Estimated costs for activity cost pools and other item(s) are as follows: Machining $500000 Assembling 270000 Advertising 450000 Inspecting and testing 245000 Total estimated overhead is $1220000. $1015000. $1465000. $770000.
Q: Cost Drivers Activity Cost Pools Purchasing Estimated Expected Use of Overhead Cost Drivers Number…
A: As we can see from the calculations below that TRI-X product should be discontinued as it’s not able…
Q: Activity Cost Pool Cost Driver Estimated Overhead Use per Product A Use per Product B Machine Setups…
A: given Activity Cost Pool Cost Driver Estimated Use per Use per Overhead Product A Product B…
Q: For its inspecting cost pool, Ellsworth, Inc. expected overhead cost of $560000 and 4000…
A: Activity Based overhead rate = Expected overhead cost/Expected number of inspections This Activity…
Q: Porthos Co. has identified an activity cost pool to which it has allocated estimated ovehead of…
A: We first need to understand the meaning of cost driver. A cost driver is a unit that derives the…
Q: Estimated costs for activity cost pools and other item(s) are as follows: Machining $500000…
A: Advertising expenses are considered as overhead costs as these are part of Selling and…
Q: Tidwell Industries has the following overhead costs and cost drivers. Direct labor hours are…
A: Overhead application rate =Total estimated overhead/estimated direct labor hours
Q: The Randolph Company uses activity – based costing and provides this information: Manufacturing…
A: Activity based costing assigns cost to each and every activity on the basis of the cost driver.
Q: For its inspecting cost pool, Ellsworth, Inc. expected overhead cost of $420000 and 4000…
A: Overheads are considered as fixed and common expenses that should be allocated to the products on…
Q: Reynoso Corporation manufactures titanium and aluminum tennis racquets. Reynoso's total overhead…
A: Under activity based costing, the costs are allocated on the basis of cost drivers, which are…
Q: Y Company uses activity-based costing for its product Delux and Melux. The total estimated annual…
A: Activity rate = RO 530,000 / 5000 set ups Activity rate = RO 106 per set up
Q: Appleton Company uses activity-based costing to apply overhead to and Apple glen. Appleton…
A:
Q: Company X is considering switching to an activity-based costing system for computing unit product…
A: The predetermined overhead rate is calculated as estimated overhead cost divided by estimated base…
Q: Porthos Co. has identified an activity cost pool to which it has allocated estimated ovehead of…
A:
Q: Forner, Inc., manufactures and sells two products: Product Z1 and Product Z8. The company has an…
A: Under activity-based costing indirect overheads costs are allocated based on cost drivers consumed…
Q: Boswell Company manufactures two products, Regular and Supreme. Boswell’s overhead costs consist of…
A: Using traditional costing, the total overhead cost is divided using the direct labor hours. In…
Q: P Company uses activity-based costing for its product Even and Odd. The total estimated annual…
A: Formula: Overheads allocated to product Even for set up cost = ( Total estimated annual overhead /…
Q: Reynoso Corporation manufactures titanium and aluminum tennis racquets. Reynoso’s total overhead…
A: Total costs assigned to Titanium rackets = Number of labor hours used in manufacture of titanium…
Q: Boswell Company manufactures two products, Regular and Supreme. Boswell's overhead costs consist of…
A: First, compute the total estimated overhead as shown below: Total estimated overhead = $1,200,000 +…
Q: Mia Company uses activity-based costing and reports the following for this year. Activity Cutting…
A: Activity based costing is one of the type of costing system, under which all indirect costs and…
Q: Explain the concept of a pool rate in activity-based costing.
A: Activity-based costing a method of assigning overheads based on usage of a particular activity. Pool…
Q: COVID Co. produces two different products (A and X) using two different activities: Machining, which…
A: The correct answer is Option(a).
Q: GB Inc. produces three products with the following production and cost information (SEE PICCTURE…
A: Solution:
Q: The company is thinking of using Activity based Costing system and has identifies four activities.…
A: Formula: Activity rate for setup cost pool = Expected Manufacturing Overhead Cost/ Expected number…
Q: Tidwell Industries has the following overhead costs and cost drivers. Direct labor hours are…
A: Overhead application rate for ordering and receiving = Estimated overhead cost for Ordering and…
Q: abor hours 10000 15000 Machine hours 10000 30000 Number of parts 90000 160000 Overhead applied to…
A: Predetermined overhead Rate =Total overhead cost/ Total Direct labor hours…
Q: Carbon Company provides the following information about resources. Unused Resources Capacity…
A: Income statement is a financial statement that records all the expenses and income of the company…
Q: Boswell Company manufactures two products, Regular and Supreme. Boswell’s overhead costs consist of…
A: Activity-based Costing is a method of assigning cost of each activity present in the production…
Q: From your readings and videos, you learned about cost estimation using the hig low method. A company…
A: The high low method is used to separate the fixed cost and variable cost from the mixed cost.
