The part on the right cut off says this:Extra Virgin108,000 hours80,000 bottles Please answer all questions. Thank you! Rosehut Olive Oil Company makes two grades of olive oil: standard and extra virgin. Rosehut has identified two activity cost pools, therelated costs per pool, the cost driver for each pool, and the expected usage for each pool.TotalActivityActivityCostCost DriverStandardExtra VWashing, Pressing & Filtering (WPF)Bottling$1,736,000 Washing, Pressing, and Filtering hours$ 840,00047,000 hours320,000 bottles108,00080,000Number of bottlesAdditional information about each grade of olive oil is as follows:DirectMaterialsDirectSalesLaborGradeRevenueCostsCosts$5,150, 000$2,600,000$900,000$600,000$375,000$150, 000StandardExtra VirginRequired:1. Calculate the activity rate for each cost pool.2. Using the activity rates, determine the total amount of overhead assigned to each product.3. Determine total manufacturing cost for each product. Required:1. Calculate the activity rate for each cost pool.2. Using the activity rates, determine the total amount of overhead assigned to each product.3. Determine total manufacturing cost for each product.4. Calculate the gross profit for each product.Complete this question by entering your answers in the tabs below.Required 1Required 2Required 3Required 4Calculate the activity rate for each cost pool. (Round your answers to 2 decimal places.)ActivityCost PoolWashing, Pressing & Filtering (WPF)per hourBottlingper bottle< Required 1Required 2 >

"Since you have posted a question with multiple sub parts, we will solve first three sub parts for…

Rosehut Olive Oil Company makes two grades of olive oil: standard and extra virgin. Rosehut has identified two activity cost pools, the related costs per pool, the cost driver for each pool, and the expected usage for each pool. Total Activity Activity Cost Cost Driver Standard Extra V Washing, Pressing & Filtering (WPF) Bottling $1,736,e00 Washing, Pressing, and Filtering hours $ 840,000 47,000 hours 320,000 bottles 108,000 Number of bottles 80,000 Additional information about each grade of olive oil is as follows: Direct Direct Sales Materials Labor Costs Grade Standard Extra Virgin Revenue Costs $5,150,000 $2,600,000 $900,000 $600,000 $375,000 $150,000 Required: 1. Calculate the activity rate for each cost pool. 2. Using the activity rates, determine the total amount of overhead assigned to each product. 3. Determine total manufacturing cost for each product.

Rosehut Olive Oil Company makes two grades of olive oil: standard and extra virgin. Rosehut has identified two activity cost pools, the related costs per pool, the cost driver for each pool, and the expected usage for each pool. Total Activity Activity Cost Cost Driver Standard Extra V Washing, Pressing & Filtering (WPF) Bottling $1,736,e00 Washing, Pressing, and Filtering hours $ 840,000 47,000 hours 320,000 bottles 108,000 Number of bottles 80,000 Additional information about each grade of olive oil is as follows: Direct Direct Sales Materials Labor Costs Grade Standard Extra Virgin Revenue Costs $5,150,000 $2,600,000 $900,000 $600,000 $375,000 $150,000 Required: 1. Calculate the activity rate for each cost pool. 2. Using the activity rates, determine the total amount of overhead assigned to each product. 3. Determine total manufacturing cost for each product.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 5PA: Medical Tape makes two products: Generic and Label. It estimates it will produce 423,694 units of...

