ndenccinstructure.com/courses/3788/assignments/35969Question 19View Policies-/1Current Attempt in ProgressBangor Company manufactures two products, Velveeto and Fondant. Bangor has estimated overhead costs as follows: setting up machines($160,000), machining ($300,000) and inspecting ($100,000). Information on the two products follows:Velveeto FondantDirect labor hours60,000100,000Machine setups2,4001,600Machine hours96,000 104,000Inspections3,2002,800Overhead is applied to Fondant using direct labor hours. What is the total amount of overhead charged to this product line using traditionalcosting?$280,000O $210,000$350,000O $105,0002:29 PM10/13/2019e

Compute overhead rate using traditional method as shown below:

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Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 5PB: Wrappers Tape makes two products: Simple and Removable. It estimates it will produce 369,991 units...

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Wrappers Tape makes two products: Simple and Removable. It estimates it will produce 369,991 units of Simple and 146,100 of Removable, and the overhead for each of its cost pools is as follows: It has also estimated the activities for each cost driver as follows: Â How much is the overhead allocated to each unit of Simple and Removable?
View Policies Current Attempt in Progress Boswell Company manufactures two products, Regular and Supreme. Boswell's overhead costs consist of machining, $1400000; and assembling, $700000. Information on the two products is: Regular Supreme Direct labor hours 10000 15000 Machine hours 10000 30000 Number of parts 90000 160000 Overhead applied to Regular using activity-based costing is O $1260000. O $1498000. O $602000. O $840000. Save for Later Attempts: 0 of 1 used Submit Answer
eBook Carlton's Kitchen's three cost pools and overhead estimates are as follows: Activity Cost Pool Cost Driver EstimatedOverhead Use perProduct A Use perProduct B Machine Setups Setups $162,000 5,000 4,000 Assembly Number of Parts 68,000 24,000 44,000 Machine Maintenance Machine Hours 150,000 13,000 37,000 Compare the overhead allocation using (A) the traditional allocation method and (B) the activity-based costing method. (Hint: the traditional method uses machine hours as the allocation base.) For those boxes in which you must enter subtractive or negative numbers use a minus sign. Product A Product B Total Overhead (ABC) $fill in the blank 1 $fill in the blank 2 Total overhead (traditional) fill in the blank 3 fill in the blank 4 Difference $fill in the blank 5 $fill in the blank 6
Deuter Int’l Business manufactures two products, Product L11 and Product L12. The company is considering adopting an activity-based costing system with the following activity pools, activity measures, and expected activity: Expected Activity Activity Cost Pools Estimated Overhead Cost Product L11 Product 12 Total Machine setups required $200,000 600 1,400 2,000 Purchase orders issued 38,382 500 100 600 Machine-hours required 92,650 6,800 10,200 17,000 $331,032 The amount overhead costs assigned to Product L11 would be closest to: Question 15 options: 1) $331,032 2) $129,045 3) $165,516 4) $130,758
Multiple Versus Single Overhead Rates, Activity Drivers Deoro Company has identified the following overhead activities, costs, and activity drivers for the coming year: Activity Expected Cost Activity Driver Activity Capacity Setting up equipment Ordering costs Machine costs Direct materials Direct labor Units completed Direct labor hours Number of setups Number of orders Machine hours Machine hours Receiving Receiving hours Deoro produces two models of dishwashers with the following expected prime costs and activity demands: Model A Model B $754,000 473,000 7,800 2,400 Receiving hours Model A $407,490 374,000 952,200 6,500 360 6,100 12,600 24,400 17,000 2,600 6,400 The company's normal activity is 8,900 direct labor hours. Model B 405,000 Model A $593,000 478,000 Model B Number of setups Number of orders 16,800 Required: 1. Determine the unit cost for each model using direct labor hours to apply overhead. Round intermediate calculations and final answers to nearest cent. Unit Cost 150…
ABC; pricingChester Inc. has identified activity centers to which overhead costs are assigned. The cost pool amounts for these centers and their selected activity drivers for the year follow. Activity Centers Costs Activity Drivers Utilities $1,440,000 90,000 machine hours Scheduling and setup 1,310,400 1,170 setups Material handling 3,072,000 2,400,000 pounds of material The company’s products and other operating statistics follow. Product A Product B Product C Direct costs $96,000 $96,000 $108,000 Machine hours 45,000 15,000 30,000 Number of setups 195 570 405 Pounds of material 750,000 450,000 1,200,000 Number of units produced 60,000 30,000 90,000 Direct labor hours 48,000 27,000 75,000 a. Calculate the unit cost for each product using the appropriate cost drivers for each product.Note: Round your final answers to two decimal places (i.e. round $4.355 to $4.36). Product A Product B Product C Unit cost Answer Answer Answer b.…
ABC; pricingChester Inc. has identified activity centers to which overhead costs are assigned. The cost pool amounts for these centers and their selected activity drivers for the year follow. Activity Centers Costs Activity Drivers Utilities $1,440,000 90,000 machine hours Scheduling and setup 1,310,400 1,170 setups Material handling 3,072,000 2,400,000 pounds of material The company’s products and other operating statistics follow. Product A Product B Product C Direct costs $96,000 $96,000 $108,000 Machine hours 45,000 15,000 30,000 Number of setups 195 570 405 Pounds of material 750,000 450,000 1,200,000 Number of units produced 60,000 30,000 90,000 Direct labor hours 48,000 27,000 75,000 b. Before it installed an ABC system, Chester used a traditional costing system that allocated factory overhead to products using direct labor hours. The firm operates in a competitive market and sets product prices at cost plus a 25 percent markup.…
Delight Business Ltd (DIB) manufactures two products, Product L11 and Product L12. The company is considering adopting an activity-based costing system with the following activity pools, activity measures, and expected activity: Expected Activity Activity Cost Pools Estimated Overhead Cost Product L11 Product L12 Total Machine setups required $200,000 600 1,400 2,000 Purchase orders issued 38,382 500 100 600 Machine-hours required 92,650 6,800 10,200 17,000 $331,032 The amount overhead costs assigned to Product L12 would be closest to: Question 15 options: 1) $165,516 2) $201,987 3) $200,274 4) $331,032
Required information Heidelberg Fabrication manufactures two products, G-09 and G-35: Units produced Direct materials cost per unit Machine-hours per unit Production runs per quarter Machine depreciation Setup labor Materials handling Total G-09 19,800 $ 7 4 144 Production at the plant is automated and any labor cost is included in overhead. Data on manufacturing overh plant follow: a. Using current costing system b. Using proposed ABC system G-09 $ 106,920 53,460 42,768 $ 203,148 Required: a. Compute the unit costs for the two products, G-09 and G-35, using the current costing system at Heidelberg (using as the allocation basis). b. Compute the unit costs for the two products, G-09 and G-35, using the proposed ABC system at Heidelberg. Note: For all requirements, do not round intermediate calculations. Round your answers to 2 decimal places. G-35 3,960 $19 Unit Cost 7 72 G-35
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