Required: 1. Use activity-based costing to determine a unit cost for each produc
Q: Production Data-Basketballs Work in process units, July 1 Units started into production Work in…
A: Weighted average method: In the weighted-average method of process costing, the average cost of the…
Q: the variable factory overhead controllable variance is a. $165,014.59 unfavorable b. $165,014.59…
A: Given,Standard hours allowed per unit = 4.9Actual production = 940 units
Q: Required information [The following information applies to the questions displayed below.] The…
A: 1. Prime Cost -Prime cost are those cost which directly related to generate the product. It includes…
Q: Garcia Company has 11.600 units of its product that were produced at a cost of $174,000. The units…
A: In decision-making questions of Scrap or Rework analysis, the decision will be made on the basis of…
Q: Prepare the operating activities section of the company's statement of cash flows for the year using…
A: SolutionThe cashflow statement is a financial statement which shows the inflow and outflow of cash…
Q: Pharoah Company applies manufacturing overhead based on direct labor hours. Information concerning…
A: Predetermined overhead rate is estimated overhead amount which is incurred during period. The rate…
Q: Fanning Manufacturing Company began operations on January 1. During the year, it started and…
A: Raw materials purchased and used$3,200Wages of production workers$3,530Depreciation on manufacturing…
Q: Required information [The following information applies to the questions displayed below.] Hughes…
A: Cost of goods sold = Cost of goods sold for cash + Cost of goods sold on account - goods returned 1.…
Q: The following financial information is for Oriole Company. Oriole Company Balance Sheets December 31…
A: Ratio Analysis -The ratio is the technique used by the prospective investor or an individual or…
Q: Assume a merchandising company uses the high-low method to separate any mixed costs into their…
A: VARIABLE COST Variable Cost is a cost that varies with the level of output.variable costs include…
Q: ASSETS Current assets: Cash ORANGE INCORPORATED CONSOLIDATED BALANCE SHEET September 28, 2019…
A: Current Ratio -Current Ratio Represent the ability of the company to repay its current obligations.…
Q: In the period 2011, Lott Inc. performed services for $120,000 and billed its customers. The company…
A: Income Statement -Income Statement includes Revenue earned and Expenses incurred for the period.…
Q: Common stock value-Variable growth Personal Finance Problem Home Place Hotels, Inc., is entering…
A: Dividend is the part or share of profits which is being distributed to shareholders. Under dividend…
Q: Presented here are summarized data from the balance sheets and income statements of Wiper Inc.:…
A: Ratio Analysis -The ratio is the technique used by the prospective investor or an individual or…
Q: Shanghai Company sells glasses, fine china, and everyday dinnerware. It uses activity- based costing…
A: Handling activity cost refers to the expenses incurred in managing and processing various activities…
Q: The manufacturing costs of Mocha Industries for three months of the year are as follows: Total Cost…
A: The high-low method is used to differentiate the mixed cost. The mixed cost is the combination of…
Q: Question 2 (L03) Yates Corp. wants to develop a cost equation for its administrative costs. The…
A: Lets understand the basics.In high low method, total costs are separeted in fixed costs and variable…
Q: Fixed asset turnover ratio Select financial statement data for two recent years for Davenport…
A: Ratio analysis means where different ratio of various years of years companies has been compared and…
Q: TRUE or FALSE: Incurred but not reported (IBNR) is a type of reserve account used in the insurance…
A: IBNR is most usually associated with late reporting due to red tape and processing delays. Companies…
Q: A partnership is currently holding $400,000 in assets and $234,000 in liabilities. The partnership…
A: Total Assets = $ 400,000Total Liabilities = $ 234,000Liquidation Expenses = $ 20,000Net Assets after…
Q: Gig Harbor Boating is the wholesale distributor of a small recreational catamaran sailboat.…
A: Gross margin = sales - cost of goods sold Net operating Income = Gross Margin - selling and…
Q: Required: a. What amount is Jarvie required to include in taxable income from these purchases? b.…
