Akos Inc. produces phones. One of its plants produces two versions of phones: a basic model and a premium model. At the beginning of this year, the following data were prepared for the plant: Basic Premium Model Model 20,000 10,000 $90 $200 $300,000 $300,000 2,500 500 4,000 28 Expected Quantity Selling Price Per Unit Total Prime Costs Machine Hours Number of requisitions Maintenance hours Number of setups 2,500 1,500 6,000 32
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- Larsen, Inc., produces two types of electronic parts and has provided the following data: There are four activities: machining, setting up, testing, and purchasing. Required: 1. Calculate the activity consumption ratios for each product. 2. Calculate the consumption ratios for the plantwide rate (direct labor hours). When compared with the activity ratios, what can you say about the relative accuracy of a plantwide rate? Which product is undercosted? 3. What if the machine hours were used for the plantwide rate? Would this remove the cost distortion of a plantwide rate?The following product Costs are available for Haworth Company on the production of chairs: direct materials, $15,500; direct labor, $22.000; manufacturing overhead, $16.500; selling expenses, $6,900; and administrative expenses, $15,200. What are the prime costs? What are the conversion costs? What is the total product cost? What is the total period cost? If 7,750 equivalent units are produced, what is the equivalent material cost per unit? If 22,000 equivalent units are produced, what is the equivalent conversion cost per unit?The following product costs are available for Stellis Company on the production of erasers: direct materials, $22,000; direct labor, $35,000; manufacturing overhead, $17,500; selling expenses, $17,600; and administrative expenses; $13,400. What are the prime costs? What are the conversion costs? What is the total product cost? What is the total period cost? If 13,750 equivalent units are produced, what is the equivalent material cost per unit? If 17,500 equivalent units are produced, what is the equivalent conversion cost per unit?
- SmokeCity, Inc., manufactures barbeque smokers. Based on past experience, SmokeCity has found that its total annual overhead costs can be represented by the following formula: Overhead cost = $520,475 + $1.49X, where X equals number of smokers. Last year, SmokeCity produced 19,100 smokers. Actual overhead costs for the year were as expected. Required: 1. What is the driver for the overhead activity? For questions 2-4, Enter the final answers rounded to the nearest dollar. 2. What is the total overhead cost incurred by SmokeCity last year? $fill in the blank 2 3. What is the total fixed overhead cost incurred by SmokeCity last year? $fill in the blank 3 4. What is the total variable overhead cost incurred by SmokeCity last year? $fill in the blank 4 For questions 5-7, round your answers to the nearest cent. Use those rounded figures in subsequent computations, if necessary. 5. What is the overhead cost per unit produced? $fill in the blank 5 per unit 6. What is the fixed overhead cost…Northern Defense manufactures radar systems. It has just completed the manufacture of its first newly designed system, RS-32. Manufacturing data for the RS-32 follow: (Click icon to view data) Requirement Calculate the total variable costs of producing 2, 4, and 8 units. Begin by calculating the total cumulative time in labor-hours. (Round the cumulative average time per unit to the nearest whole number.) Number of Cumulative average time Cumulative total time: units per unit: Labor-hours 2 2,635 4 2,240 8 1,904 Direct materials Direct manufacturing labor Variable manufacturing overhead Total variable costs Labor-hours Now calculate the total variable costs of producing 2, 4, and 8 units. Variable costs of producing 4 Units 2 Units 5,270 8,960 15,232 8 Units Data Table Direct material cost Direct manufacturing labor time for first unit Learning curve for manufacturing labor time per radar system Direct manufacturing labor cost Variable manufacturing overhead cost aUsing the formula for…The controller of Ferrence Company estimates the amount of materials handling overhead cost that should be allocated to the company's two products using the data that are given below: The total materials handling cost for the year is expected to be $16,486.40. If the materials handling cost is allocated on the basis of material moves, how much of the total materials handling cost should be allocated to the specialty windows? (Round off your answer to the nearest whole dollar.) Question 12 options: $3,266 $9,274 $8,243 $6,595
