Required:a. Compute the unit costs for the two products, G-09 and G-35, using the current costing system at Heidelberg (using machine-hoursas 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.a. Using current costing systemb. Using proposed ABC systemG-09Unit CostG-35MEN Heidelberg Fabrication manufactures two products, G-09 and G-35:Units producedDirect materials cost per unitMachine-hours per unitProduction runs per quarterMachine depreciationSetup laborMaterials handlingTotalProduction at the plant is automated and any labor cost is included in overhead. Data on manufacturing overhead at theplant follow:Required:G-0919,300$74144Exercise 9-37 (Algo) Activity-Based Costing (LO 9-4)Using current costing system$ 104,22052,11041, 688$ 198,018G-09G-353,860$19a. Compute the unit costs for the two products, G-09 and G-35, using the current costing system at Heidelberg (using machine-hoursas 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.Unit Cost772G-35

Name: Required:a. Compute the unit costs for the two products, G-09 and G-3
Uploaded: 2024-03-20T06:32:49.000Z
Channel: Bartleby
Description: Required:a. Compute the unit costs for the two products, G-09 and G-35, using the current costing system at Heidelberg (using machine-hoursas the allocation basis).b. Compute the unit costs for the two products, G-09 and G-35, using the proposed ABC

Overhead are the total indirect costs incurred in connection with production of a product. Overheads…

Business

Accounting

Units produced Direct materials cost per unit Machine-hours per unit Production runs per quarter Machine depreciation Setup labor 19,300 $7 4 144 Materials handling Total Production at the plant is automated and any labor cost is included in overhead. Data on manufacturing overhead at the plant follow: 3,860 $19 $ 104,220 52,110 41, 688 $ 198,018 7 72 Exercise 9-37 (Algo) Activity-Based Costing (LO 9-4) Required: a. Compute the unit costs for the two products, G-09 and G-35, using the current costing system at Heidelberg (using machine-hours 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.

Units produced Direct materials cost per unit Machine-hours per unit Production runs per quarter Machine depreciation Setup labor 19,300 $7 4 144 Materials handling Total Production at the plant is automated and any labor cost is included in overhead. Data on manufacturing overhead at the plant follow: 3,860 $19 $ 104,220 52,110 41, 688 $ 198,018 7 72 Exercise 9-37 (Algo) Activity-Based Costing (LO 9-4) Required: a. Compute the unit costs for the two products, G-09 and G-35, using the current costing system at Heidelberg (using machine-hours 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.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter4: Activity-based Costing

Section: Chapter Questions

Problem 30P: Primera Company produces two products and uses a predetermined overhead rate to apply overhead....