A: As per income tax law, if price at which employees purchased any goods from employer company, i.e.…
Q: The following data are given for Taylor Company: Budgeted production Actual production Materials:…
A: Direct labor variances:The difference between the actual labor cost in production and the standard…
Q: The ledger of Cullumber Limited at October 31, 2024, contains the following summary data: Cash…
A: The question is based on the concept of Financial Accounting.Net Profit can be calculated by…
Q: Lorenzo Company applies overhead to jobs on the basis of direct materials cost. At year-end, the…
A: The overhead rate, also known as the overhead allocation rate or burden rate, is a predetermined…
Q: Radar Company sells bikes for $450 each. The company currently sells 4,450 bikes per year and could…
A: Choosing whether to accept distinctive customer orders falls under the category of special order…
Q: Sharp Company manufactures a product for which the following standards have been set: Standard…
A: Variances have occurred when there is any difference between the actual results and budgeted…
Q: Allen Company has three departments - Lawn, Bush, and Plowing. Allen Company uses ABC for the…
A: The question is based on the concept of Cost Accounting.In order to calculate the total cost…
Q: Richie Manufacturing had underapplied overhead of $42,000 in 20X0. Before adjusting for overappied…
A: COGS typically includes direct expenses such as those labor, raw materials, and manufacturing…
Q: Ruiz Company provides the following budgeted sales for the next four months. The company wants to…
A: Sales Budget and Production budget :Sales budget is prepared to show the no. of units to be sold in…
Q: Lister Company currently gives its employees their pay at the end of each week. Lister’s weekly…
A: AccrualsIt is outstanding Liabilities for services received for which payment has yet to be made.…
Q: Large Ltd. purchased 70% of Small Company on January 1, Year 6, for $630,000, when the statement of…
A: Investment in Associates and Joint venture and SubsidiaryEquity Accounting method - This method is…
Q: What is the purpose of accounting theory, and how does it contribute to the development of…
A: Accounting theory refers to the systematic study and analysis of the principles, concepts, and…
Q: Which of the following errors, each considered individually, would cause the trial balance totals to…
A: Trial Balance -Trial Balance is a summary of all the ledgers posted as per the format of assets,…
Q: As companies grow their data storage needs grow more complex and many small businesses soon grow to…
A: Microsoft access is time-worn relational database management system.
Q: Anchor Corporation has provided the following information for its most recent year of operation:…
A: Income Statement -The income statement includes revenue earned and expenses incurred during the…
Q: The following information was abstracted from the accounts of the General Fund of the City of Rome…
A: In this problem, we are asked to prepare the journal entries to record the transactions for the…
Q: If the materials handling cost is allocated on the basis of material moves, the total materials…
A: Indirect costs or overheads costs in the manufacturing activity will be allocated to products or…
Q: The following events apply to Paradise Vacations's first year of operations: 1. Acquired $32,000…
A: Hi studentSince there are multiple subparts, we will answer only first three subparts.Journal…
Q: Solstice Company determines on October 1 that it cannot collect $57,000 of its accounts receivable…
A: Under the direct method, the bad debt expense is recorded as and when it is incurred.The bad debt…
Q: Sandhill Windows manufactures and sells custom storm windows for porches. Sandhill also provides…
A: Five step model includes following steps Identification of contract.Identification of performance…
Q: Adams Company is a retail company that specializes in selling outdoor camping equipment. The company…
A: Budgeting -Budgeting is the process of estimating future operations based on past performance. % are…
Q: Ganda Ko acquired all the assets and assumed all the liabilities of Ganda Korin for a total…
A: To determine the total effect of the acquisition on the retained earnings and contributed capital of…
Q: 3) XL Ltd., has three production departments and four service departments. The expenses for these…
