Answered step by step
Verified Expert Solution
Question
1 Approved Answer
All i need is the F 1 and 2 section please P18-1B VideoPlus, Inc. manufactures two types of DVD players, a deluxe model and a
All i need is the F 1 and 2 section please
P18-1B VideoPlus, Inc. manufactures two types of DVD players, a deluxe model and a standard Overhead model. Annual production is 50,000 units for the deluxe and 20,000 units for the standard Total Unit Cost Both require 2 hours of direct labor for completion. Therefore, total annual direct labor hours are 140,000 [2 hrs. x (20,000 +50,000). (b) computation of A-B Expected annual manufacturing overhead is $1,050,000. Thus, the predetermined overhead rate is $7.50 ($1,050,000 140,000) per direct labor hour. Activity Cost Poo The direct materials cost per unit is $42 (deluxe) and $11 (standard) model Purchasing The direct labor cost is $18 per unit for both the deluxe and standard models. Receiving The company's managers identified six activity cost pools and related cost drivers and accumulated overhead by cost pool as follows Assembling Testing Expected Use of Drivers by Product Finishing Estimated Expected Use Overhead of Cost Drivers Activity Cost Pool Cost Driver Standard Deluxe Packing&Shipping Purchasing Receiving Assembling Testing Finishing Packing and shipping S 126,000 30.000 444,000 115.000 140,000 195.000 $1.050.000 400 20,000 14,000 23.000 70.000 80.000 100 4,000 20,000 10,000 20,000 18,000 300 16,000 54,000 13,000 Orders Pounds Number of parts Number of tests T (c) Units Pounds 50.000 62.000 Activity Cost Pools Expecte Use of Driv Instructions Purchasing 100 (a) Under traditional product costing, compute the total unit cost of both products Receiving 4,000 Prepare a comparative schedule of the individual costs by product (see page 841) Assembling 20,000 (b) Under ABC, prepare a schedule showing the computations of the activity-based overhead rates (per cost driver) Testing 10,000 Finishing 20,000 (c) Prepare a schedule assigning each activity's cost pool to each product based on the use of cost drivers. (Include a computation of overhead cost per unit, rounding to the nearest cent.) Packing & Shipping Total Costs 18,000 (d) Compute the total cost per unit for each product under ABC Assigned (e) Classify each of the activities as a value-added activity or a non-value-added activity. Units Produced ) Comment on (1) the comparative overhead cost per unit for the two products under ABC, and 2) the comparative total costs per unit under traditional costing and ABC Overhead Cost Per Unit Finishing Packing&Shipping (n Don't forget this:_ (see answers below for guidance) (1) (2) (c) Rece Form Asse Testin Paintin Packin Total Units OverheStep 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