1 Wahyuzan Inc produces two types of ergonomic chairs: Gaming Chair and Office Chair. Due to pandemic, Wahyuzan's demand for Office Chair grown significantly. It estimates production of 150000 units of Gaming Chair and 250000 units of Office Chair. Below are the following data relative with activity cost pools and the cost drivers for each cost pool. Gaming Chair Produced Office Chair Produced 150.000 250.000 Annual Overhead Data Estimated use of Cost Drivers per Product Gaming Chair Office Chair Activity Cost Pools Cost Drivers Estimated Overhead Estimated Use of Cost Drivers per Activity Ordering and receiving Chair Setup Assembling Inspecting and testing Purchase orders Setups Parts Tests 2.109.000 8.409.000 12.000.000 4.000.000 26.518.000 3.000 orders 2.500 setups 4.000.000 parts 30.000 tests 1.300 1.000 1.800.000 12.000 1.700 1.500 2.200.000 18.000 Using the data above: a. Prepare a schedule showing the computations of the activity-based overhead rates per cost driver b. Prepare a schedule assigning each activity's averhead cost to the two products c. Compute the overhead cost per unit for each product 2 Ratih Interior Design uses four activity pools to apply overhead to its project. Ratih Interior Design usually uses predetermined overhead rate to calculate applied overhead. This year, Ratih Interior Design decided to use activity-based costing to calculate applied overhead. Below are the relevant information conceming Ratih Interior Design for 2023. (1) Ratih Interior Design estimated $4,000,000 of annual revenue, $2,000,000 of annual direct labor costing, and uses 50% predetermined overhead rate based on direct labor costing (2) Ratih Interior Design records 140,000 of actual direct professional hours, and was billed an audit fee of $250,000 (revenue) for one of its client, Honu. (3) Under activity-based costing, Ratih Interior Design distributes Its estimated annual overhead costs to three activity cost pools in the table below. Activities Ratih Interior Design Overhead Budget Cost Drivers Estimated Overhead number of revision 250.000 square meters 350.000 direct labor hours 400.000 Initial Concept Formation Design Decorating Estimated Use of Cost Drivers per Activity 20 revisions 250.000 square meters 400 hours (4) The assignment of the individual overhead activity rates to the actual number of activities used in the performance of Honu audit results are in the table below Ratih Interior Design Honu Audit Activities Cost Drivers Actual Use of Drivers Initial Concept Formation number of revision 2 Design square meters 20409 Decorating direct labor hours 12 From the information above: a. Calculate Ratih Interior annual applied manufacturing overhead and Honu audit applied manufacturing overhead using traditional method! b. Using activity-based costing, calculate overhead rate for each cost pool c. Determined overhead allocated to Honu Audit based on activity-based costing d. Compare traditional costing and ABC in Honu Audit 3 Below are the information regarding PT Ibrahim total costs at two levels of production Direct Materials Direct Labor Manufacturing Utilities Indirect Materials Depreciation Machine Rent 1000 190.000 200.000 150.000 200.000 20.000 10.000 20.000 3000 570.000 600.000 600.000 660.000 60.000 10.000 20.000 Classify each cost as variable, fixed, or mixed cost! 4 Fathurrahman Ltd, accumulates the data below regarding mixed cost, using direct labor hours as the activity level Direct Labor Hours Total Cost January 9800 14.740.000 February 8500 13.250.000 March 7000 11.100.000 April 7600 12.000.000 May 8100 12.460.000 a. Compute the variable-cost and fixed-cost elements using high-low method b. Estimate the total cost if the company produces 7,409 units. 