Consider the following data for two products of Vigano Manufacturing. Budgeted Cost Activity Machine setup Parts handling Quality inspections Total budgeted overhead Unit Information Units produced Direct materials cost Direct labor cost Direct labor hours Activity Driver $ 26,000 (20 machine setups) 20,800 (16,000 parts) 31,200 (100 inspections) $ 78,000 Actual Activity Usage Setups Parts Inspections Product A 2,600 units $36 per unit $ 56 per unit 2 per unit Product B 520 units $ 46 per unit $ 66 per unit 2.50 per unit 1. Using a plantwide overhead rate based on 6,500 direct labor hours, compute the total product cost per unit for each product. 2. Consider the following additional information about these two products. If activity- based costing is used to allocate overhead cost, (a) compute overhead activity rates, (b) allocate overhead cost to Product A and Product B and compute overhead cost per unit for each, and (c) compute product cost per unit for each. Product A 8 setups 10,000 parts 40 inspections Product B 12 setups 6,000 parts 60 inspections

Consider the following data for two products of Vigano Manufacturing. Budgeted Cost Activity Machine setup Parts handling Quality inspections Total budgeted overhead Unit Information Units produced Direct materials cost Direct labor cost Direct labor hours Activity Driver $ 26,000 (20 machine setups) 20,800 (16,000 parts) 31,200 (100 inspections) $ 78,000 Actual Activity Usage Setups Parts Inspections Product A 2,600 units $36 per unit $ 56 per unit 2 per unit Product B 520 units $ 46 per unit $ 66 per unit 2.50 per unit 1. Using a plantwide overhead rate based on 6,500 direct labor hours, compute the total product cost per unit for each product. 2. Consider the following additional information about these two products. If activity- based costing is used to allocate overhead cost, (a) compute overhead activity rates, (b) allocate overhead cost to Product A and Product B and compute overhead cost per unit for each, and (c) compute product cost per unit for each. Product A 8 setups 10,000 parts 40 inspections Product B 12 setups 6,000 parts 60 inspections

Name: Consider the following data for two products of Vigano Manufacturing.
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Description: Consider the following data for two products of Vigano Manufacturing.BudgetedCostActivityMachine setupParts handlingQuality inspectionsTotal budgeted overheadUnit InformationUnits producedDirect materials costDirect labor costDirect labor hoursActua

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter4: Activity-based Costing

Section: Chapter Questions

Problem 12E: Activity cost pools, activity rates, and product costs using activity-based costing Caldwell Home...

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