12/ Toshiba Corporation is producing three products Refrigerators, printers and projectors in their unit. During the year 2019,the total overhead expenses are; Procurement cost OMR 480,000 Machine set up cost OMR 250,000 Particulars Refrigerators Printers Projectors Direct labor hours 1000 1500 2500 Number of orders placed 70 50 120 Machine set up hours 327 100 73 Find out machine setup hour rate using activity based costing. a. None of the options b. OMR 40 c. OMR 500 d. OMR 50

12/ Toshiba Corporation is producing three products Refrigerators, printers and projectors in their unit. During the year 2019,the total overhead expenses are; Procurement cost OMR 480,000 Machine set up cost OMR 250,000 Particulars Refrigerators Printers Projectors Direct labor hours 1000 1500 2500 Number of orders placed 70 50 120 Machine set up hours 327 100 73 Find out machine setup hour rate using activity based costing. a. None of the options b. OMR 40 c. OMR 500 d. OMR 50

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 1EA: Steeler Towel Company estimates its overhead to be $250,000. It expects to have 100,000 direct labor...

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Steeler Towel Company estimates its overhead to be $250,000. It expects to have 100,000 direct labor hours costing $2,500,000 in labor and utilizing 12,500 machine hours. Calculate the predetermined overhead rate using: A. Direct labor hours B. Direct labor dollars C. Machine hours
Hammer Company produces a variety of electronic equipment. One of its plants produces two laser printers: The Deluxe and the Regular. At the beginning of the year 2019, the following data were prepared for this plant: Deluxe Regular Quantity 20 000 80 000 Selling price $90 $75 Unit direct cost $53 $48 In addition, the following information was provided so that overhead costs could be assigned to each product: Activity name Activity Cost Activity driver Deluxe Regular Set-up $200,000 Number of set-up 3 000 5 000 Machining 800,000 Machine hours 10 000 30 000 Engineering 600,000 Engineering hours 100 000 50 000 Packing 100,000 Packing orders 1 000 4 000 Total overhead costs $1,700,000 Required: Calculate the production overhead cost allocated to each product in 2019 using machine-hours as the cost driver (traditional costing system). Calculate the…
Vakos Manufacturers uses the traditional approach in allocating manufacturing overheads base hours. They have provided you with the following information: E For year ended 30 December 2022: Purchases - direct materials Cost per labour hour Manufacturing Overhead rate Actual Labour hours Actual Machine hours a) b) c) Actual manufacturing overheads Selling and admin expenses Interest paid Sales Tax rate Inventories at year end: Materials Work in Process Finished Goods 205,000 6 15/mach.hr 20,000hrs 30,000hrs 440,000 400,000 40,000 2,000,000 30% 2021 2022 (E) (E) 5,000 10,000 20,000 30,000 25,000 15,000 Compute the total Applied Manufacturing Overhead costs using the rate. Compute the MO Overhead cost variance and state whether over or underapplied and how the variance would be treated. Prepare a Statement of Goods Manufactured for year ended 31 December 2022 using Actual M.O costs. Prepare the Income Statement for year ended 30 December 2022.
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Light Up Corporation manufactures and sells two types of decorative lamps, Knox and Ayer. The following data are available for the year 2020. Machine setup-hours is the only driver of manufacturing overhead costs. Light Up has a set up capacity of 960 hours. (Click the icon to view the information.) Calculate the manufacturing overhead costs budget (label it Schedule 5). Schedule 5: Manufacturing Overhead Costs Budget for the Year Ending December 31, 2020 Machine Setup Overhead Costs Total manufacturing overhead costs
Tristion Inc. has two production departments, and estimated the following information for the 2022 fiscal year Assembly Dept. Testing Dept. Overhead $1,496,250 $365,625 Direct labour hours 356,250 81,250 Machine hours 80,000 162,500 Currently, the company uses departmental rates to assign overhead costs. Overhead costs are assigned on the basis of direct labour hours for the Assembly Department and machine hours for the Testing Department. For September, the company reported the following actual data: Assembly Dept. Testing Dept. Overhead $107,560 $34,340 Direct labour hours 28,600 6,770 Machine hours 5,700 13,520 Required (A) What are the predetermined overhead rates for each department? (B) Assume that Job R777 used 4 direct labour hours in the Assembly Department and 3 machine hours in the Testing Department. Compute the overhead assigned to Job R777. (C) How much overhead was applied in the month of September? (D)…
Compute for the total Factory overhead cost of Department H if the company uses the direct method and the producing departments using the following bases: Department H, 100,000 direct labor hours; and Department G, 195,000 direct labor hours. The Madalilangko Ink Company prepared the following table for the year 2019: Production Service Departments Departments H G U V W Rent 250,000 770,000 15,000 14,500 7,000 Repairs 100,000 120,500 23,000 30,000 7,500 Fuel 350,000 420,000 9,500 7,000…
Fulcrum Industries manufactures dining chairs and tables. The following information is available in December 2020: Dining Chairs Tables Total CostMachine setups 200 600 $48,000Inspections 250 470 $72,000Labor hours 2,600 2,400 Fulcrum is considering switching from one overhead rate based on labor hours to activity-based costing.InstructionsPerform the following analyses for these two components of overhead:a. Compute total machine setups and inspection costs assigned to each product, using a single overhead rate.b. Compute total machine setups and inspection costs assigned to each product, using activity-based costing.c. Comment on your findings.
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