See similar textbooks

Similar questions

Consumption Ratios; Activity Rates Saludable Company produces two types of get-well cards: scented and regular. Drivers for the four activities are as follows: Scented Cards Regular Cards Inspection hours 1,080 720 Setup hours 420 180 Machine hours 960 2,880 Number of moves 2,880 720 The following activity data has been collected: Inspecting products $45,000 Setting up equipment 28,500 Machining 30,720 Moving materials 16,200 Required: 1. Calculate the consumption ratios for the four drivers (round to two decimal places). Scented Cards Regular Cards Inspection hours Setup hours Machine hours Number of moves 2. Which of the following statements indicate there is product diversity? Explain the significance of product diversity for decision making if the company chooses to use machine hours to assign all overhead. If machine hours are used as the only driver, cards would receive 25% of the overhead, and…
Consumption Ratios; Activity RatesSaludable Company produces two types of get-well cards: scented and regular. Drivers for the four activities are as follows: Scented Cards Regular Cards Inspection hours 1,080 720 Setup hours 420 180 Machine hours 960 2,880 Number of moves 2,880 720 The following activity data have been collected: Inspecting products $45,000 setting up equipment 28,500 Machining 30,720 Moving materials 16,200 Required:1. Calculate the consumption ratios for the four drivers (round to two decimal places).2. CONCEPTUAL CONNECTION Is there evidence of product diversity? Explain the significance of product diversity for decision making if the company chooses to use machine hours to assign all overhead.3. Calculate the activity rates that would be used to assign costs to each product (round to two decimal places).4. Suppose that the activity rate for inspecting products is $20 per inspection hour. How many hours of inspection are expected…
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?
Consumption Ratios; Activity Rates Saludable Company produces two types of get-well cards: scented and regular. Drivers for the four activities are as follows: Scented Cards Regular Cards Inspection hours 130 80 Setup hours 80 10 Machine hours 210 550 Number of moves 210 80 The following activity data has been collected: Inspecting products $5,100 Setting up equipment 4,660 Machining 6,490 Moving materials 1,340 Required: 1. Calculate the consumption ratios for the four drivers. Round your answers to two decimal places.
Consumption Ratios; Activity Rates Saludable Company produces two types of get-well cards: scented and regular. Drivers for the four activities are as follows: Scented Cards Regular Cards Inspection hours 100 80 Setup hours 80 30 Machine hours 200 550 Number of moves 215 75 The following activity data has been collected: Inspecting products $5,020 Setting up equipment 4,850 Machining 6,360 Moving materials 1,390 Required: 1. Calculate the consumption ratios for the four drivers. Round your answers to two decimal places. Scented Cards Regular Cards Inspection hours fill in the blank 1 fill in the blank 2 Setup hours fill in the blank 3 fill in the blank 4 Machine hours fill in the blank 5 fill in the blank 6 Number of moves fill in the blank 7 fill in the blank 8 2. Which of the following statements indicate there is product diversity? Explain the significance of product diversity for decision making if the company chooses…
Consumption Ratios; Activity Rates Dienestar Company produces two types of get-well cards: scented and regular. Drivers for the four activities are as follows: Scented Cards Regular Cards Inspection hours Setup fours Machine hours Inspection hours Setup fours 140 100 Number of moves The following activity data has been collected: Inspecting products Setting up equipment Machining Moving materials Required: 210 235 Rates: 100 20 1. Calculate the commption ratus for the four drivers. Round your answers to two decimal places. Scented Cards Regular Cards 0.42 ✔ 0.17 V 0.74 ✓ pocting produds Setting up equipment Machining Moving material 600 0.50 0.83 ✔ 0.26 ✔ 0.77 ✔ 70 $4,970 4,740 6.320 1,290 Machine hours Number of moves 2. Which of the following statements indicate there is product diversity? Significant variation in the consumption ratios from driver to driver Explain the significance of product diversity for decision-making it the company Chooses to use inachine uus to assign all…
Gable Company uses three activity pools. Each pool has a cost driver. Information for Gable Company follows: Activity Pools Total Cost of Pool Cost Driver Estimated Cost Driver Machining $ 454,960 Number of machine hours 96,800 Designing costs 100,000 Number of design hours 10,000 Setup costs 72,720 Number of batches 505 E4-4 (Algo) Assigning Costs Using Activity Rates [LO 4-4] Suppose that Gable Company manufactures three products, A, B, and C. Information about these products follows: Product A Product B Product C Number of machine hours 38,000 48,000 10,800 Number of design hours 4,000 2,200 3,800 Number of batches 40 170 295 Required:Using activity rates, determine the amount of overhead assigned to each product.