- Xie Company identified the following activities, costs, and activity drivers for this year. The company manufactures two types of go- karts: Deluxe and Basic. Activity Handling materials Inspecting product Processing purchase orders Paying suppliers Insuring the factory. Designing packaging Activity Required: Compute the activity rate for each activity, assuming the company uses activity-based costing. (Round activity rate answers to 2 decimal places.) Handling material Inspecting product Processing orders Paying suppliers Insuring factory Designing packaging Expected Costs $700,000 975,000 180,000 250,000 375,000 150,000 Expected Costs $ $ Expected Activity 100,000 parts 1,500 batches 700 orders 500 invoices 40,000 square feet 2 models. 700,000 975,000 180,000 250,000 375,000 150,000 2,630,000 Activity Driver 100,000 parts 1,500 batches 700 orders 500 invoices 40,000 square feet 2 models Activity RateUse the following information for questions 2-4. Compute It uses activity-based costing. Two of Compute It’s production activities are Kitting (assembling the raw materials needed for each computer in one kit) and boxing the completed products for shipment to customers. Assume that Compute It spends $960,000 per month on kitting and $32,000 per month on boxing. Compute It allocates the following: • Kitting costs based on the number of parts used in the computer • Boxing costs based on the cubic feet of space the computer requires Suppose Compute It estimates it will use 400,000 parts per month and ship products with a total volume of 6,400 cubic feet per month. Assume that each desktop computer requires 125 parts and has a volume of 2 cubic feet. Compute It contracts with its suppliers to pre-kit certain component parts before delivering them to Compute It. Assume this saves $210,000 of the kitting cost and reduces the total number of parts by 100,000 (because Compute It considers each…Use the following information for questions 2-4. Compute It uses activity-based costing. Two of Compute It’s production activities are kitting(assembling the raw materials needed for each computer in one kit) and boxing the completed products for shipment to customers. Assume that Compute It spends $960,000 per month on kitting and $32,000 per month on boxing. Compute It allocates the following: • Kitting costs based on the number of parts used in the computer • Boxing costs based on the cubic feet of space the computer requires Suppose Compute It estimates it will use 400,000 parts per month and ship products with a total volume of 6,400 cubic feet per month. Assume that each desktop computer requires 125 parts and has a volume of 2 cubic feet.Compute It contracts with its suppliers to pre-kit certain component parts before delivering them to Compute It. Assume this saves $210,000 of the kitting cost and reduces the total number of parts by 100,000 (because Compute It considers each…
- Use the following information for questions 2-4. Compute It uses activity-based costing. Two of Compute It’s production activities are kitting(assembling the raw materials needed for each computer in one kit) and boxing the completed products for shipment to customers. Assume that Compute It spends $960,000 per month on kitting and $32,000 per month on boxing. Compute it allocates the following: • Kitting costs based on the number of parts used in the computer • Boxing costs based on the cubic feet of space the computer requires Suppose Compute It estimates it will use 400,000 parts per month and ship products with a total volume of 6,400 cubic feet per month. What are the predetermined overhead allocation rates?Merone Company allocates materials handling cost to the company's two products using the below data: Modular Prefab Homes Barns Total expected units produced Total expected material moves Expected direct labor-hours per unit 6,700 670 9,700 270 870 370 The total materials handling cost for the year is expected to be $235,450. If the materials handling cost is allocated on the basis of material moves, the total materials handling cost allocated to the modular homes is closest to: (Round your intermediate calculations to 2 decimal places.) Multiple ChoiceMerone Company allocates materials handling cost to the company's two products using the below data: Modular Prefab Homes 6,200 620 820 Barns Total expected units produced Total expected material moves Expected direct labor-hours per unit 9,200 220 320 The total materials handling cost for the year is expected to be $321,120. If the materials handling cost is allocated on the basis of material moves, the total materials handling cost allocated to the modular homes is closest to: (Round your Intermedlate calculatlons to 2 declmal ploces.) Multple Cholce $237.019.80 S230,981.05 S164,265.00 S220.770.00 < Prev 9 of 10 92 F AQI 61 A E e here to search DELL