5 Winanda Electronics produces gaming keyboards. Below are the informations available for July 2023. Unit selling price of gaming keyboards 370.000 Unit variable costs 280.000 Total fixed costs 70.409.000 Units sold 1.000 a. Compute the unit contribution margin b. Prepare a CVP Income statement that shows both total and per unit amounts c. Compute Youn's break-even points in units d. Compute break-even point in sales using the contribution margin (CM) ratio. e. What is the margin of safety and the margin of safety ratio? 1. Prepare a CVP income statement for the break-even point that shows both total and per unit amounts 1.a Activity Cost Pools Cost Drivers Estimated Overhead Estimated Use of Cost Driver per Activity Activity Based Overhead Rates 1.b Gaming Chair Activity-Based Overhead Rates Estimated Use of Cost Drivers per Product Activity Cost Pools Office Chair Activity-Based Overhead Rates Estimated Use of Cost Drivers per Product Cost Assigned Cost Assigned 1.c Gaming Chair Office Chair Total Cost Assigned Total Units Produced Overhead Cost per Unit 2.a Ratih Interior Applied MOH Honu Interior Applied MOH Activity Cost Pools Cost Drivers Estimated Overhead Estimated Use of Cost Driver per Activity Based Activity Overhead Rates 2.b 2.c Ratih Interior Design Honu Audit Activities Cost Drivers Actual Use of Drivers Activity-Based Overhead Rates Cost Assigned 2.d Ratih Interior Design Honu Audit Traditional Costing ABC Revenue Expenses Direct Labor Applied Overhead Total Expense Operating Income Profit Margin 3 Type of Cost Direct Materials Direct Labor Manufacturing Utilities Indirect Materials Depreciation Machine Rent 4.a Change in Variable Cost Change in DL Hour in VC Unit Variable Cost Fixed Cost 4.b Units Produced Variable Cost Fixed Cost Total Cost 5.a Sales Variable Cost Contribution Margin 5.b Winanda Electronics CVP Income Statement Total Per Unit 5.c Selling Price Variable Cost Fixed Cost Required Unit Sold Required Unit Sold Roundup 5.d Unit Contribution Margin Contribution Margin Ratio Break Even Point Sales 5. Margin of Safety Margin of Safety Ratio 5.1 Wnanda Electronics CVP Income Statement Total Per Unit 1 Wahyuzan Inc produces two types of ergonomic chairs: Gaming Chair and Office Chair. Due to pandemic, Wahyuzan's demand for Office Chair grown significantly. It estimates production of 150000 units of Gaming Chair and 250000 units of Office Chair. Below are the following data relative with activity cost pools and the cost drivers for each cost pool. Gaming Chair Produced Office Chair Produced 150.000 250.000 Annual Overhead Data Estimated use of Cost Drivers per Product Gaming Chair Office Chair Activity Cost Pools Cost Drivers Estimated Overhead Estimated Use of Cost Drivers per Activity Ordering and receiving Chair Setup Assembling Inspecting and testing Purchase orders Setups Parts Tests 2.109.000 8.409.000 12.000.000 4.000.000 26.518.000 3.000 orders 2.500 setups 4.000.000 parts 30.000 tests 1.300 1.000 1.800.000 12.000 1.700 1.500 2.200.000 18.000 Using the data above: a. Prepare a schedule showing the computations of the activity-based overhead rates per cost driver b. Prepare a schedule assigning each activity's averhead cost to the two products c. Compute the overhead cost per unit for each product 2 Ratih Interior Design uses four activity pools to apply overhead to its project. Ratih Interior Design usually uses predetermined overhead rate to calculate applied overhead. This year, Ratih Interior Design decided to use activity-based costing to calculate applied overhead. Below are the relevant information conceming Ratih Interior Design for 2023. (1) Ratih Interior Design estimated $4,000,000 of annual revenue, $2,000,000 of annual direct labor costing, and uses 50% predetermined overhead rate based on direct labor costing (2) Ratih Interior Design records 140,000 of actual direct professional hours, and was billed an audit fee of $250,000 (revenue) for one of its client, Honu. (3) Under activity-based costing, Ratih Interior Design distributes Its estimated annual overhead costs to three activity cost pools in the table