Units produced per year Prime costs Direct labor hours Machine hours Production runs Inspection hours Maintenance hours Direct labor hours: Scientific calculator Business calculator Total Machine hours: Scientific calculator Business calculator Total Overhead costs: Setup costs Inspection costs Power Maintenance Total Plantwide rate Overhead cost per unit: Scientific Product-Related Data Business Business Scientific 74,000 $239,000 99,800 49,500 100 2,000 2,250 Department Data Department 1 Department 2 77,300 139,720 217,020 23,000 381,800 4 404,800 $232,500 170,000 260,000 208,000 $870,500 740,000 $2,390,000 998,000 495,000 150 3,000 9,000 Required: 1. Compute the overhead cost per unit for each product using a plantwide, unit-based rate using direct labor h per direct labor hour per unit per unit 22,500 858,280 880,780 26,500 113,200 139,700 $232,500 170,000 133,000 219,500 $755,000

Units produced per year Prime costs Direct labor hours Machine hours Production runs Inspection hours Maintenance hours Direct labor hours: Scientific calculator Business calculator Total Machine hours: Scientific calculator Business calculator Total Overhead costs: Setup costs Inspection costs Power Maintenance Total Plantwide rate Overhead cost per unit: Scientific Product-Related Data Business Business Scientific 74,000 $239,000 99,800 49,500 100 2,000 2,250 Department Data Department 1 Department 2 77,300 139,720 217,020 23,000 381,800 4 404,800 $232,500 170,000 260,000 208,000 $870,500 740,000 $2,390,000 998,000 495,000 150 3,000 9,000 Required: 1. Compute the overhead cost per unit for each product using a plantwide, unit-based rate using direct labor h per direct labor hour per unit per unit 22,500 858,280 880,780 26,500 113,200 139,700 $232,500 170,000 133,000 219,500 $755,000

Managerial Accounting

15th Edition

ISBN:9781337912020

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

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

Chapter6: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 2E: Identify cost graphs The following cost graphs illustrate various types of cost behavior: For each...

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Identify cost graphs The following cost graphs illustrate various types of cost behavior: For each of the following costs, identify the cost graph that best illustrates its cost behavior as the number of units produced increases: A. Total direct materials cost B. Electricity costs of 1,000 per month plus 0.10 per kilowatt-hour C. Per-unit cost of straight-line depreciation on factory equipment D. Salary of quality control supervisor, 20,000 per month E. Per-unit direct labor cost
Exercise 7-4 (Algo) Second-Stage Allocation [LO7-4] Klumper Corporation is a diversified manufacturer of industrial goods. The company's activity-based costing system contains the following six activity cost pools and activity rates: Activity Cost Pool Supporting direct labor Machine processing Machine setups Number of units produced per year Direct labor-hours Activity Rate $ 11 per direct labor-hour $5 per machine-hour $ 45 Production orders Shipments $ 120 per shipment Product sustaining $ 900 per product Activity data have been supplied for the following two products: Machine-hours Machine setups Production orders Shipments Product sustaining per setup $ 160 per order Total Expected Activity K425 M67 2,000 200 1,025 2,600 7 7 14 3 50 40 3 3 3 3 Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system?
Using plant wide FOH rate based on direct labor, how much is the FOH rate per unit Assume in Assembly department, machine hours is the basis in calculating the FOH rate what is the departmental FOH rate per unit Assume in Finishing department, direct labor hours is the basis in calculating the FOH rate. What is the departmental foh rate per unit?
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