Question
9 080 Kitchen Supply in manufactures three types of constand, der er to predetermined bed on desbor hours A consultare recently wested that the company
18 9 OHS Required: (1) Computea predetermined overhead rate for year for ench cost verwung the estimated costs and estimated cost onverunt prepared by the consultant (2) Computea predetermined rate for you 2 mg direct labor hours as the location bete b. Compute the production costs for each product for January ng direct labor hours at the con base and the predetermined rate compuedin requirement (2) c. compute the production costs for each product for January using the costres recommended by the content and the predetermined to computed in requirement (Note: Do not assume that total overhead applied to products in Jersey wil be the same for activity based cooting as it was for the labor hour besed locoon : Complete this question by entering your answers in the tabs below Rele HQAI HAR Reg hel Computer determined veadra e retorech casting themed code cont driver prepared by the consultant (Rody Rale per Penger Suno Harga Line Petry Bernd > Help 9 Kitchen Supply, Inc. (KSI), manufactures three types of fatware Institutional Standard and silver it applies indrect costs according to a predetermined rate based on direct labor-hours. A consultant recently suggested that the company swech to an act based costing system and prepared the following cost estimates for year 2 for the recommended cost overs 083 points 8 2234 Cest Deiver Number of orders umber of production Pounds of satarials used Activity Processing orders Setting up production Handling waterials Machine depreciation and maintenance Performing quality control Packing Total stimated cost Estatet C 140,00 153. 20, E cost Direct 2eurders 11. punde Shipped Machinhos Number of inspections Number of units 11, 347, 54.400 110.000 17,0 parti 4. Book In addition, management estimated 7100 direct labor nours for year 2 Assume that the following cost driver volumes occurred in January, year 2 o References D Institutional 1. 36.00 20 1 Standard 22. 124, . Mer of units produced Direct suters costs Direct labor. hours Nuber of orders Number of production en Pounds of storial Machours her of inspections tripped 13. 570 1.30 11 23 ninho 570 130 Be Number of inspections Units shipped 63,000 22,00 2,000 Actual labor costs were $15 per hour nces Required: a. (1) Compute a predetermined overhead rate for year 2 for each cost driver using the estimated costs and estimated cost driver units prepared by the consultant (2) Compute a predetermined rate for year 2 using direct labor-hours as the allocation base. b. Compute the production costs for each product for January using direct labor-hours as the allocation base and the predetermined rate computed In requirement (2) c. Compute the production costs for each product for January using the cost drivers recommended by the consultant and the predetermined rates computed in requirement a. (Note: Do not assume that total overhead applied to products in January will be the same for activity-based costing as it was for the labor-hour-based allocation) Complete this question by entering your answers in the tabs below. Rea A1 Reg A2 Reg Rec Prey 9 af 12 HI Next > 9 080 Kitchen Supply in manufactures three types of constand, der er to predetermined bed on desbor hours A consultare recently wested that the company witch to any bed costing system and prepared the following contestimates for year for the recommended code tar AL BER, 200 SHA 23, Han serial of trial wat IN Hachette lace achine 17. 1. Perforsing wality control womportam 14.48 48 pm 110 Tatat inte tast . 0 In adamon management esmated 700 direct labor hours for your 2 Assume that the following cost driver volumes occurred in January year 2 . of Direct stalo Director TO Futus 23 2, JA Actuabor cost were $15 Derhout Required: (1) Computea predetermined over te for year 2 forster using costs and more
18 9 OHS Required: (1) Computea predetermined overhead rate for year for ench cost verwung the estimated costs and estimated cost onverunt prepared by the consultant (2) Computea predetermined rate for you 2 mg direct labor hours as the location bete b. Compute the production costs for each product for January ng direct labor hours at the con base and the predetermined rate compuedin requirement (2) c. compute the production costs for each product for January using the costres recommended by the content and the predetermined to computed in requirement (Note: Do not assume that total overhead applied to products in Jersey wil be the same for activity based cooting as it was for the labor hour besed locoon : Complete this question by entering your answers in the tabs below Rele HQAI HAR Reg hel Computer determined veadra e retorech casting themed code cont driver prepared by the consultant (Rody Rale per Penger Suno Harga Line Petry Bernd > Help 9 Kitchen Supply, Inc. (KSI), manufactures three types of fatware Institutional Standard and silver it applies indrect costs according to a predetermined rate based on direct labor-hours. A consultant recently suggested that the company swech to an act based costing system and prepared the following cost estimates for year 2 for the recommended cost overs 083 points 8 2234 Cest Deiver Number of orders umber of production Pounds of satarials used Activity Processing orders Setting up production Handling waterials Machine depreciation and maintenance Performing quality control Packing Total stimated cost Estatet C 140,00 153. 20, E cost Direct 2eurders 11. punde Shipped Machinhos Number of inspections Number of units 11, 347, 54.400 110.000 17,0 parti 4. Book In addition, management estimated 7100 direct labor nours for year 2 Assume that the following cost driver volumes occurred in January, year 2 o References D Institutional 1. 36.00 20 1 Standard 22. 124, . Mer of units produced Direct suters costs Direct labor. hours Nuber of orders Number of production en Pounds of storial Machours her of inspections tripped 13. 570 1.30 11 23 ninho 570 130 Be Number of inspections Units shipped 63,000 22,00 2,000 Actual labor costs were $15 per hour nces Required: a. (1) Compute a predetermined overhead rate for year 2 for each cost driver using the estimated costs and estimated cost driver units prepared by the consultant (2) Compute a predetermined rate for year 2 using direct labor-hours as the allocation base. b. Compute the production costs for each product for January using direct labor-hours as the allocation base and the predetermined rate computed In requirement (2) c. Compute the production costs for each product for January using the cost drivers recommended by the consultant and the predetermined rates computed in requirement a. (Note: Do not assume that total overhead applied to products in January will be the same for activity-based costing as it was for the labor-hour-based allocation) Complete this question by entering your answers in the tabs below. Rea A1 Reg A2 Reg Rec Prey 9 af 12 HI Next >
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started