Q: Pioneer Company uses activity based costing and gives you the following data regarding cost pools…
A: Given: ABC Total estimated overhead = to be computed Machine related RO 180,000 Material handling…
Q: Angel Corporation uses activity-based costing to determine product costs for external financial…
A: First of all we will have to divide each activity estimated overhead by total activity pool.…
Q: Machining costs $375,000 Setup costs 120,000 Inspection costs 105,000 Total Overhead Costs 600,000…
A: There are two types of costing systems that are used in the business. One is traditional costing, in…
Q: Boswell Company manufactures two products, Regular and Supreme. Boswell's overhead costs consist of…
A: Predetermined Overhead Rate: Predetermined overhead rate is a measure used to allocate the estimated…
Q: Activity-Based Costing, Traditional Costing 1. The controller for Mitchell Supply Company has…
A: Activity based costing is one of the type of costing system, which shows that all indirect costs and…
Q: Fulcrum Industries manufactures dining chairs and tables. The following information is available in…
A: solution given Dining Chairs Tables…
Q: Tidwell Industries has the following overhead costs and cost drivers. Direct labor hours are…
A: Given, Estimated direct labor hours = 100,000 Traditional overhead application rate = Total…
Q: Deuter Int’l Business manufactures two products, Product L11 and Product L12. The company is…
A: In ABC costing, the overhead cost is allocated on the basis of cost driver
Q: Reynoso Corporation manufactures titanium and aluminum tennis racquets. Reynoso's total overhead…
A: Total machine hours = machine hours for Titanium + machine hours for Aluminium = 500 + 500 = 1,000…
Q: Crystal Pools estimates overhead will utilize 200,000 machine hours and cost $800,000. It takes 3…
A: Predetermined overhead rate = estimated overhead costs / estimated machine hours = $800,000 /…
Q: Boswell Company manufactures two products, Regular and Supreme. Boswell’s overhead costs consist of…
A: To determine: Overhead applied to Regular using traditional costing using direct labor hours is…
Q: Tidwell Industries has the following overhead costs and cost drivers. Direct labor hours are…
A: Compute the overhead application rate for ordering and receiving the orders:
Q: Company uses activity-based costing for its product Royale and Elegance. The total estimated annual…
A: Activity based costing is the method of allocation of overhead to the product or services. Under…
Q: Estimated Еxpected Activity Activity Cost Pool Activity Measure Machine related machine hours…
A: Overheads are considered as fixed and common expenses that should be allocated to the products on…
Q: Privott, Inc., manufactures and sells two products: Product 29 and Product NO. The company is…
A: The activity rate for labor is calculated by dividing the estimated cost by the expected activity.
Q: Zimmerman Company manufactures two products, Board 12 and Case 165. Zimmerman’s overhead costs…
A: Activity-Based Costing: Activity-based costing is a costing technique that identifies all the…
Q: Reynoso Corporation manufactures titanium and aluminum tennis racquets. Reynoso’s total overhead…
A: working note Inspection total cost is given -A $80000 Total Inspections-B 500 =350+150…
Q: Estimated Estimated Cost Drivers Activity Cost Overhead Street Mountain Pools…
A: Activity based costing: It is a method for allocating overhead cost to products based on consumption…
Q: IceeBee61 Manufacturers uses activity based costing model to compute product costs. During the…
A: Activity Rate = Estimated Overheads / Total Level of Activity Overhead Assigned = Activity Rate *…
Estimated costs for activity cost pools and other item(s) are as follows:
| Machining | $500000 |
| Assembling | 270000 |
| Advertising | 450000 |
| Inspecting and testing | 245000 |
Total estimated
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
- PR 18-4A Activity-Based Product Costing Obj. 4 Mello Manufacturing Company is a diversified manufacturer that manufactures three products (Alpha, Beta, and Omega) in a continuous production process. Senior management has asked the controller to conduct an activity-based costing study. The controller identified the amount of factory overhead required by the critical activities of the organization as follows: Activity Production Setup Materials handling Inspection Product engineering The activity bases identified for each activity are as follows: Activity Production Alpha Beta 3. Setup Materials handling Inspection Product engineering Total Omega Total Activity Base Machine hours Number of setups Number of parts The activity-base usage quantities and units produced for the three products were determined from corporate records and are as follows: Number of inspection hours