Answer question D) only!

A) C urrent co ting system charge overhead to predects based a direct laber cut wig single planter. What products w repertlar the precis here Overhead te perdoria) (100 000 16 = 160(5000x1600) (4.000-160,000 30000 1.000.000 300.000 55.00 MH Sept( +500 120 O .0000 410,000 h Rate (1000000 10.000 100.000 50.000 50.00 UH .140) 51.550.000 Materials (1000x11300 (93.000 1.550,000 -6%) W Testing (100,000 3 25.000 - 375.000 150.000 75.000-5.4) ewater Tre (300x10 .000 1.000.000 50.000 100.000-50.25) Ove Rehat O y Overaly Talent 51.000.000 55000 10000 100000 x 510 The company decides to compete predecessaiga ABC simplest only in the Production Department Orhead in Away will continue to be direct labor cost. The cost drivers sted for the with bi g her head Di Seperis , Direct laber , Ma d ing Material cutting T , W Wastewater greeted Duprecis a , Maskiner Shoping Weigh. W pedesta web ported the ABC were pled me that the production is dat Paari - shero Deprecat (100,000x1625.000 16200,000 ,000 $2.00) Ship (100 x 1025.000x1140,000) 7.000 100.000-5.05 Overhead A 5 00.000 100.000 0 .000 0.00 Please b y the w ay of the three The controller recently completed a ctive de r de wwing the weage allocate pred that the first stage les coste departmeals the stage e s t to products. The controller bares that the costs will be more talet, stage departallati casting. What is year for the presidy e were the labar benar te wete Any Depar ts What FE A) 3C's current cost accounting system charges overhead to products based on direct labor cost using a single plantwide rate. What product costs will it report for the two products if the current allocation system is used? XL-C XD 100001) Raw Material Direct Chor Production Derecho 300.00.4) Orhad 1306 Overhead Rate = (Production Overhead + Assembly Overhead) Total Direct Labor Cost -($1,000,000 + $500,000) [(100,000 x $10) + (25,000 x $10) -120% of direct labor costs B) The controller recently completed an executive education course de scribing the two-stage allocation procedure. Assume that the first stage allocates costs to departments and the second stage allocates costs to products. The controller believes that the costs will be more accurate if machine hours are used to allocate Production Department costs and labor hours are used to allocate Assembly Department costs. What product costs will be reported for the two products if the two-stage allo cation process is used? 750001 Proderi 04 A bby Ovh odation 13.00 Type here to search 400 Overhead- Assembly $10.00 Total Overhead Rate (production) = (100,000 x 16 = 160,000). (25,000 x 1.6-4,000) (4,000+160,000=200,000). (1,000,000/200,000= $5.00 MH) Overhead Rate (assembly)=(100,000 x 0.4= 40,000). (25,000 x 0.4=10,000). (500,000/50,000= $10.00 DLH) C) The company decides to compute product costs assuming an ABC sys- tem is implemented only in the Production Department. Overhead in Assembly will continue to be allocated based on direct labor cost. The cost drivers selected for the activity-based costing system are: (Over- head Item, Driver Supervision, Direct labor-hour's, Material handling, Material cost Testing, Testing hours, Wastewater treatment, Wastewater generated, Depreciation on equipment, Machine-hours, Shipping Weight). What product costs would be reported if this ABC system were implemented? Assume that the production mix and costs would remain as originally planned. Ship age te if $12.00 151400 Raw Material Direct Labor $200 Procation Direct Labor 800 A ly Tove Products Supervision 300 for 10700 130 Shappiots 005 - 0 X To Product Overhead Overhead Assembly 51000 Total Supervision=(100,000 x 0.1)+(25,000 x 0.1) = 12,500 hours (100,000/12500 $8.00) Materials Handling (100,000 x $12.00) + (25,000 x $14.00) = $1,550,000 (93,000/1,550,000=6%) Testing (100,000 x 3 + 25,000 x 3= 375,000) (150,000/375,000 $.40) . Wastewater Treatment=(100,000 x 10 + 25,000 x 0= 1,000,000) (250,000/1,000,000 $0.25) Depreciation=(100,000 x 1.6 +25,000 x 1.6=200,000) (400,000/200,000= $2.00) ing, Shipping (100,000 x 1.0+ 25.000 x 1.6= 140,000) (7,000/140,000= $.05) Overhead - Assembly=500,000/ [(100,000 x 0.4) +(25,000 x 0.4)) - $10.00 D) Please briefly discuss the advantages and disadvantages of the three cost allocation methods above, including traditional single plantwide rate cost allocation, two-stage departmental allocation, and activity-based costing. What is your suggestion for the president if you were the con- troller? Focus E