A: Costs incurred in Service Department are apportioned to the production department using the suitable…
Q: As a newly hired management accountant, you have been asked to prepare a profit plan for the company…
A: Break even point is the optimum point of No profit no loss as at this point the firm is earning a…
Q: Sandhill Company's ledger at the end of the current year shows Accounts Receivable of $147,000. (a)…
A: Bad debt expense is the anticipated amount of accounts receivable that will not be paid by…
Q: Toy World Products is considering producing toy action figures and sandbox toys. The products…
A: The accounting rate of return is used by corporate entities to calculate the yearly percentage rate…
Q: 1. On December 31, 2021, customers owed Style Company $25,000 for services provided in 2021. During…
A: Cash basis : In the cash basis, revenue is recognized when cash is received and expenses are…
Q: Required: 1. Compute the predetermined overhead rate. 2. During the year, Mr. Wilkes brought in his…
A: The predetermined overhead rate is used to allocate the overheads to the jobs or to the products. It…
Q: Sandhill Company applies manufacturing overhead to jobs on the basis of machine hours used. Overhead…
A: Under and Overapplied Overhead -Manufacturing Overheads are considered to be underapplied when the…
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
Please do not give solution in image format thanku
Step by step
Solved in 4 steps
- Medical Tape makes two products: Generic and Label. It estimates it will produce 423,694 units of Generic and 652,200 of Label, and the overhead for each of its cost pools is as follows: It has also estimated the activities for each cost driver as follows: How much is the overhead allocated to each unit of Generic and Label?Geneva, Inc., makes two products, X and Y, that require allocation of indirect manufacturing costs. The following data were compiled by the accountants before making any allocations: The total cost of purchasing and receiving parts used in manufacturing is 60,000. The company uses a job-costing system with a single indirect cost rate. Under this system, allocated costs were 48,000 and 12,000 for X and Y, respectively. If an activity-based system is used, what would be the allocated costs for each product?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?
- Rocks Industries has two products. They manufactured 12,539 units of product A and 8.254 units of product B. The data are: Â What is the activity rate for each cost pool?Rex Industries has two products. They manufactured 12,539 units of product A and 8.254 units of product B. The data are: What is the activity rate for each cost pool?Hakara Company has been using direct labor costs as the basis for assigning overhead to its many products. Under this allocation system, product A has been assigned overhead of $24.82 per unit, while product B has been assigned $13.58 per unit. Management feels that an ABC system will provide a more accurate allocation of the overhead costs and has collected the following cost pool and cost driver information: Cost Pools Activity Costs Cost Drivers Activity Driver Consumption Machine setup $ 158,000 Setup hours 2,000 Materials handling 112,000 Pounds of materials 16,000 Electric power 25,000 Kilowatt-hours 25,000 The following cost information pertains to the production of A and B, just two of Hakara's many products: A B Number of units produced 5,000 10,000 Direct materials cost $ 32,000 $ 41,000 Direct labor cost $ 41,000 $ 38,000 Number of setup hours 100 200 Pounds of materials used 1,000 1,000 Kilowatt-hours 2,000 4,000 Required: 1. Use…
- Hakara Company has been using direct labor costs as the basis for assigning overhead to its many products. Under this allocation system, product A has been assigned overhead of $26.87 per unit, while product B has been assigned $7.62 per unit. Management feels that an ABC system will provide a more accurate allocation of the overhead costs and has collected the following cost pool and cost driver information: Cost Pools Activity Costs $ 415,000 120,000 44,000 The following cost information pertains to the production of A and B, just two of Hakara's many products: Machine setup Materials handling Electric power Number of units produced Direct materials cost Direct labor cost Number of setup hours Pounds of materials used Kilowatt-hours Product A Product B A 5,000 $ 22,000 $ 39,000 Cost per Unit Cost Drivers Setup hours Pounds of materials