fouōs 2 points Hall, Incorporated manufactures two components, Standard and Ultra, that are designed for the same function, but are made of different metals for operational performance reasons. The metal used in Standard is easy to work with and there are few quality issues or reworking required on the machines. The metal used in Ultra is more difficult to work with and often needs additional machine time and rework. Data on expected operations and direct costs for the next fiscal year follow: Units produced eBook Direct labor-hours used Machine-hours used Standard 38,000 114,000 19,000 Ultra Total 11,500 22,500 22,500 49,500 136,500 41,500 Direct materials costs Direct labor costs $ 2,914,000 2,520,000 $ 3,088,000 855,000 $ 6,002,000 3,375,000 Print References The planning process team at Hall, Incorporated has estimated the following manufacturing overhead costs for the next fiscal year: Account Administration Engineering Machine operation and maintenance Miscellaneous Supervision Total Amount $ 825,400 2,794,500 825,000 540,100 884,500 $ 5,869,500 The cost accounting system at Hall, Incorporated calculates product costs by adding allocated overhead to the direct costs of the product. Overhead costs are allocated based on direct labor-hours. Required: a. Compute the estimated per unit product costs for the next fiscal year, based on the current cost accounting system. b. An analyst on the planning process team suggests that a two-stage system would improve the estimated product costs. The analyst suggests that overhead be first assigned to on one of two cost pools: Machine related and labor related. Machine-related overhead consists of the accounts "Engineering" and "Machine operation and maintenance." Labor-related overhead consists of the remaining manufacturing overhead. Machine-related costs would be allocated based on machine-hours. Labor-related overhead would be allocated based on direct labor cost. Compute the estimated per unit product costs for the next fiscal year, based on the system proposed by the analyst. Complete this question by entering your answers in the tabs below. Required A Required B An analyst on the planning process team suggests that a two-stage system would improve the estimated product costs. The analyst suggests that overhead be first assigned to on one of two cost pools: Machine related and labor related. Machine- related overhead consists of the accounts "Engineering" and "Machine operation and maintenance." Labor-related overhead consists of the remaining manufacturing overhead. Machine-related costs would be allocated based on machine-hours. Labor- related overhead would be allocated based on direct labor cost. Compute the estimated per unit product costs for the next fiscal year, based on the system proposed by the analyst. Note: Do not round your intermediate calculations. Round your final answers to 2 decimal places. Standard Ultra Product cost per unit < Required A Required B > Show less▲ 2 10 points Hall, Incorporated manufactures two components, Standard and Ultra, that are designed for the same function, but are made of different metals for operational performance reasons. The metal used in Standard is easy to work with and there are few quality issues or reworking required on the machines. The metal used in Ultra is more difficult to work with and often needs additional machine time and rework. Data on expected operations and direct costs for the next fiscal year follow: Standard Ultra Total Units produced eBook Direct labor-hours used Machine-hours used 38,000 114,000 19,000 11,500 22,500 22,500 49,500 136,500 41,500 Direct materials costs Direct labor costs $ 2,914,000 2,520,000 $ 3,088,000 855,000 $ 6,002,000 3,375,000 Print References The planning process team at Hall, Incorporated has estimated the following manufacturing overhead costs for the next fiscal year: Account Administration Engineering Machine operation and maintenance Miscellaneous Supervision Total Amount $ 825,400 2,794,500 825,000 540,100 884,500 $ 5,869,500 The cost accounting system at Hall, Incorporated calculates product costs by adding allocated overhead to the direct costs of the product. Overhead costs are allocated based on direct labor-hours. Required: a. Compute the estimated per unit product costs for the next fiscal year, based on the current cost accounting system. b. An analyst on the planning process team suggests that a two-stage system would improve the estimated product costs. The analyst suggests that overhead be first assigned to on one of two cost pools: Machine related and labor related. Machine-related overhead consists of the accounts "Engineering" and "Machine operation and maintenance." Labor-related overhead consists of the remaining manufacturing overhead. Machine-related costs would be allocated based on machine-hours. Labor-related overhead would be allocated based on direct labor cost. Compute the estimated per unit product costs for the next fiscal year, based on the system proposed by the analyst. Complete this question by entering your answers in the tabs below. Required A Required B Compute the estimated per unit product costs for the next fiscal year, based on the current cost accounting system. Standard Product cost per unit Ultra < Required A Required B >

