Ravelo Corporation has provided the following data from its activity-based costing system: Estimated Overhead Activity Cost Pools Assembly Processing orders Inspection Expected Activity $507,520 48,500 machine-hours $ 58,763 1,550 orders $ 82, 089 1,560 inspection-hours Cost Data concerning the company's product L19B appear below. Annual unit production and sales 520 Annual machine-hours 1,080 Annual number of orders 160 Annual inspection hours 110 $ 46.74 per unit $ 19.45 per unit Direct materials cost Direct labor cost According to the activity-based costing system, the unit product cost of product L19B Is closest to: (Round your Intermedlate calculetions to 2 decimal pleces.) Multiple Choice $6.19 per unit $107.46 per unit $10.71 per unit $67.82 per unit

Ravelo Corporation has provided the following data from its activity-based costing system: Estimated Overhead Activity Cost Pools Assembly Processing orders Inspection Expected Activity $507,520 48,500 machine-hours $ 58,763 1,550 orders $ 82, 089 1,560 inspection-hours Cost Data concerning the company's product L19B appear below. Annual unit production and sales 520 Annual machine-hours 1,080 Annual number of orders 160 Annual inspection hours 110 $ 46.74 per unit $ 19.45 per unit Direct materials cost Direct labor cost According to the activity-based costing system, the unit product cost of product L19B Is closest to: (Round your Intermedlate calculetions to 2 decimal pleces.) Multiple Choice $6.19 per unit $107.46 per unit $10.71 per unit $67.82 per unit

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 13E: Wyandotte Company provided the following information for the last calendar year: During the year,...

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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?
Davis Co. uses backflush costing to account for its manufacturing costs. The trigger points are the purchase of materials, the completion of goods, and the sale of goods. Prepare journal entries to account for the following: a. Purchased raw materials, on account, 70,000. b. Requisitioned raw materials to production, 70,000. c. Distributed direct labor costs, 15,000. d. Factory overhead costs incurred, 45,000. (Use Various Credits for the account in the credit part of the entry.) e. Completed all of the production started. f. Sold the completed production for 195,000, on account. (Hint: Use a single account for raw materials and work in process.)
Kenkel, Ltd. uses backflush costing to account for its manufacturing costs. The trigger points are the purchase of materials, the completion of goods, and the sale of goods. Prepare journal entries to account for the following: a. Purchased raw materials, on account, 80,000. b. Requisitioned raw materials to production, 80,000. c. Distributed direct labor costs, 10,000. d. Factory overhead costs incurred, 60,000. (Use Various Credits for the account in the credit part of the entry.) e. Completed all of the production started. f. Sold the completed production for 225,000, on account.
Wyandotte Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 256,900, direct labor cost was 176,000, and overhead cost was 308,400. There were 40,000 units produced. Required: 1. Calculate the total cost of direct materials used in production. 2. Calculate the cost of goods manufactured. Calculate the unit manufacturing cost. 3. Of the unit manufacturing cost calculated in Requirement 2, 6.62 is direct materials and 7.71 is overhead. What is the prime cost per unit? Conversion cost per unit?
The following product costs are available for Kellee Company on the production of eyeglass frames: direct materials, $32,125; direct labor, $23.50; manufacturing overhead, applied at 225% of direct labor cost; selling expenses, $22,225; and administrative expenses, $31,125. The direct labor hours worked for the month are 3,200 hours. A. What are the prime costs? B. What are the conversion costs? C. What is the total product cost? D. What is the total period cost? E. If 6.425 equivalent units are produced, what is the equivalent material cost per unit? F. What is the equivalent conversion cost per unit?
Patterson Company produces wafers for integrated circuits. Data for the most recent year are provided: aCalculated using number of dies as the single unit-level driver. bCalculated by multiplying the consumption ratio of each product by the cost of each activity. Required: 1. Using the five most expensive activities, calculate the overhead cost assigned to each product. Assume that the costs of the other activities are assigned in proportion to the cost of the five activities. 2. Calculate the error relative to the fully specified ABC product cost and comment on the outcome. 3. What if activities 1, 2, 5, and 8 each had a cost of 650,000 and the remaining activities had a cost of 50,000? Calculate the cost assigned to Wafer A by a fully specified ABC system and then by an approximately relevant ABC approach. Comment on the implications for the approximately relevant approach.
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?
Multiple Choice $107.46 per unit $110.71 per unit $66.19 per unit $67.82 per unit
Paparo Corporation has provided the following data from its activity - based costing system: [[Activity Cost Pool, Total Cost, Total Activity], [Assembly, 833, 000, 49,000 machine - hours], [Processing orders, 69, 120, 1,800 orders], [Inspection, 111, 505, 1, 450 inspection - hours]] Data concerning the company's product Q79Y appear below: Annual unit production and sales Annual machine - hours Annual number of orders Annual inspection hours Direct materials cost Direct labor cost 600 1,150 125 3044.00 per unit 41.35 per unit cording to the activity - based costing system, the average cost of product Q79Y is closest Multiple Choice129.78 per unit 85.35 per unit13230 per unit 140.75 per unit
Ravelo Corporation has provided the following data from its activity-based costing system: Activity Cost Pools Assembly Processing orders Inspection Estimated Overhead Cost $ 517,520 $ 63,763 $ 87,089 Expected Activity 53,500 machine-hours 2,050 orders. 2,060 inspection-hours Data concerning the company's product L19B appear below: Annual unit production and sales Annual machine-hours Annual number of orders. Annual inspection hours Direct materials cost Direct labor cost 620 1,180 260 210 $56.74 per unit $29.45 per unit According to the activity-based costing system, the unit product cost of product L19B is closest to: (Round your intermediate calculations to 2 decimal places.) Im
Paparo Corporation has provided the following data from its activity-based costing system: Activity Cost Pool Total Cost $ 888,300 Assembly Processing orders $ 60,560 Inspection $ 101,572 Data concerning the company's product Q79Y appear below: Annual unit production and sales Annual machine-hours Annual number of orders Annual inspection hours Direct materials cost Direct labor cost Multiple Choice Total Activity 54,000 machine-hours 1,600 orders: 1,340 inspection-hours O $144.43 per unit 600 1,040 70 45 According to the activity-based costing system, the average cost of product Q79Y is closest to: (Round your intermediate calculations to 2 decimal places.) $49.00 per unit $ 41.13 per unit
Paparo Corporation has provided the following data from its activity-based costing system: Total Cost $1,005,000 Activity Cost Pool Assembly Processing orders Inspection Data concerning the company's product Q79Y appear below: Annual unit production and sales Annual machine-hours Annual number of orders Annual inspection hours Direct materials cost Direct labor cost Multiple Choice $168.52 per unit Total Activity 60,000 machine-hours 2,200 orders $ 83,930 $ 106,960 1,400 inspection-hours According to the activity-based costing system, the average cost of product Q79Y is closest to: $96.25 per unit $131.30 per unit O $151.15 per unit 350 1,100 100 40 $55.00 per unit $41.25 per unit