Kilowatt-hours 200 2,000 4,000 B 20,000 $ 26,000 $ 37,000 Activity Driver Consumption 5,000 15,000 22,000 200 2,000 4,000 Required: 1. Use…Hakara Company has been using direct labor costs as the basis for assigning overhead to its many products. Under this allocation system, product A has been assigned overhead of $31.58 per unit, while product B has been assigned $8.69 per unit. Management feels that an ABC system will provide a more accurate allocation of the overhead costs and has collected the following cost pool and cost driver information: Activity Costs $ 198,000 Activity Driver Consumption 2,000 21,000 168,000 40,000 40,000 The following cost information pertains to the production of A and B, just two of Hakara's many products: Cost Pools Machine setup Materials handling Electric power Number of units produced Direct materials cost Direct labor cost. Number of setup hours Pounds of materials used Kilowatt-hours Product A Product B A 4,000 $ 31,000 $ 33,000 Cost per Unit 200 1,000 4,000 Cost Drivers Setup hours Pounds of materials Kilowatt-hours Required: 1. Use activity-based costing to determine a unit cost for…Hakara Company has been using direct labor costs as the basis for assigning overhead to its many products. Under this allocation system, product A has been assigned overhead of $35.29 per unit, while product B has been assigned $8.25 per unit. Management feels that an ABC system will provide a more accurate allocation of the overhead costs and has collected the following cost pool and cost driver information: Cost Pools Activity Costs Cost Drivers Activity Driver Consumption Machine setup $ 261,000 Setup hours 3,000 Materials handling 153,000 Pounds of materials 17,000 Electric power 38,000 Kilowatt-hours 38,000 The following cost information pertains to the production of A and B, just two of Hakara's many products: A B Number of units produced 4,000 20,000 Direct materials cost $ 37,000 $ 27,000 Direct labor cost $ 41,000 $ 40,000 Number of setup hours 200 200 Pounds of materials used 1,000…
- Hakara Company has been using direct labor costs as the basis for assigning overhead to its many products. Under this allocation system, product A has been assigned overhead of $23.18 per unit, while product B has been assigned $9.84 per unit. Management feels that an ABC system will provide a more accurate allocation of the overhead costs and has collected the following cost pool and cost driver information: Cost Pools Activity Costs. $426,000 Machine setup Materials handling 171,000 54,000 Electric power The following cost information pertains to the production of A and B, just two of Hakara's many products: Number of units produced Direct materials cost Direct labor cost Number of setup hours Pounds of materials used Kilowatt-hours Product A Product B A 5,000 $ 37,000 $ 24,000 100 1,000 2,000 X Answer is not complete. Cost per Unit $ 18.22 X Cost Drivers Setup hours Pounds of materials. Kilowatt-hours Required: 1. Use activity-based costing to determine a unit cost for each product.…Pharoah Co. has identified an activity cost pool to which it has allocated estimated overhead of $10212000. It has determined the expected use of cost drivers for that activity to be 851000 inspections. Widgets require 217000 inspections, Gadgets 167000 inspections, and Targets 467000 inspections. How much is the overhead assigned to each product? O Widgets $3404000, Gadgets $3404000, Targets $3404000 O Widgets $217000, Gadgets $167000, Targets $467000 O Widgets $3404000, Gadgets $1702000, Targets $5106000 O Widgets $2604000, Gadgets $2004000, Targets $5604000The current cost accounting system charges overhead to products based on machine-hours. What unit product costs will be reported for the two products if the current cost system continues to be used? (Round intermediate calculations and "Per unit cost" answers to 2 decimal places.) 308 510 Total cost Per unit cost A consulting firm has recommended using an activity-based costing system, with the activities based on the cost pools identified by the cost accountant. What are the cost driver rates for the four cost pools identified by the cost accountant? (Round your answers to 2 decimal places.) Incoming inspection % of material dollars Production per machine-hour Machine setup per setup Shipping per unit What unit product costs will be reported for the two products if the ABC system suggested by the cost accountant’s classification of…