5 art 2012 Production Exercise 4-8 (Algo) Computing ABC Product Costs (L04-2, L04-3) The following information applies to the questions displayed below) Performance Products Corporation makes two products, titanium Rims and Posts Data regarding the two products follow Direct Labor Annual 18,000 units 0.70 77,000 units Additional information about the company follows: a Rims require $14 in direct materials per unit, and Posts require $11. b. The direct labor wage rate is $15 per hour. Rims are more complex to manufacture than Posts and they require special equipment, d. The ABC system has the following activity cost pools 14 Hours per unit 0.40 Rims Posts Activity Cost Pool Machine setups Special processing General factory Activity Measure Number of setups Machine hours Direct lobor hours Estimated Activity Estimated Overhead cost Posts $39.030 120 $147,640 7.000 5.576,000 53,000 Total 200 2.000 Exercise 4-8 (Algo) Part 2 2. Determine the unit product cost of each product according to the ABC system (Do not round Intermediate calculations. Round your final answers to 2 decimal places.) 5 Additional Information about the company follows: a Rims require $14 in direct materials per unit, and Posts require 511 b. The direct labor wage rate is $15 per hour c. Rims are more complex to manufacture than Posts and they require special equipment. d. The ABC system has the following activity cost pools: of 2 Estimated Activity Rins Posts 80 Activity Cost Pool Machine setups Special processing General factory 120 Estimated Overhead Cost $ 30,000 $147,640 $ 576,000 Activity Measure Number of setups Machine-hours Direct labor-hours Total 200 2.000 61,100 2.000 7,200 53,99 nos Exercise 4-8 (Algo) Part 2 2. Determine the unit product cost of each product according to the ABC system. (Do not round intermediate calculations. Round your final answers to 2 decimal places.) Unit product cost of Rims Unit product cost of Posts 4 1 of 2 Exercise 4-8 (Algo) Computing ABC Product Costs [LO4-2, L04-3] [The following information applies to the questions displayed below.) Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow, Direct Labor Annual 18,000 units Posts 77,000 units Additional information about the company follows: a. Rims require $14 in direct materials per unit, and Posts require $11. b. The direct labor wage rate is $15 per hour, c. Rims are more complex to manufacture than Posts and they require special equipment. d. The ABC system has the following activity cost pools: Rims Production Hours per unit 0.40 0.70 Estimated Activity Activity Cost Pool Machine setups Special processing General factory Activity Measure Number of setups Machine-hours Direct labor hours Estimated Overhead Cost $ 30,030 $147,840 $ 576,000 Rims 120 2,000 7,200 Posts 80 Total 200 2,000 61,100 53.900 4 Estimated Activity Activity Cost Pool Machine setups Special processing General factory Posts BO Estimated Overhead Cost $ 30,030 $ 147,840 $ 576,608 Activity Measure Number of setups Machine-hours Direct labor-hours Rims 120 2,000 7,200 Total 200 2,000 61,100 Part 1 of 2 53,900 2.14 points Exercise 4-8 (Algo) Part 1 Required: 1. Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal places.) Answer is complete and correct. Activity Cost Pool Machine setups Special processing General factory Activity Rate $ 150.15 per setup $ 73.92 $ 9.43 per DLH per MH apter 4 Gradect Homework Check my work mode : This shows what is correct or incorrect for the work you have completed so fat te does 3 Exercise 4-5 (Algo) Assigning Overhead to Products in ABC (L04-2, L04-3) Sultan Company uses an activity based costing system. At the beginning at the year, the ceimpany made the following estima cost and activity for its five activity cost pools pected Activity Control Owerhead Cast Activity Lihor relate Direct leur 30.000 10.000 Purchase before 11. 212 and Parts types $9,500 10 types Boarding bers Cal factory Machine hours $ 240, 1.500 Required: 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 Cout Poot L'aberrated Purchase orders (orders Parts manat art types) Bandchi() Cral factory ped att Product Product 34,700 51 35 14 15 590 7. . 2.000 Using the ABC data, determine the total amount of overhead cost assigned to each product re to search O I 3 5 6 8 W E R P S F G 3 214 ponts Exercise 4-5 (Algo) Assigning Overhead to Products in ABC (L04-2, L04-3] Sultan Company uses an activity based costing system. At the beginning of the year, the company made the following estimates of cost and activity for its five activity cost pools: C#pected Activity Cost Pool Activity Measure Overhead Cost Expected activity Labor related Direct Labur hours $ 180,000 18,000 OR Purchase orders Number of orders $ 11,935 217 orders Parts management Number of art types 79,50 106 part types Board etching Number of boards $ 53,000 1,5 barda General factory Machine-hours $ 200,500 18,500 Required: 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 Forected activity Product A Product Product Product Laborreluted (DLH) 5,400 24,700 1.00 4,100 Purchase orders (orders) 51 35 40 Partant (part types) 35 14 42 15 Board etching boards) 59 730 540 a General factory (19) 2.600 8,600 2,000 Using the ABC data determine the total amount of overhead cost assigned to each product F 3 590 2,600 730 8,600 Board etching (boards) 540 General factory (MH) 2,600 Using the ABC data, determine the total amount of overhead cost assigned to each product. 5,300 14 ints Answer is complete and correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the activity rate for each of the activity cost pools. Activity Cost Pool Activity Rate Labor-related $ 10 per DLH Purchase orders $ 55 per order Parts management $ 750 per part type Board etching S 50 per board General factory S 13 per MH Requited Required 2 > 3 Board etching (boards) General factory (PH) Using the ABC data, determine the total amount of overhead cost assigned to each product: 590 2,600 730 8,500 540 2,000 5,300 214 Soints Answer is complete and correct. Complete this question by entering your answers in the tabs below. Required: Required 2 Using the ABC data, determine the total amount of overhead cost assigned to each product Overhead Overhead Overhead Overhead Cost Cost Activity Cost Pool Cost Cost Assigned Assigned Assigned Assigned Product A Product B Product C Product Labor-rolatod (DLHS) S 54,000 247.000s 38,000 s 41,000 Purchase orders (ots 2805 1925 2040 4505 Parts management (part types) 20.250 10.500 31.500 11.250 Board etching (boards) 29 500 36,500 27.000 0 General factory (MH) 33 800 111 800 20.000 00 000 Total 5 146.355 s 407 725 S 125.140 is 125,715