DB-1 1215 PM A) C urrent co ting system charge overhead to predects based a direct laber cut wig single planter. What products w repertlar the precis here Overhead te perdoria) (100 000 16 = 160(5000x1600) (4.000-160,000 30000 1.000.000 300.000 55.00 MH Sept( +500 120 O .0000 410,000 h Rate (1000000 10.000 100.000 50.000 50.00 UH .140) 51.550.000 Materials (1000x11300 (93.000 1.550,000 -6%) W Testing (100,000 3 25.000 - 375.000 150.000 75.000-5.4) ewater Tre (300x10 .000 1.000.000 50.000 100.000-50.25) Ove Rehat O y Overaly Talent 51.000.000 55000 10000 100000 x 510 The company decides to compete predecessaiga ABC simplest only in the Production Department Orhead in Away will continue to be direct labor cost. The cost drivers sted for the with bi g her head Di Seperis , Direct laber , Ma d ing Material cutting T , W Wastewater greeted Duprecis a , Maskiner Shoping Weigh. W pedesta web ported the ABC were pled me that the production is dat Paari - shero Deprecat (100,000x1625.000 16200,000 ,000 $2.00) Ship (100 x 1025.000x1140,000) 7.000 100.000-5.05 Overhead A 5 00.000 100.000 0 .000 0.00 Please b y the w ay of the three The controller recently completed a ctive de r de wwing the weage allocate pred that the first stage les coste departmeals the stage e s t to products. The controller bares that the costs will be more talet, stage departallati casting. What is year for the presidy e were the labar benar te wete Any Depar ts What FE A) 3C's current cost accounting system charges overhead to products based on direct labor cost using a single plantwide rate. What product costs will it report for the two products if the current allocation system is used? XL-C XD 100001) Raw Material Direct Chor Production Derecho 300.00.4) Orhad 1306 Overhead Rate = (Production Overhead + Assembly Overhead) Total Direct Labor Cost -($1,000,000 + $500,000) [(100,000 x $10) + (25,000 x $10) -120% of direct labor costs B) The controller recently completed an executive education course de scribing the two-stage allocation procedure. Assume that the first stage allocates costs to departments and the second stage allocates costs to products. The controller believes that the costs will be more accurate if machine hours are used to allocate Production Department costs and labor hours are used to allocate Assembly Department costs. What product costs will be reported for the two products if the two-stage allo cation process is used? 750001 Proderi 04 A bby Ovh odation 13.00 Type here to search 400 Overhead- Assembly $10.00 Total Overhead Rate (production) = (100,000 x 16 = 160,000). (25,000 x 1.6-4,000) (4,000+160,000=200,000). (1,000,000/200,000= $5.00 MH) Overhead Rate (assembly)=(100,000 x 0.4= 40,000). (25,000 x 0.4=10,000). (500,000/50,000= $10.00 DLH) C) The company decides to compute product costs assuming an ABC sys- tem is implemented only in the Production Department. Overhead in Assembly will continue to be allocated based on direct labor cost. The cost drivers selected for the activity-based costing system are: (Over- head Item, Driver Supervision, Direct labor-hour's, Material handling, Material cost Testing, Testing hours, Wastewater treatment, Wastewater generated, Depreciation on equipment, Machine-hours, Shipping Weight). What product costs would be reported if this ABC system were implemented? Assume that the production mix and costs would remain as originally planned. Ship age te if $12.00 151400 Raw Material Direct Labor $200 Procation Direct Labor 800 A ly Tove Products Supervision 300 for 10700 130 Shappiots 005 - 0 X To Product Overhead Overhead Assembly 51000 Total Supervision=(100,000 x 0.1)+(25,000 x 0.1) = 12,500 hours (100,000/12500 $8.00) Materials Handling (100,000 x $12.00) + (25,000 x $14.00) = $1,550,000 (93,000/1,550,000=6%) Testing (100,000 x 3 + 25,000 x 3= 375,000) (150,000/375,000 $.40) . Wastewater Treatment=(100,000 x 10 + 25,000 x 0= 1,000,000) (250,000/1,000,000 $0.25) Depreciation=(100,000 x 1.6 +25,000 x 1.6=200,000) (400,000/200,000= $2.00) ing, Shipping (100,000 x 1.0+ 25.000 x 1.6= 140,000) (7,000/140,000= $.05) Overhead - Assembly=500,000/ [(100,000 x 0.4) +(25,000 x 0.4)) - $10.00 D) Please briefly discuss the advantages and disadvantages of the three cost allocation methods above, including traditional single plantwide rate cost allocation, two-stage departmental allocation, and activity-based costing. What is your suggestion for the president if you were the con- troller? Focus E DB-1 1215 PM