Direct materials cost $ 80.00 Direct labor cost 20.00 Activity-based casts allocated Total manufacturing product cost The activities required to build the component follow: Activity Allocation Base Cost Allocated to Each Unit Start slation Number of raw component chassis $ 1.50 4 $ 6.00 Dip insertion Manual insertion Number of dip insertions 0.30 9.60 Number of manual insertions 10 0.50 Wave solder Number of components soldered 1.90 7.60 Backload Number of backload nserticns 4.20 %3D Test Number of testing haurs 0.43 90.00 Defect analysis Total activity-hased costs Number of defect analysis hours 0.15 12.00

Direct materials cost $ 80.00 Direct labor cost 20.00 Activity-based casts allocated Total manufacturing product cost The activities required to build the component follow: Activity Allocation Base Cost Allocated to Each Unit Start slation Number of raw component chassis $ 1.50 4 $ 6.00 Dip insertion Manual insertion Number of dip insertions 0.30 9.60 Number of manual insertions 10 0.50 Wave solder Number of components soldered 1.90 7.60 Backload Number of backload nserticns 4.20 %3D Test Number of testing haurs 0.43 90.00 Defect analysis Total activity-hased costs Number of defect analysis hours 0.15 12.00

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter6: Process Costing

Section: Chapter Questions

Problem 14E: Lacy, Inc., produces a subassembly used in the production of hydraulic cylinders. The subassemblies...

