The overheads of the following cost centers of Kukrudu Co Ltd are as follows: Assembly Packing Stores Maintenance Overhead 10,030 8970 10,000 8,000 Overheads of the Service Department are to be apportioned as follows: Assembly Packing Stores Maintenance Stores Stores 30% 50% - 20% Maintenance 80% 10% 10% -Calculate Total overheads of the Production cost centers, using Repeated Distribution method. n8 54% OI 4:0646ABC vs Tradition.Cost AccountingQuestions for TrialTraditional and Activity Based CostingQuestion 1The overheads of the following cost centers of Kukrudu Co Ltd are as follows:Packing8970Assembly10,030StoresMaintenanceOverhead10,0008,000Overheads of the Service Department are to be apportioned as follows:Assembly PackingMaintenance Stores20%StoresStores30%50%Maintenance80%10%10%Calculate Total overheads of the Production cost centers, using Repeated Distribution method.Question 2Obiba Brokeman produces two types of protective gloves namely Deluxe and Roughrider. Hehas been costing for the products using the Traditional (Volume based) Approach to AbsorbingOverheads. He is considering using Activity Based Costing. The following budgeted data areavailable.DeluxeRoughrider25,000 UnitsGH¢75,000(i) Quantity Produced(ii) Direct Cost(iii) Machine Hours(iv) Material Handling (number of moves) 350,000(v) Number of Set-ups100,000 UnitsGH¢350,00025,000 Hrs6,250 Hrs50,00010025The Overhead Costs are as follows:Machine MaintenanceMaterial HandlingGH¢125,000150,000Set-Ups CostIt is the policy of Brokeman:(a) to Absorb Overhead on the basis of Machine Hours(b) to make a profit of 25 % on Sales.What should be the Selling Price of the two products using?225,000(i)(i)the Traditional Approach to Absorption of OverheadsActivity Based Costing.Question 3Company XYZ has 2 fixed price contracts for 2 different clients. The company has enoughcapacity for both contracts but is uncertain whether they will be profitable.Data as follows:CustomerAAABBBComponent TypeContract Value(GH¢)Contract QuantityMaterial cost/unitA99927,0001,000 unitВ999100,2,00GH¢.Moulding time/batchBatch SizeGH¢155 hours100 units7.5 ho50 unitsAnnual Budgeted overheads as follows:ActivityMouldingInspectionProductionCost DriverMoulding hoursBatchesManagement Contra ctsCost driver volume/yr2,000Cost poolGH¢150,000GH¢75,000GH¢125,00015020Required:Calculate the activity hased costs and profits for each contract

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The overheads of the following cost centers of Kukrudu Co Ltd are as follows: Assembly Packing Stores Maintenance Overhead 10,030 8970 10,000 8,000 Overheads of the Service Department are to be apportioned as follows: Assembly Packing Stores Maintenance Stores Stores 30% 50% - 20% Maintenance 80% 10% 10% - Calculate Total overheads of the Production cost centers, using Repeated Distribution method.

The overheads of the following cost centers of Kukrudu Co Ltd are as follows: Assembly Packing Stores Maintenance Overhead 10,030 8970 10,000 8,000 Overheads of the Service Department are to be apportioned as follows: Assembly Packing Stores Maintenance Stores Stores 30% 50% - 20% Maintenance 80% 10% 10% - Calculate Total overheads of the Production cost centers, using Repeated Distribution method.