Snapware Systems produces commercial strength cleansing supplies. Two of its main products are window cleaner that uses ammonia, and floor cleaner that uses bleach. Information for the most recent period follows: Product Names Window Cleaner (ammonia) Floor Cleaner (bleach) Direct materials information: Standard ounces per unit 16 oz. 24 oz. Standard price per ounce $0.75 ? Actual quantity used per unit 20 oz. 22 oz. Actual price paid for material $1.00 $0.90 Actual quantity purchased and used 1,500 oz. 2,800 oz.. Price variance ? $300 U Quantity variance $1,500 U ? Total direct materials variance ? $678 F Number of units produced 500 600 What is the standard price for bleach? Select one: a. $0.88/oz. b. $1.09/oz. c. $1.14/oz. d. $0.79/oz. e. $0.92/oz.
Relevant costs; special order pricingKantrovitz Company is a manufacturer of industrial components. One of its products, AP110, is used as a subcomponent in appliance manufacturing. This product has the following information per unit: Selling price $150.00 Costs: Direct material $20.00 Direct labor 15.00 Variable manufacturing overhead 12.00 Fixed manufacturing overhead 30.00 Shipping and handling 3.00 Fixed selling and administrative 10.00 Total per-unit cost $90.00 a. Kantrovitz has received a special, one-time order for 1,600 AP110 parts. Assuming Kantrovitz has excess capacity, what is the minimum price that is acceptable for beginning negotiations on this order? $Answerb. Kantrovitz has 8,000 units of AP110 in inventory that have some defects. The units cannot be sold through regular channels without a significant price reduction. What per-unit cost figure is relevant for setting a minimum selling price on these units? $Answerc. During the next year,…
Relevant costs; special order pricingKantrovitz Company is a manufacturer of industrial components. One of its products, AP110, is used as a subcomponent in appliance manufacturing. This product has the following information per unit: Selling price $150.00 Costs: Direct material $20.00 Direct labor 15.00 Variable manufacturing overhead 12.00 Fixed manufacturing overhead 30.00 Shipping and handling 3.00 Fixed selling and administrative 10.00 Total per-unit cost $90.00 a. Kantrovitz has received a special, one-time order for 1,600 AP110 parts. Assuming Kantrovitz has excess capacity, what is the minimum price that is acceptable for beginning negotiations on this order? Answer: $50 d. Referring to (a), Kantrovitz has received a special, one-time order for 1,600 AP110 parts. Assume that Kantrovitz is operating at full capacity, and that the contribution of the output would be displaced by the one-time special order. Using the original data, compute the minimum…
Gable Company uses three activity pools. Each pool has a cost driver. Information for Gable Company follows: Total Cost of Pool $ 380, 120 86,400 74,672 Estimated Cost Driver 88,400 9,000 525 Activity Pools Machining Designing costs Setup costs E4-5 (Algo) Assigning Costs Using Activity Proportions [LO 4-5, 4-6] Suppose that Gable Company manufactures three products, A, B, and C. Information about these products follows: Product A 34,000 3,600 60 Number of machine hours Number of design hours Number of batches Cost Driver Number of machine hours Number of design hours Number of batches Product A Product B Product C Total Overhead Assigned Product B Product C 10,400 3,400 285 Required: 1. Using activity proportions, determine the amount of overhead assigned to each product. Note: Do not round your intermediate calculations. Round your final answers to nearest whole number. 44,000 2,000 180
Relevant costs; special order pricingKantrovitz Company is a manufacturer of industrial components. One of its products, AP110, is used as a subcomponent in appliance manufacturing. This product has the following information per unit: Selling price $150.00 Costs: Direct material $20.00 Direct labor 15.00 Variable manufacturing overhead 12.00 Fixed manufacturing overhead 30.00 Shipping and handling 3.00 Fixed selling and administrative 10.00 Total per-unit cost $90.00 a. Kantrovitz has received a special, one-time order for 1,000 AP110 parts. Assuming Kantrovitz has excess capacity, what is the minimum price that is acceptable for beginning negotiations on this order? $Answer b. Kantrovitz has 5,000 units of AP110 in inventory that have some defects. The units cannot be sold through regular channels without a significant price reduction. What per-unit cost figure is relevant for setting a minimum selling price on these units? $Answer c. During the next…