See similar textbooks

Similar questions

Lampierre makes brass and gold frames. The company computed this information to decide whether to switch from the traditional allocation method to ABC: The estimated overhead for the material cost pool is estimated as $12,500, and the estimate for the machine setup pool is $35,000. Calculate the allocation rate per unit of brass and per unit of gold using: A. The traditional allocation method B. The activity-based costing method
Lampierre makes silver and gold candlesticks. The company computed this information to decide whether to switch from the traditional allocation method to ABC. The estimated overhead for the material cost pool is estimated as $45,000, and the estimate for the machine setup pool is $55,000. Calculate the allocation rate per unit of silver and per unit of gold using: A. The traditional allocation method B. The activity-based costing method
Selected information from Skylar Studios shows the following: Prepare journal entries to record the following: raw material purchased direct labor incurred depreciation expense (hint: this is part of manufacturing overhead) raw materials used overhead applied on the basis of $0.50 per machine hour the transfer from department 1 to department 2
Selected information from Hernandez Corporation shows the following: Prepare journal entries to record the following: raw material purchased direct labor incurred depreciation expense (hint: this is part of manufacturing overhead) raw materials used overhead applied on the basis of $0.50 per machine hour the transfer from department 1 to department 2
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 Required: Production at the plant is automated and any labor cost is included in overhead. Data on manufacturing overhead at the plant follow: G-09 19,900 $ 7 4 144 a. Overhead rate b. Machine depreciation b. Setup labor b. Materials handling G-35 3,980 $19 $ 107,460 53, 730 42,984 $ 204,174 a. Heidelberg currently applies overhead on the basis of machine-hours. What is the predetermined overhead rate for the quarter? Note: Round your answer to 2 decimal places. b. Heidelberg is thinking of adopting an ABC system. They have tentatively chosen the following cost drivers: machine-hours for machine depreciation, production runs for setup labor, and direct material dollars for materials handling. Compute the cost driver rates for the proposed system at…
Acme Company manufactures and sells two products, Product A and Product B. Here are data regarding the expected production and direct labor hours (DLHs): Product A Product B Activity Labor-related Acme applies overhead using activity-based rates based on the following estimates: Production 600 units 400 units DLHs Machine setups Setups Machining MHs O $1,127,785 $796,812 DLH per unit 6.0 DLHS 3.0 DLHS O $663,551 O $529,680 Allocation Overhead base costs $127,500 $60,110 $940,160 Total DLHs 3,600 DLHS 1,200 DLHS Usage of allocation base Product B Product A 3,600 700 4,000 The total overhead applied to Product A is closest to: (Round overhead rates to nearest penny.) 1,200 400 3,100 Total 4,800 1,100 7,100
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 Production at the plant is automated and any labor cost is included in overhead. Data on manufacturing overhead at the plant follow: Materials handling Total G-09 19,700 $ 7 4 G-35 3,940 $ 19 7 72 $ 106,380 53,190 42,552 $ 202,122 a. Overhead rate b. Machine depreciation b. Setup labor b. Materials handling Exercise 9-36 (Algo) Activity-Based Costing and Cost Driver Rates (LO 9-4) Required: a. Heidelberg currently applies overhead on the basis of machine-hours. What is the predetermined overhead rate for the quarter? Note: Round your answer to 2 decimal places. b. Heidelberg is thinking of adopting an ABC system. They have tentatively chosen the following cost drivers: machine-hours for machine depreciation, production runs for setup labor, and direct material dollars for materials handling.…
Activities and Activity Measures Expected Activity Estimated Overhead Costs Product 1 Product 2 Hand-processing (direct labor-hours) $ 320,000 45,000 55,000 Setting up equipment (number of setups) 150,000 9,000 21,000 Administering parts inventories (number of part types) 30,000 110 90 $ 500,000 Transformation Corporation has provided the information set forth above regarding the overhead to be allocated between the two products it produces: CDE and EFG. What is the activity rate for the hand-processing units activity? multiple choice $3.20 per setup Incorrect $5.00 per setup $150.00 per part-type $3.20 per direct labor-hour
Concord Company manufactures two products, Mini A and Maxi B. Concord's overhead costs consist of setting up machines- $860000; machining- $2020000; and inspecting- $570000. Information on the two products is: Direct labour hours Machine setups Machine hours Inspections Mini A Maxi B $1324000. $1660400. $1690400. O $2542105. 10000 600 24000 800 28000 400 26000 700 Overhead applied to Maxi B using activity-based costing is
Two products are manufactured by FBGNPU422 Corp. FBGNPU422 uses conventional job-order costing with a plantwide predetermined overhead rate and direct labor hours as the allocation base. FBGNPU422's records reveal the following per-unit costs for direct materials and direct labor: Product A Product B Production volume (units) 5,000 $42 2,000 $37 Direct materials (ID#12705) Direct labor: 2 hours at $10/hour 5 hours at $10/hour $20 $50 FBGNPU422's accountants are thinking about a shift to activity-based costing and they collected the following MOH data: Expected Activity Product A Activity Cost Pool Setups General factory Machine processing Estimated OH Cost Activity cost driver Number of setups Product B $360,000 $2,140,000 $280,000 80 40 10,000 2,000 Direct labor hours 10,000 1,000 Machine hours Q: Assuming that FBGNPU422's actual and expected direct labor hours are the same, what is the unit product cost of Product B under conventional job-order costing? A: $ 10 of 25
Blue Ridge Marketing Inc. manufactures two products, A and B. Presently, the company uses a single plantwide factory overhead rate for allocating overhead to products. However, management is considering moving to a multiple department rate system for allocating overhead. The following table presents information about estimated overhead and direct labor hours. OverheadDirectLabor Hours (dlh)ProductA B Painting Dept.$260,10011,200dlh14dlh4dlhFinishing Dept.75,2008,400220Totals$335,30019,600dlh16dlh24dlhThe factory overhead allocated per unit of Product B in the Painting Department if Blue Ridge Marketing Inc. uses the multiple production department factory overhead rate method is
Requifé 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 G-09 19,400 Machine depreciation Setup labor Materials handling Total $7 4 144 6-35 3,880 $19 Production at the plant is automated and any labor cost is included in overhead. Data on manufacturing overhead at the plant follow $ 104,760 52,380 41,904 $ 199,044 7 72 Required: a. Compute the unit costs for the two products, G-09 and G-35, using the current costing system at Heidelberg (using machine-hours 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.