Q-5. A company manufactures three products A, B, and C using the same equipment and processes....
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Q-5. A company manufactures three products A, B, and C using the same equipment and processes. Data for the period is given below. A B C 20000 25000 2000 Production (units) Sales price (per unit) $20 $20 $20 Material cost per unit $5 $10 Labour hours per unit 2 hours 1 hour Labour is paid at the rate of $5 per hour were as follows: Overheads for the period Set up costs 90000 Receiving 30000 Dispatch 15000 Machining 55000 $190000 Cost driver data: A B C Machine hours per unit 2 2 2 Number of set ups 10 13 2 Number of deliveries received 10 10 2 Number of orders dispatched 20 20 20 Required: 1.Calculate the cost per unit, absorbing all the overheads on the basis of labour hours. (5) 2. Calculate the cost per unit, absorbing the overheads on the basis of Activity based costing approach. (5) $10 1 hour Q-5. A company manufactures three products A, B, and C using the same equipment and processes. Data for the period is given below. A B C 20000 25000 2000 Production (units) Sales price (per unit) $20 $20 $20 Material cost per unit $5 $10 Labour hours per unit 2 hours 1 hour Labour is paid at the rate of $5 per hour were as follows: Overheads for the period Set up costs 90000 Receiving 30000 Dispatch 15000 Machining 55000 $190000 Cost driver data: A B C Machine hours per unit 2 2 2 Number of set ups 10 13 2 Number of deliveries received 10 10 2 Number of orders dispatched 20 20 20 Required: 1.Calculate the cost per unit, absorbing all the overheads on the basis of labour hours. (5) 2. Calculate the cost per unit, absorbing the overheads on the basis of Activity based costing approach. (5) $10 1 hour
Expert Answer:
Answer rating: 100% (QA)
Question 1 Overhead rate Total overheadTotal direct Labor hours Computation of total direct labor ho... View the full answer
Related Book For
Operations management processes and supply chain
ISBN: 978-0136065760
9th edition
Authors: Lee J Krajewski, Larry P Ritzman, Manoj K Malhotra
Posted Date:
Students also viewed these accounting questions
-
Number of units 870 units 25,000 units 2,800 units Sales price per unit $ 1,000 $ 100 $ 160 Variable costs per unit 600 60 80 Total fixed costs 79,200 80,000 64,000 Target profit 268,800 920,000...
-
A company manufactures three products, L-Ten, Triol, and Pioze, from a joint process. Each production run costs $12,900. None of the products can be sold at split-off, but must be processed further....
-
A company manufactures three products using the same production process. The costs incurred up to the split-off point are $200,000. These costs are allocated to the products on the basis of their...
-
Pop Corporation acquired 80 percent of Son Corporation's common stock on January 1, 2016, for $420,000 cash. The stockholders' equity of Son at this time consisted of $300,000 capital stock and...
-
Port Austin Boat Repair Inc. has entered and posted its adjusting entries for 2009. The following are the adjusted account balances: Sales Revenue ................$578,500 Interest Revenue...
-
Describe the following on- the- job methods of management development: a. Understudy assignments. b. Coaching. c. Experience. d. Job rotation. e. Special projects. f. Committee assignments.
-
The "principal" of a note receivable refers to: a. the present value of the note. b. the amount of cash borrowed. c. the financing company that is lending the money. d. the amount of interest due.
-
Create a problem definition for Williwonks, as described in Problem 1. Estimate the weights of importance. Include at least one requirement and one constraint.
-
Taylor Ltd has determined its optimal capital structure and after-tax finance costs to be as follows: $500,000 of long-term debt at a cost of 6%, $100,000 of preferred stock at 15%, and $400,000 of...
-
Graphical representations of the Ingersoll Rand 2018 income statement and average balance sheets (2017-2018) follow. Compute, Disaggregate, and Interpret ROE and RNOA Graphical representations of the...
-
Problem 2 Blow is a list of accounts and balances from worksheet of Treble Company for December 3 1 , 2 0 2 3 : Required: Prepare a properly classified statement of financial position for December 3...
-
use the formula approach or calculator approach, answer the following questions: 19. Suppose you want to borrow $20,000 for a new car. You can borrow at 8% per year, compounded monthly. If you take a...
-
Infomatic Specialists Inc. (ISI), which develops software for the healthcare industry, was founded five years ago by Juan Benitez and Peggy Stark, who are still its sole shareholders. ISI has now...
-
Your credit card company quotes a lending rate of 18% APR. How much is the periodic rate if the company compounds monthly?
-
Emma Li, a first-year student at UTSC, needs $55,356 in 4 years to buy the car of her dreams. Her investments earn 5% interest per year. If she invested once a year for four years how much must she...
-
Saskatchewan Mining and Steel (SMS) Corporation is evaluating whether it should produce a new synthetic steel that will require billions of dollars to develop. According to Bill Bates, the CEO of...
-
What skills do you use to solve business problems
-
For all of the following words, if you move the first letter to the end of the word, and then spell the result backwards, you will get the original word: banana dresser grammar potato revive uneven...
-
The sales activity at Best Car has changed. Weekly sales are now estimated to be distributed as follows: Weekly sales (cars) Relative Frequency (probability) 0 .....................0.02 1...
-
MKM International is seeking to purchase a new CNC machine in order to reduce costs. Two alternative machines are in consideration. Machine 1 costs $500,000, but yields a 15 percent savings over the...
-
The partially completed inventory record for the table top subassembly in Figure shows gross requirements scheduled receipts, lead time, and current on-hand inventory. a. Complete the last three rows...
-
Executive compensation is often based on meeting certain targets for revenue growth, earnings, earnings per share, return on assets, or other performance measures. But what if performance is not...
-
Go to the website for Moodys Investors Service. Click on ratings, which will show revisions of debt ratings issued by Moodys in the past few days. Choose a rating that has been upgraded or downgraded...
-
Divide into groups. Assume your group is analyzing the fate of the larger airlines, such as United and American. You have the following information: a. Between 1999 and now, the long-term debt,...
Study smarter with the SolutionInn App