Number of engineering hours Machine Hours 1,440 1,080 720 3,240 Number of Setups Activity Cost Pool $259,200 55,000…(1) calculate the overhead assigned rate (note their order from above): Overhead Cost Items Estimated Overhead Cost Driver Activity Levels Activity Rate Purchasing $70,000 ? ? ? Handling materials $33,350 ? ? ? Machine setups $70,500 ? ? ? Inspections $25,500 ? ? ? Utilities $45,000 ? ? ? (2) calculate the total order cost (again, note their order from above): Activity Cost Drivers Activity Levels Activity Rate Assigned Costs ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? Total Order Cost ?48. LO.1 & LO. 3–LO.5 (Activity analysis, ABC; pricing; cost drivers; decision making)Hurley Corporation has identifi ed the following overhead costs and cost drivers for the coming year:Overhead Item Cost DriverBudgeted CostBudgeted Activity LevelMachine setup Number of setups $ 20,000 200Inspection Number of inspections 130,000 6,500Material handling Number of material moves 80,000 8,000Engineering Engineering hours 50,000 1,000$280,000Th e following information was collected on three jobs that were completed dur-ing the year:Job 101 Job 102 Job 103Direct material $5,000 $12,000 $8,000Direct labor $2,000 $ 2,000 $4,000Units completed 100 50 200Number of setups 1 2 4Number of inspections 20 10 30Number of material moves 30 10 50Engineering hours 10 50 10Budgeted direct labor cost was $100,000, and budgeted direct material cost was $280,000.a. If the company uses activity-based costing, how much overhead cost should be assigned to Job 101?b. If the company uses activity-based…
- Activity Cost Pool Cost Driver EstimatedOverhead Use perProduct A Use perProduct B Machine Setups Setups $144,000 6,000 2,000 Assembly Number of Parts 71,000 25,000 46,000 Machine Maintenance Machine Hours 200,000 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.The following computer printout was generated, using regression, for use in estimating maintenance costs. Intercept 8300 X Variable 1 37 Multiple R 0.9500 R Square 0.9025 Activity variable machine hours An estimate of maintenance costs at an activity level of 100 machine hours would be:Problem 7-16 (Algo) Comparing Traditional and Activity-Based Product Margins [LO7-1, L07-3, LO7-4, LO7-5] Hi-Tek Manufacturing, Inc., makes two types of industrial component parts-the B300 and the T500. An absorption costing income statement for the most recent period is shown: Hi-Tek Manufacturing Inc. Income Statement $ 1,657,500 1,224,620 432,880 620,000 Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating loss $4 (187,120) Hi-Tek produced and sold 60,500 units of B3o0 at a price of $19 per unit and 12,700 units of T500 at a price of $40 per unit. The company's traditional cost system allocates manufacturing overhead to products using a plantwide overhead rate and direct labor dollars as the allocation base. Additional information relating to the company's two product lines is shown below: в300 T500 Total Direct materials $ 400,600 $ 120,400 $ 162,700 $ 42,000 563,300 162,400 498,920 Direct labor Manufacturing overhead Cost of goods sold $…
- Swifty Corporation, Inc.currently manufactures a wicket as its main product. The costs per unit are as follows: Direct materials and direct labor $10 Variable overhead 5 Fixed overhead 8 Total $23 The fixed overhead is an allocated common cost. How much is the relevant cost of the wicket? $23 $15 $35 $18Your Company has two products: A and B. The company uses activity-based costing. The estimated total cost and expected activity for each of the company's three activity cost pools are as follows: Estimated Expected Activity Activity Cost Pool Cost Product A Product B Total Machine related $17,600 700 300 1,000 MH Batch setup $32,600 600 200 800 Setups Other $52,500 900 500 1,400 DLH What is the activity rate under the activity-based costing system for Batch setups? Group of answer choices $54.33 $40.75 $40.75 per Setup $16.30 $16.30 per Setup $54.33 per SetupThe company is considering using a two-stage cost allocation system and wants to assess the effects on reported product profits. The company is considering using Engineering Hours and Users as the allocation base. Additional information follows. Toot! TiX Total Engineering hours 7,650 5,650 13,300 Users 9,500 17,100 26,600 Engineering – hour related administrative cost $ 114,380 User-related administrative cost $…
- 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 6Identify 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. Direct material cost per unit. b. Fees for using a patent of $500,000 plus $0.25 for each unit produced. c. Salary of quality control supervisor. d. Straight-line depreciation per unit on factory equipment. e. Total direct materials cost.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?