below. Activities Ratih Interior Design Overhead Budget Cost Drivers Estimated Overhead number of revision 250.000 square meters 350.000 direct labor hours 400.000 Initial Concept Formation Design Decorating Estimated Use of Cost Drivers per Activity 20 revisions 250.000 square meters 400 hours (4) The assignment of the individual overhead activity rates to the actual number of activities used in the performance of Honu audit results are in the table below Ratih Interior Design Honu Audit Activities Cost Drivers Actual Use of Drivers Initial Concept Formation number of revision 2 Design square meters 20409 Decorating direct labor hours 12 From the information above: a. Calculate Ratih Interior annual applied manufacturing overhead and Honu audit applied manufacturing overhead using traditional method! b. Using activity-based costing, calculate overhead rate for each cost pool c. Determined overhead allocated to Honu Audit based on activity-based costing d. Compare traditional costing and ABC in Honu Audit 3 Below are the information regarding PT Ibrahim total costs at two levels of production Direct Materials Direct Labor Manufacturing Utilities Indirect Materials Depreciation Machine Rent 1000 190.000 200.000 150.000 200.000 20.000 10.000 20.000 3000 570.000 600.000 600.000 660.000 60.000 10.000 20.000 Classify each cost as variable, fixed, or mixed cost! 4 Fathurrahman Ltd, accumulates the data below regarding mixed cost, using direct labor hours as the activity level Direct Labor Hours Total Cost January 9800 14.740.000 February 8500 13.250.000 March 7000 11.100.000 April 7600 12.000.000 May 8100 12.460.000 a. Compute the variable-cost and fixed-cost elements using high-low method b. Estimate the total cost if the company produces 7,409 units. 5 Winanda Electronics produces gaming keyboards. Below are the informations available for July 2023. Unit selling price of gaming keyboards 370.000 Unit variable costs 280.000 Total fixed costs 70.409.000 Units sold 1.000 a. Compute the unit contribution margin b. Prepare a CVP Income statement that shows both total and per unit amounts c. Compute Youn's break-even points in units d. Compute break-even point in sales using the contribution margin (CM) ratio. e. What is the margin of safety and the margin of safety ratio? 1. Prepare a CVP income statement for the break-even point that shows both total and per unit amounts 1.a Activity Cost Pools Cost Drivers Estimated Overhead Estimated Use of Cost Driver per Activity Activity Based Overhead Rates 1.b Gaming Chair Activity-Based Overhead Rates Estimated Use of Cost Drivers per Product Activity Cost Pools Office Chair Activity-Based Overhead Rates Estimated Use of Cost Drivers per Product Cost Assigned Cost Assigned 1.c Gaming Chair Office Chair Total Cost Assigned Total Units Produced Overhead Cost per Unit 2.a Ratih Interior Applied MOH Honu Interior Applied MOH Activity Cost Pools Cost Drivers Estimated Overhead Estimated Use of Cost Driver per Activity Based Activity Overhead Rates 2.b 2.c Ratih Interior Design Honu Audit Activities Cost Drivers Actual Use of Drivers Activity-Based Overhead Rates Cost Assigned 2.d Ratih Interior Design Honu Audit Traditional Costing ABC Revenue Expenses Direct Labor Applied Overhead Total Expense Operating Income Profit Margin 3 Type of Cost Direct Materials Direct Labor Manufacturing Utilities Indirect Materials Depreciation Machine Rent 4.a Change in Variable Cost Change in DL Hour in VC Unit Variable Cost Fixed Cost 4.b Units Produced Variable Cost Fixed Cost Total Cost 5.a Sales Variable Cost Contribution Margin 5.b Winanda Electronics CVP Income Statement Total Per Unit 5.c Selling Price Variable Cost Fixed Cost Required Unit Sold Required Unit Sold Roundup 5.d Unit Contribution Margin Contribution Margin Ratio Break Even Point Sales 5. Margin of Safety Margin of Safety Ratio 5.1 Wnanda Electronics CVP Income Statement Total Per Unit