7:28 W Woo< 1/6 >口E19-15Learning Objective 1Professional, total OH $477,500Koehler (see Exercise E19-15) makes handheld calculators in two models-basic and professional-and wants to refine its costing system by allocatingoverhead using departmental rates. The estimated $721,000 of manufacturingoverhead has been divided into two cost pools: Assembly Department andPackaging Department. The following data have been compiled:Overhead costsMachine hours:Basic ModelTotalProfessionalModelCAssemblyDepartment$ 456,500185,000 MHr230,000 MHr415,000 MHr1069/1480PackagingDepartment* * * * || 63%QAAWord>Bit$ 264,50045,000 MHr55,000 MHr100,000 MHrTotal$ 721,000230,000MHr285,000MHr515,000b° ||| 0 <:× 7:28 W W OK OK< 1/6 >□E19-15Direct labor hours:Basic ModelProfessionalModelTotal20,000 DLHr105,125 DLHr125,125 DLHrCLearning Objectives 2, 3QAA1069/148050,000 DLHr 70,000 DLHr280,625 DLHrWordBit49 63%Ę330,625 DLHrCompute the predetermined overhead allocation rates using machine hours asthe allocation base for the Assembly Department and direct labor hours for thePackaging Department. How much overhead is allocated to the basic model? Tothe professional model? Round allocation rates to two decimal places andallocated costs to whole dollars.Note: Exercises E19-15 and E19-16 must be completed before attemptingExercise E19-17.385,750DLHrE19-17 Computing and using activity-based costing overhead allocation rates455,750DLHrb° ||| 0 <:×

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Description: 7:28 W Woo 口E19-15Learning Objective 1Professional, total OH $477,500Koehler (see Exercise E19-15) makes handheld calculators in two models-basic and professional-and wants to refine its costing system by allocatingoverhead using departmental

The departmental overhead rate is calculated as departmental overhead Costs divided by estimated…

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Koehler (see Exercise E19-15 ) makes handheld calculators in two models- basic and professional-and wants to refine its costing system by allocating overhead using departmental rates. The estimated $721,000 of manufacturing overhead has been divided into two cost pools: Assembly Department and Packaging Department. The following data have been compiled: Overhead costs Machine hours: Basic Model Professional Model Total Assembly Department $ 456,500 185,000 MHr 230,000 MHr 415,000 MHr Packaging Department $264,500 45,000 MHr 55,000 MHr 100,000 MHr Total $ 721,000 230,000 MHr 285,000 MHr 515,000

Koehler (see Exercise E19-15 ) makes handheld calculators in two models- basic and professional-and wants to refine its costing system by allocating overhead using departmental rates. The estimated $721,000 of manufacturing overhead has been divided into two cost pools: Assembly Department and Packaging Department. The following data have been compiled: Overhead costs Machine hours: Basic Model Professional Model Total Assembly Department $ 456,500 185,000 MHr 230,000 MHr 415,000 MHr Packaging Department $264,500 45,000 MHr 55,000 MHr 100,000 MHr Total $ 721,000 230,000 MHr 285,000 MHr 515,000

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 5PB: Wrappers Tape makes two products: Simple and Removable. It estimates it will produce 369,991 units...

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Assume a service company has implemented an activity-based costing system with five activities as shown below: Activity Cost Pool (Activity Measure) Customer deliveries (Number of deliveries) Manual order processing (Number of manual orders) Electronic order processing (Number of electronic orders) Line item picking (Number of line items picked) Other organization-sustaining costs (None) Total Cost Total Activity $ 400,000 $ 280,000 $ 150,000 $ 450,000 $ 300,000 8,000 deliveries 5,000 manual orders 15,000 electronic orders 375,000 line items The company serves numerous customers, two of which include Hospital A and Hospital B. The activity demands pertaining to these two customers are as follows: Activity Hospital A Hospital B Activity Measure Number of deliveries Number of manual orders Number of electronic orders Number of line items picked 8. 25 30 15 0. 115 250 How much total activity cost should be assigned to Hospital A for internal management purposes? Multiple Choice $785 <…
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Required information [The following information applies to the questions displayed below.] Adria Company recently implemented an activity-based costing system. At the beginning of the year, management made the following estimates of cost and activity in the company's five activity cost pools: Expected Activity Overhead Expected Activity 6,500 DLHS 2,400 orders 700 receipts 1,400 relays 41,000 MHs Activity Cost Pool Labor-related Purchase orders Measure Cost $ 58,500 $ 12,000 $ 11, 200 $ 14,000 $369, 000 Direct labor-hours Material receipts Relay assembly General factory Number of orders Number of receipts Number of relays Machine-hours Required: 1. Compute the activity rate for each of the activity cost pools. Activity Cost Pool Activity Rate Labor-related per DLH Purchase orders per order Material receipts per receipt Relay assembly per relay General factory per MH
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Problem 2 Milky Corporation has provided the following data from its activity-based costing accounting system: Activity Cost Pools Designing products Setting up batches Assembling products Total Cost P1,372,448 P33,300 P126,160 Total Activity 7,798 product design hours 740 batch set-ups 6,640 assembly hours The activity rate for the "designing products" activity cost pool is answer must be in nearest peso A The activity rate for the "setting up batches" activity cost pool is answer should be in nearest peso A The activity rate for the "assembling products" activity cost pool is answer must be in nearest peso A
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2 nts eBook eferences 2. The company is considering replacing its traditional costing system with an activity-based absorption costing system that would have the following three activity cost pools: Estimated Overhead Cost Activity Cost Pools (and Activity Measures) Supporting direct labor (direct labor-hours) Batch setups (setups) $ 385,000 Safety testing (tests) 132,000 69,000 Total manufacturing overhead cost $ 586,000 Determine the unit product costs of the Deluxe and Standard products under the activity-based absorption costing system. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Unit product cost Deluxe Deluxe 7,000 200 30 Standard Expected Activity Standard 70,000 Determine the unit product costs of the Deluxe and Standard products under the activity-based absorption costing system. (Round your intermediate calculations and final answers to 2 decimal places.) 100 70 Total 77,000 300 100
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ABC Company makes products A and B. It uses an ABC system with two cost pools. Cost Pool "Labor- related" "Production setups" $15,000 $17,000 $20,000 Total cost in cost pool $30,000 $12,000 12 $18,000 not enough information Compute allocated fixed costs for product A. Activity level (# cost driver units) 712 A B 4,000 DL$ DL$ 2,000 Total 6,000 DL$ 600 600 1,200 setups setups setups