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Refer to Cornerstone Exercise 7.3 and solve for the allocated costs to Fabricating and Assembly using the direct method of support department cost allocation. The Fabricating Department overhead rate is based on normal activity of 82,000 machine hours. The Assembly Department overhead rate is based on normal activity of 160,000 direct labor hours. Job 316 required six machine hours in Fabricating and four direct labor hours in Assembly. Total direct materials cost 120, and total direct labor cost was 80. Required: 1. Calculate the overhead rate for Fabricating based on machine hours and the overhead rate for Assembly based on direct labor hours. (Round overhead rates to the nearest cent.) 2. Using the overhead rates calculated in Requirement 1, calculate the cost of Job 316. 3. What if Job 316 had required one machine hour in Fabricating and four direct labor hours in Assembly? Direct labor and direct materials costs remained the same. Calculate the new cost of Job 316.
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Ice Cool produces two different models of air conditioners. The activities, costs, and cost drivers associated with the production processes follow. Budgeted Budgeted Cost Activity Cost Activity Driver Process Activity Usage Machine hours (MH) Setups $ Assembly Machining 7,800 311,400 20,000 Setups 120 331,400 Finishing Inspecting Inspections 840 226,000 $ 134,000 Support Purchasing Purchase orders 510 Additional production information concerning its two models follows. Units and Activities Units produced Machine hours Setups Inspections Model X Model Z 1,600 2,200 40 3,200 5,600 80 500 340 340 170 Purchase orders Per Unit Model X Model Z Selling price per unit Direct materials cost $ 410 $ 390 150 115 per unit Direct labor cost per unit 125 150 1. Compute the activity rate for each activity using activity-based costing. 2. Using activity-based costing, compute the overhead cost per unit for each model. 3. Compute the total product cost per unit for each model. 4. For each model,…
Fields Company has two manufacturing departments, forming and painting. The company uses the weighted average method and it reports the following unit data for the Forming department. Units completed in the forming department are transferred to the painting department. Beginning work in process inventory Units started this period Completed and transferred out Ending work in process inventory Production cost information for the forming department follows. Beginning work in process Direct materials Units 34,500 490,000 494,500 30,000 Conversion Costs added this period Direct materials Conversion Total costs to account for $ 56,200 22,900 1,800, 200 1, 179,000 Direct Materials Percent Complete 80% 85% $79,100 2,979,200 $ 3,058, 300 Conversion Percent Complete 20% 35%
Title Brahtz Company uses an activity-based costing system. It has the following manufacturing activity ar Description Brahtz Company uses an activity-based costing system. It has the following manufacturing activity areas, related cost drivers and cost allocation rates:ActivityCost DriverCost Allocation RateMachine setupNumber of setups$25.00Materials handlingNumber of parts0.25MachiningMachine hours13.00AssemblyDirect labor hours22.00InspectionNumber of finished units7.00During the month, 100 units were produced, with no defects, requiring three setups. Each unit consisted of 17 parts, 3 direct labor hours and 2.5 machine hours. Direct materials cost $50 per finished unit.What is the total manufacturing cost for inspections?$-0-$700$90$7
Assume Sherwin-Williams Company, a large paint manufacturer, has determined the following activity cost pools and cost driver levels for the latest period= Activity Cost Pool Activity Cost Activity Cost Driver Machine setup $900,000 2,500 setup hours Material handling 820,000 4,000 material moves Machine operation 400,000 20,000 machine hours The following data are for the production of single batches of two products, Mirlite and Subdue: Mirlite Subdue 60,000 25,000 400 250 800 250 Gallons produced Direct labor hours Machine hours Direct labor cost Direct materials cost Setup hours Material moves $10,000 $7,500 $360,000 $150,000 Direct materials Direct labor Determine the batch and unit costs per gallon of Mirlite and Subdue using ABC. Round cost per gallon to two decimal places. Product Costs $ 15 60 Manufacturing overhead: Machine setups Material handling Mirlite 12 35 0 x $ 0 x 0 x 0 x Subdue 0 x 0x 0x 0x
[The following information applies to the questions displayed below.) The first production department of Stone Incorporated reports the following for April. Direct Materials Conversion Percent Units Complete Percent Complete 35% Beginning work in process inventory Units started this period. 76,000 65% 402,000 Completed and transferred out 350,000 Ending work in process inventory 98,000 85% 35% Exercise 20-9 (Algo) Weighted average: Cost per equivalent unit; costs assigned to output and inventory LO P1 The production department had the cost information below. Beginning work in process inventory Direct materials 5.180,444 45,559 Conversion $ 226,003 Costs added this period, Direct materials Conversion 1,278,951 845,186 Total costs to account for 2.124,137 $2,350,140 a. Compute cost per equivalent unit for both direct materials and conversion. (Round "Cost per EUP" to 2 decimal places.) b. Using the weighted average method, assign April's costs to the department's output-specifically,…
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PHYSICAL FLOW, EQUIVALENT UNITS, UNIT COSTS, NOBEGINNING WIP INVENTORY, ACTIVITY-BASED COSTINGMizukawa, Inc., produces a subassembly used in the production of hydraulic cylinders.The subassemblies are produced in three departments: plate cutting, rod cutting, andwelding. Overhead is applied using the following drivers and activity rates:Driver Rate Actual Usage (by Plate Cutting)Direct labor cost 150% of direct labor cost $366,000Inspection hours $20 per hour 3,725 hoursPurchase orders $500 per order 400 ordersOther data for the plate cutting department are as follows:Beginning work in process —Units started 370,000Direct materials cost $1,850,000Units, ending work in process(100% materials; 80% conversion) 20,000Required:1. Prepare a physical flow schedule.2. Calculate equivalent units of production for:a. Direct materialsb. Conversion costs3. Calculate unit costs for:a. Direct materialsb. Conversion costsc. Total manufacturing4. Provide the following information:a. The total cost of…
Please refer to the pictures for parts A and B. Part C is below: Cost assignment—Weighted average EUP Cost per EUP Total cost Completed and transferred out Direct materials Conversion Total Completed and transferred out Ending work in process Direct materials Conversion Total ending work in process Total costs accounted for HI-T Company.
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Activity Levels and Cost Drivers Shroeder Machine Shop has the following activities:a. Machine operationb. Machine setupc. Production schedulingd. Materials receivinge. Research and developmentf. Machine maintenanceg. Product designh. Parts administrationi. Final inspection of a sample of productsj. Materials handlingRequired1. Classify each of the activities as a unit-level, batch-level, product-level, or facility-level activity.2. Identify a potential cost driver for each activity in requirement 1.