 - Prob. 9ECh. 4 - Prob. 10ECh. 4 - Prob. 11ECh. 4 - Prob. 12ECh. 4 - Prob. 13ECh. 4 - Prob. 14ECh. 4 - Prob. 15ECh. 4 - Prob. 16ECh. 4 - Exerciser 17-14 Activity-based costing P3 A2...Ch. 4 - Prob. 18ECh. 4 - Problem 17-1A Comparing costs using ABC with the...Ch. 4 - Prob. 2PSACh. 4 - Prob. 3PSACh. 4 - Prob. 4PSACh. 4 - Prob. 5PSACh. 4 - Prob. 1PSBCh. 4 - Prob. 2PSBCh. 4 - Prob. 3PSBCh. 4 - Prob. 4PSBCh. 4 - Prob. 5PSBCh. 4 - Prob. 4SPCh. 4 - Prob. 1AACh. 4 - Prob. 2AACh. 4 - Prob. 3AACh. 4 - Prob. 1BTNCh. 4 - Prob. 2BTNCh. 4 - Accounting professionals who for private companies...Ch. 4 - Prob. 4BTNCh. 4 - Prob. 5BTNCh. 4 - Visit and observe the processes of three different...
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