fouōs 2 points Hall, Incorporated manufactures two components, Standard and Ultra, that are designed for the same function, but are made of different metals for operational performance reasons. The metal used in Standard is easy to work with and there are few quality issues or reworking required on the machines. The metal used in Ultra is more difficult to work with and often needs additional machine time and rework. Data on expected operations and direct costs for the next fiscal year follow: Units produced eBook Direct labor-hours used Machine-hours used Standard 38,000 114,000 19,000 Ultra Total 11,500 22,500 22,500 49,500 136,500 41,500 Direct materials costs Direct labor costs $ 2,914,000 2,520,000 $ 3,088,000 855,000 $ 6,002,000 3,375,000 Print References The planning process team at Hall, Incorporated has estimated the following manufacturing overhead costs for the next fiscal year: Account Administration Engineering Machine operation and maintenance Miscellaneous Supervision Total Amount $ 825,400 2,794,500 825,000 540,100 884,500 $ 5,869,500 The cost accounting system at Hall, Incorporated calculates product costs by adding allocated overhead to the direct costs of the product. Overhead costs are allocated based on direct labor-hours. Required: a. Compute the estimated per unit product costs for the next fiscal year, based on the current cost accounting system. b. An analyst on the planning process team suggests that a two-stage system would improve the estimated product costs. The analyst suggests that overhead be first assigned to on one of two cost pools: Machine related and labor related. Machine-related overhead consists of the accounts "Engineering" and "Machine operation and maintenance." Labor-related overhead consists of the remaining manufacturing overhead. Machine-related costs would be allocated based on machine-hours. Labor-related overhead would be allocated based on direct labor cost. Compute the estimated per unit product costs for the next fiscal year, based on the system proposed by the analyst. Complete this question by entering your answers in the tabs below. Required A Required B An analyst on the planning process team suggests that a two-stage system would improve the estimated product costs. The analyst suggests that overhead be first assigned to on one of two cost pools: Machine related and labor related. Machine- related overhead consists of the accounts "Engineering" and "Machine operation and maintenance." Labor-related overhead consists of the remaining manufacturing overhead. Machine-related costs would be allocated based on machine-hours. Labor- related overhead would be allocated based on direct labor cost. Compute the estimated per unit product costs for the next fiscal year, based on the system proposed by the analyst. Note: Do not round your intermediate calculations. Round your final answers to 2 decimal places. Standard Ultra Product cost per unit < Required A Required B > Show less▲ 2 10 points Hall, Incorporated manufactures two components, Standard and Ultra, that are designed for the same function, but are made of different metals for operational performance reasons. The metal used in Standard is easy to work with and there are few quality issues or reworking required on the machines. The metal used in Ultra is more difficult to work with and often needs additional machine time and rework. Data on expected operations and direct costs for the next fiscal year follow: Standard Ultra Total Units produced eBook Direct labor-hours used Machine-hours used 38,000 114,000 19,000 11,500 22,500 22,500 49,500 136,500 41,500 Direct materials costs Direct labor costs $ 2,914,000 2,520,000 $ 3,088,000 855,000 $ 6,002,000 3,375,000 Print References The planning process team at Hall, Incorporated has estimated the following manufacturing overhead costs for the next fiscal year: Account Administration Engineering Machine operation and maintenance Miscellaneous Supervision Total Amount $ 825,400 2,794,500 825,000 540,100 884,500 $ 5,869,500 The cost accounting system at Hall, Incorporated calculates product costs by adding allocated overhead to the direct costs of the product. Overhead costs are allocated based on direct labor-hours. Required: a. Compute the estimated per unit product costs for the next fiscal year, based on the current cost accounting system. b. An analyst on the planning process team suggests that a two-stage system would improve the estimated product costs. The analyst suggests that overhead be first assigned to on one of two cost pools: Machine related and labor related. Machine-related overhead consists of the accounts "Engineering" and "Machine operation and maintenance." Labor-related overhead consists of the remaining manufacturing overhead. Machine-related costs would be allocated based on machine-hours. Labor-related overhead would be allocated based on direct labor cost. Compute the estimated per unit product costs for the next fiscal year, based on the system proposed by the analyst. Complete this question by entering your answers in the tabs below. Required A Required B Compute the estimated per unit product costs for the next fiscal year, based on the current cost accounting system. Standard Product cost per unit Ultra < Required A Required B >

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter4: Activity-based Costing

Section: Chapter Questions

Problem 4CE: Larsen, Inc., produces two types of electronic parts and has provided the following data: There are...

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