Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1. Foxx Company incurs $410000 overhead costs each year in its three main departments, setup ($35000), machining ($265000), and packing ($110000). The setup department performs

1. Foxx Company incurs $410000 overhead costs each year in its three main departments, setup ($35000), machining ($265000), and packing ($110000). The setup department performs 40 setups per year, the machining department works 5000 hours per year, and the packing department packs 500 orders per year. Information about Foxxs two products is as follows:

Product A1 Product B1
Number of setups 20 20
Machining hours 1000 4000
Orders packed 150 350
Number of products manufactured 600 400

If machining hours are used as a base under traditional casting, how much overhead is assigned to Product A1 each year?

2.Zimmerman Company manufactures two products, Board 12 and Case 165. Zimmermans overhead costs consist of setting up machines, $2240000; machining, $5350000; and inspecting, $1680000. Information on the two products is:

Board 12 Case 165
Direct labor hours 15000 25000
Machine setups 600 400
Machine hours 24000 26000
Inspections 800 700

Overhead applied to Board 12 using traditional costing using direct labor hours is

3.Tidwell Industries has the following overhead costs and cost drivers. Direct labor hours are estimated at 100000 for the year.

Activity Cost Pool Cost Driver Est. Overhead Cost Driver Activity
Ordering and Receiving Orders $ 55000 500 orders
Machine Setup Setups 238500 450 setups
Machining Machine hours 1337500 125000 MH
Assembly Parts 1070000 1000000 parts
Inspection Inspections 235000 500 inspections

If overhead is applied using traditional costing based on direct labor hours, the overhead application rate is

4.Foxx Company incurs $465000 overhead costs each year in its three main departments, setup ($25000), machining ($305000), and packing ($135000). The setup department performs 40 setups per year, the machining department works 5000 hours per year, and the packing department packs 500 orders per year. Information about Foxxs two products is as follows:

Product A1 Product B1
Number of setups 20 20
Machining hours 1000 4000
Orders packed 150 350
Number of products manufactured 600 400

Using ABC, how much overhead is assigned to Product A1 each year?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Routledge Handbook Of Environmental Accounting

Authors: Jan Bebbington, Carlos Larrinaga, Brendan O'Dwyer, Ian Thomson

1st Edition

0367724901, 9780367724900

More Books

Students also viewed these Accounting questions

Question

If the person is a professor, what courses do they teach?

Answered: 1 week ago