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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Saved Help Sav CH 07 i Klumper Corporation is a diversified manufacturer of industrial goods. The company's activity-based costing system cont following six activity cost pools and activity rates: Activity Cost Pool Supporting direct labor Machine processing Machine setups Activity Rates $6 per direct labor-hour $ 4 per machine-hour $ 50 per setup $ 90 per order $ 14 per shipment $ 840 per product Production orders Shipments Product sustaining Activity data have been supplied for the following two products: Total Expected Activity K425 M67 Number of units produced per year Direct labor-hours 200 2,000 80 500 Machine-hours Machine setups Production orders 100 1,500 1 4 4 Shipments Product sustaining 1 10 1 Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system? DELL F3 prt sc home end F4 F5 F6
Required information [The following information applies to the questions displayed below.] Victory Company uses weighted average process costing. The company has two production processes. Conversion cost is added evenly throughout each process. Direct materials are added at the beginning of the first process. Additional information for the first process follows. Beginning work in process inventory. Units started this period Units completed and transferred out Ending work in process inventory Beginning work in process inventory Direct materials Conversion Costs added this period Direct materials Conversion Total costs to account for Cost assignment-Weighted average Completed and transferred out Direct materials Conversion Ending work in process Direct materials Conversion Total costs accounted for Units EUP 72,000 882,000 775,000 179,000 $ 558,090 84,660 3,734,910 1,608,540 Direct Materials Percent Complete 100% 3. Assign costs to the department's output-specifically, to the units…
Goodfriend Corp. provides the following information: Service Service Dept. Z Dept. X $1,000 $600 Costs to be allocated Proportions of service provided by Dept. X Proportions of service provided by Dept. Z Compute the cost allocations To S: S .10 .20 Production Dept. S .20 .45 Production Dept. T to Dept. S and Dept. T under the reciprocal method: To T: S .60 .45
TB MC Qu. 4-96 Welrlck, Inc., manufactures and sells ... Weirick, Inc., manufactures and sells two products: Product T8 and Product P4. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity Estimated Overhead Cost $ 139,900 65,970 1,031,820 $1,237,690 Expected Activity Activity Cost Pools Labor-related Production orders Order size Activity Measures DLHS Product T8 Product P4 5,400 1,000 Total 8,100 1,600 2,700 orders 600 MHs 3,100 4,000 7,100 The total overhead applied to Product P4 under activity-based costing is closest to: (Round your Intermedlete calculations to 2 decimal places.) Multiple Cholce $965,850 $581,320 S652.687 Mc Graw Hill 10:55 AM 66°F Mostly cloudy 21 10/20/2021 P Type here to search DELL PgUp PgDn Home F11 F12 PrtScr Insert Delete F8 F9 F10 F2 F5 F6 F7 F3 F4 Num
TB MC Qu. 4-49 Boesenhofer, Inc., manufactures and sells... Boesenhofer, Inc., manufactures and sells two products: Product N6 and Product N7. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity Estimated Expected Activity Activity Overhead Activity Cost Pools Measures Cost Product N6 Product N7 Labor-related DLHS Total $345,060 128,534 107,598 2,100 600 4,100 Machine setups 5,000 800 3,800 setups 7,100 Order size MHs 1,400 7,900 $581,192 The activity rate for the Machine Setups activity cost pool is closest to: Multiple Cholce $73.57 per setup $91.81 per setup Prev of 36 Next > 10:54 AM 66°F Mostly cloudy 目。 21 10/20/2021 pe here to search DELL Home End Delete PgUp PgDn F12 PrtScr Insert F10 F11 F8 F9 F7 F4 F5 F6 F3 Num Lock Backspace & %23 %24
TB MC Qu. 4-94 Vanvalkenburg, Inc., manufactures and... Vanvalkenburg. Inc., manufactures and sells two products: Product GQ5 and Product JO. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Estimated Expected Activity Activity Overhead Activity Cost Pools Measures Cost Product Q5 Product JØ Total Labor-related DLHS $191,748 70,536 295,592 Production orders 3,000 2,800 5,800 orders 300 500 800 Order size MHs 4,300 4,500 8,800 $557,876 The activity rate for the Order Size activity cost pool under activity-based costing is closest to: Multiple Cholce $36.23 per MH $68.48 per MH $96.19 per MH 10:54 AM 66°F Mostly cloudy 21 pe here to search 10/20/2021 DELL PgUp PgDn Ho Delete
Overheads cost analysisRProduction 4 400 000Materials handling 1 000 000Set-up 1 050 000Quality control 1 900 000Materials procurement 400 000Cost driver analysisCost drivers Product A Product B TotalDirect labour hours 320 000 180 000 500 000Number of set-ups 420 280 700Materials movements 700 300 1 000Number of orders 1 300 700 2 000Number of inspections 1 140 760 1 900 Annual outputProduct A 200 000 unitsProduct B 100 000 units Use the information provided below to calculate the overhead cost per product using the followingcosting systems: Traditional Absorption Costing, using direct labour hours as the basis for allocation.…
TB MC Qu. 7-151 (Algo) Mirabile Corporation uses activity-based ... Mirabile Corporation uses activity-based costing to compute product margins. Overhead costs have already been allocated to the company's three activity cost pools-Processing. Supervising, and Other. The costs in those activity cost pools appear below. Processing Supervising $ 4,500 $ 26,640 $ 11,700 Other Processing costs are assigned to products using machine-hours (MHs) and Supervising costs are assigned to products using the number of batches. The costs in the Other activity cost pool are not assigned to products. Activīty data appear below: Batches MHS (Processing) (Supervising) Product MO 9,500 600 Product M5 500 600 Total 10,000 1,200 Finally, sales and direct cost data are combined with Processing and Supervising costs to determine product margins. Product MO Product M5 Sales (total) Direct materials (total) Direct labor (total) $ 83,100 $ 29,800 $ 29,100 $ 96,400 $ 32,700 $ 43,000 What is the overhead cost…
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?
ParticularsAmountDirect materialR12Direct laborR50Variable manufacturing overheadR6.50Unit product cost for the month under marginal costingR68.50 Prepare an income statement for the month using the Marginal costing method.
The costs allocated to each cost center are as follows: Q3: Cost Centers/Costs Production Department Service Department Total Cost Y A B Total of Primary Distribution There is a reciprocal relationship between cost centers. X Service Cost center based on the number of workers, Y Service Cost center will be apportioned on the base of 40.000 45.000 55.000 8.000 7.160 155.500 m2. A B X Y Total Number of Workers m2 152 4.500 114 1.350 76 2.700 20 450 38 300 400 9.300 a) Calculate the benefits received from each service department. b) Calculate the X Service Center's total cost subject to re-distribution. c) Calculate the Y Service Center's total cost subject to re-distribution. d) Re-allocate the cost of service cost centers
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