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Answer with the blanks in blue. Thank You! Activity-Based Costing Steampunk Corporation has the following predicted indirect costs and cost drivers for 2019 for the
Answer with the blanks in blue. Thank You!
Activity-Based Costing Steampunk Corporation has the following predicted indirect costs and cost drivers for 2019 for the given activity cost pools: Fabrication Finishing Department Department Cost Driver Maintenance $ 30,000 $ 15,000 Machine hours Materials handling 45,000 22,500 Material moves Machine 105,000 7,500 Machine setups Inspections 37,500 Inspection hours Total $ 180,000 $ 82,500 The following activity predictions were also made for the year: Fabrication Department Machine hours 5,000 Materials moves 1,500 Machine setups 350 Inspection hours Finishing Department 2,500 750 25 500 It is assumed that the cost per unit of activity for a given activity does not vary between departments. Steampunk's president, Abner Punk, is trying to evaluate the company's product mix strategy regarding two of its product models, sw100 and SG150. The company has been using a companywide overhead rate based on machine hours but is considering switching to either department rates or activity-based rates. The production manager has provided the following data for the production of a batch of 100 units for each of these models: SW100 SG150 Direct materials cost 10,000 15,000 Direct labor cost 4,000 3,000 Machine hours (Fabrication) 250 350 Machine hours (Finishing) 100 50 Materials moves 20 40 Machine setups 5 10 Inspection hours 15 30 Required a. Determine the cost of one unit each of SW100 and SG150, assuming a company-wide overhead rate is used based on total machine hours. b. Determine the cost of one unit of SW100 and SG150, assuming department overhead rates are used. Overhead is assigned based on machine hours in both departments. Determine the cost of one unit of SW100 and SG150, assuming activity-based overhead rates are used for maintenance, materials handling, machine setup, and inspection activities. d. Comment on the results of these cost calculations. C. B C D E F G H I J K L M N P Q R S V W X A 42 43 a. 44 45 d. Manufacturing overhead Machine hours Plantwide overhead rate Following is a summary of product costs for SW100 and SG150 assigning overhead costs based on a plant-wide rate, department SW100 SG150 SW100 SG150 Plant-wide rates Department rates Activity rates Product costs per batch Direct materials Direct labor Manufacturing overhead Total cost per batch Number of units per batch Cost per unit Fabrication Finishing 46 47 48 49 50 51 52 53 54 55 56 b. 57 58 59 59 60 61 62 63 64 CE 65 cc bb 67 68 68 69 70 Manufacturing overhead Machine hours Plantwide overhead rate SW100 SG150 Product costs per batch Direct materials Direct labor Manufacturing overhead Fabrication Finishing Total cost per batch Number of units per batch Cost per unit Amount Activity level Overhead rate 71 " 72 c. 12 73 74 Overhead pool: Maintenance Materials handling Machine Inspections SW100 SG150 75 76 77 78 79 80 81 O 82 83 84 Product costs per batch Direct materials Direct labor Manufacturing overhead Maintenance Materials handling Machine wachine Inspections Total cost per batch Number of units per batch Cost per unit 02 85 86 87 88 89 90 91Step by Step Solution
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