Activity Cost PoolLabor-relatedPurchase ordersParts managementBoard etchingGeneral factoryRequired:Activity MeasureDirect labor-hoursNumber of ordersNumber of part typesNumber of boardsMachine-hoursLAPELLEuOverhead Cost$ 311,500$ 8,840$ 71,280$ 63,700$ 148,000Expected Activity44,500 DLHS221 orders99 part types1,820 boards14,800 MHs1. Compute the activity rate for each of the activity cost pools.2. The expected activity for the year was distributed among the company's four products as follows:Expected ActivityActivity Cost PoolLabor-related (DLHS)Purchase orders (orders)Parts management (part types)Board etching (boards)General factory (MHS)Product AProduct B Product C Product D6,8005127,300294,600495,80092341733155002,1007706,30055002,4004,000Using the ABC data, determine the total amount of overhead cost assigned to each product.Complete this question by entering your answers in the tabs below.Required 1Required 2Using the ABC data, determine the total amount of overhead cost assigned to each product.Overhead Cost Overhead Cost Overhead Cost Overhead CostActivity Cost PoolLabor-related (DLHs)Purchase orders (orders)Parts management (part types)AssignedProduct AAssignedProduct BAssignedProduct CAssignedProduct D

Activity-based costing is used to allocate the indirect cost to the products or cost objects. Under…

Activity Cost Pool Labor-related Purchase orders Parts management Board etching General factory Required: Activity Measure Direct labor-hours Number of orders Number of part types Number of boards Machine-hours EXPECTED Overhead Cost $ 311,500 $ 8,840 $ 71,280 $ 63,700 $ 148,000 Expected Activity 44,500 DLHS 221 orders 99 part types 1,820 boards 14,800 MHs 1. Compute the activity rate for each of the activity cost pools. 2. The expected activity for the year was distributed among the company's four products as follows:

Activity Cost Pool Labor-related Purchase orders Parts management Board etching General factory Required: Activity Measure Direct labor-hours Number of orders Number of part types Number of boards Machine-hours EXPECTED Overhead Cost $ 311,500 $ 8,840 $ 71,280 $ 63,700 $ 148,000 Expected Activity 44,500 DLHS 221 orders 99 part types 1,820 boards 14,800 MHs 1. Compute the activity rate for each of the activity cost pools. 2. The expected activity for the year was distributed among the company's four products as follows:

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter3: Process Cost Systems

Section: Chapter Questions

Problem 2E: Flowchart of accounts related to service and processing departments Alcoa Inc. (AA) is the worlds...

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Refer to the data in Problem 6.31. Assume that the FIFO method is used. Required: 1. Prepare a physical flow schedule. 2. Calculate equivalent units of production for direct materials and conversion costs. 3. Compute unit cost. Round to three decimal places. 4. Calculate the cost of goods transferred to Painting at the end of the month. Calculate the cost of ending inventory.
Flowchart of accounts related to service and processing departments Alcoa Inc. (AA) is the worlds largest producer of aluminum products. One product that Alcoa manufactures is aluminum sheet products for the aerospace industry. The entire output of the Smelting Department is transferred to the Rolling Department. Part of the fully processed goods from the Rolling Department are sold as rolled sheet, and the remainder of the goods are transferred to the Converting Department for further processing into sheared sheet. Prepare a chart of the flow of costs from the processing department accounts into the finished goods accounts and then into the cost of goods sold account. The relevant accounts are as follows:
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?
Journalizing the distribution of service department costs to production departments Required: Using your solution to P4-7, prepare journal entries for the following: The distribution of the total factory overhead of $79,400 to the individual production and service departments where it originated. The distribution of the Building Maintenance overhead to the appropriate other departments. The distribution of the Factory Office overhead to the appropriate other departments.
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.…
Activity Cost Pool Cost Driver EstimatedOverhead Use perProduct A Use perProduct B Machine Setups Setups $144,000 6,000 2,000 Assembly Number of Parts 71,000 25,000 46,000 Machine Maintenance Machine Hours 200,000 13,000 37,000 Compare the overhead allocation using (A) the traditional allocation method and (B) the activity-based costing method. (Hint: the traditional method uses machine hours as the allocation base.) For those boxes in which you must enter subtractive or negative numbers use a minus sign.
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
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…
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
ssume the following information: Milling Department Materials Conversion Total Cost of beginning work in process inventory $ 10,000 $ 15,000 $ 25,000 Costs added during the period 291,600 394,500 686,100 Total cost $ 301,600 $ 409,500 $ 711,100 Assume the equivalent units of production for materials and conversion, when using the weighted-average method, are 5,200 units and 5,000 units, respectively. If the equivalent units in ending work in process inventory for materials and conversion are 400 units and 200 units, respectively, then what is the total cost of ending work in process for the Milling Department?
Required information[The following information applies to the questions displayedbelow.]We discuss how to prepare the process costing production reportusing the weighted-average method. In addition, we discuss that aproduction report is a summary of what occurs in the productionprocess, and includes information about the number of physicalunits, number of equivalent units, cost per equivalent unit, and areconciliation of the cost of Work in Process Inventory. Knowledge Check 01Paula's Fab Tee Company, which prints T-shirts, has three processingdepartments (printing, labeling, and packaging). The total cost per equivalentunit was $17.80 for the printing department, $0.80 for the labeling department,and $0.40 for the packaging department. The total cost of the 1,450 units thatwere transferred out of the Work in Process Inventory (Packaging) account tothe Finished Goods Inventory account was:
Latta Company provided the following T-accounts for this year. Manufacturing OverheadDebit Credit(a) 488,448 (b) 407,040Balance 81,408 Work in ProcessDebit CreditBalance 9,960 (c) 758,000302,000 91,000 (b) 407,040 Balance 52,000 Finished GoodsDebit CreditBalance 38,000 (d) 664,000(c) 758,000 Balance 132,000 Cost of Goods SoldDebit Credit(d) 664,000 The overhead applied to production is distributed among Work in Process, Finished Goods, and Cost of Goods Sold at the end of the year as follows: Work in Process, ending $ 24,960Finished Goods, ending 63,360Cost of Goods Sold 318,720Overhead applied $ 407,040For example, of the $52,000 ending balance in work in process, $24,960 was applied overhead. Required:Identify reasons for entries (a) through (d).Assume underapplied or overapplied overhead is closed to Cost of Goods Sold. Prepare the necessary journal entry.Assume underapplied or overapplied overhead is closed proportionally to Work in…