A company produces two products, Product A, which sells for $4,800 per unit, and Product B,...
Get step-by-step solutions with AI-powered insights and expert guidance to help you understand core concepts.
Question:
Transcribed Image Text:
A company produces two products, Product A, which sells for $4,800 per unit, and Product B, which sells for $9,600 per unit, using three different activities: Design, which uses engineering hours as the cost driver; Machining, which uses machine hours a the cost driver; and Inspection, which uses the number of batches as the cost driver. The cost of each activity and usage of the cost drivers are as follows: Usage by Usage by Activity Pool (Driver) Cost of Pool Design (engineering hours) Machining (machine hours) Inspection (Batches) $ 1,500,000 5,000,000 300,000 Product A 590 3,520 72 Product B 410 4,480 48 The company manufactures 13,060 units of Product A and 7,070 units of Product B per month. Each unit of Product A uses $120 of direct materials and $580 of direct labor, while each unit of Product B uses $940 of direct materials and $540 of direct labor. Required: a. Calculate the Design activity proportions for Products A and B. b. Calculate the Machining activity proportions for Products A and B. c. Calculate the Inspection activity proportions for Products A and B. d. Determine the indirect costs assigned to Product A. e. Determine the indirect costs assigned to Product B. Complete this question by entering your answers in the tabs below. A company produces two products, Product A, which sells for $4,800 per unit, and Product B, which sells for $9,600 per unit, using three different activities: Design, which uses engineering hours as the cost driver; Machining, which uses machine hours a the cost driver; and Inspection, which uses the number of batches as the cost driver. The cost of each activity and usage of the cost drivers are as follows: Usage by Usage by Activity Pool (Driver) Cost of Pool Design (engineering hours) Machining (machine hours) Inspection (Batches) $ 1,500,000 5,000,000 300,000 Product A 590 3,520 72 Product B 410 4,480 48 The company manufactures 13,060 units of Product A and 7,070 units of Product B per month. Each unit of Product A uses $120 of direct materials and $580 of direct labor, while each unit of Product B uses $940 of direct materials and $540 of direct labor. Required: a. Calculate the Design activity proportions for Products A and B. b. Calculate the Machining activity proportions for Products A and B. c. Calculate the Inspection activity proportions for Products A and B. d. Determine the indirect costs assigned to Product A. e. Determine the indirect costs assigned to Product B. Complete this question by entering your answers in the tabs below.
Expert Answer:
Answer rating: 100% (QA)
a Journal Entries i Opening Entries of T Lee on 1 April 2007 To record the acquisition of premises o... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
The following information is provided for Techno-World, a company specializing in providing Internet technology assistance for clients. 1. perform a horizontal analysis of this balance sheet. 2. Then...
-
Company K has two operating departments, Fabrication and Finishing. In addition, the company has two supporting departments. The Power department provides electricity to all departments, whereas the...
-
1. A firm consists of 600 acres of land, of which 500 acres will be planted with corn, soybeans, and wheat according to this condition: -At least half of the planted acreage should be in corn - No...
-
Prepare journal entries for each of the following transactions: 1. Purchase equipment in exchange for cash of $22,400. 2. Provide services to customers and receive cash of $5,100. 3. Pay the current...
-
Suppose you are a change agent and are planning to introduce a bottom-up change in an organization. Which implementation tactics are likely to give you the most effective results, with less...
-
The students in a statistics class were asked if they could be a good random number generator. Each student was asked to write down a single digit from 0 through 9. The data were collected starting...
-
Company S has 4,000 shares outstanding and a total stockholders equity of $200,000. It is about to issue 6,000 new shares to the prospective parent company. The shares will be sold for a total of...
-
Refer to the Cox Cable and Wire Company case. In the role of Meredith, design a spreadsheet with which to find a machine schedule and a corresponding inventory and shipment schedule that meets...
-
3. Which of the following statements is true? a. The component parts available for future requisition into the process of manufacturing finished units of product are called available parts. b. Raw...
-
The COVID-19 pandemic affected companies in the food industry in unique ways, particularly during 2020. Ruth's Hospitality Group (Ticker: RUTH) develops and operates fine dining restaurants under the...
-
The original cost of an inventory item is above the replacement cost. The inventory item's replacement cost is above the net realizable value. Under the lower of cost or market method, the inventory...
-
United States Historyassassination of Martin Luther King, Jr.
-
United States History-Burr-Hamilton duel duel, Weehawken, New Jersey, United States [1804]
-
United States HistoryBattle of Gettysburg American Civil War [1863] When and where was the Battle of Gettysburg fought?
-
United States History - United States presidential election of 1968 United States government
-
Salem witch trials American history What caused the Salem witch trials? How many people were killed during the Salem witch trials?
-
Justify each of the projection in the 5-year sales forecast (image below) based on the following factors: a. Economic conditions b. Changes in laws and policies c. Industry changes d. Product changes...
-
How does Kant answer Humes bundle theory of self? Do you think he is successful?
-
Distinguish between licensing and franchising. What are the main types of franchises? LO.1
-
Define and distinguish the following contractual entry strategies: build-operate-transfer, turnkey projects, management contracts, and leasing. LO.1
-
Ethical Dilemma: You are the president of Dynamic Publishing, a firm that publishes textbooks. During an overseas trip, you assess the prospects for marketing Dynamics textbooks abroad. Upon visiting...
Study smarter with the SolutionInn App