Answered step by step
Verified Expert Solution
Question
1 Approved Answer
apter 4 olve the following exercise: Padres Inc. manufactures two different types of Tool Boxes. Traditional and Truck tool boxes. The Traditional Tool Box is
apter 4 olve the following exercise: Padres Inc. manufactures two different types of Tool Boxes. Traditional and Truck tool boxes. The Traditional Tool Box is a high volume product (60,000 units) while the Truck Tool Box is a low volume product (15,200 units). Both products require 3.5 hours of direct labor for completion. Therefore the total annual direct labor hours are 263,200 (3.5 x 75,200 units). Expected annual manufacturing overhead is $1,709,320. Thus, the predetermined overhead rate is $6.49 per direct hour. The direct materials cost per unit is $25.30 for the Traditional and $38.75 for the Truck. The direct labor cost is $17.50 per unit for both the Traditional and Truck Tool Boxes. The company's managers identified six activity cost pools and related cost drivers and accumulated overhead by cost pool as follows Instructions: Fill in the blanks. Round appropriately Expected Uses Expected Overhead Cost Pools Cost Drivers Overhead Use of co Cost Per Trod Truck Trod Truck Activity Estimated Expected S 91,380.00 335,000 Forming Machine hours s 365,800.00 35,000 215,000 120,000 27,0008,000 165,000 2,000 15,500 10,000 Receiving Pounds 526,200.00 217,000 Inspections!#of inspections 61,000.00 25,500 585,540.00 335,000 Assembly 1#of parts Painting Gallons Shipping Pounds Gallons s 73,400.000 5,2583.680 1,578 79,400.00 215,000 120,000 215,000 120,.000
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered 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