Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Archie & Corporation manufactures two products: Tasty Bones and Gourmet Bones. Last year Archie had total FOH of $1,115,000 and it applies FOH using an

image text in transcribed
image text in transcribed
Archie & Corporation manufactures two products: Tasty Bones and Gourmet Bones. Last year Archie had total FOH of $1,115,000 and it applies FOH using an activity-based costing (ABC) system that allocates its factory overhead to four cost pools: Activity Cost Pool Activity Measure Estimated Total Cost Mixing Direct Labor Hours (DLH's) $ 120,000 Baking Oven Hours (OH'S) 900.000 Purchasing Purchase Orders (PO's) 50,000 Inspections Inspections 45,000 The estimated usage of each activity measure by product line is: Activity Measure DLH's Tasty Gourmet 1.000 OH's 2,000 4,000 6,000 PO'S 100 400 Inspections 20 80 Archie allocated $ to the Tasty Bones product line last year using ABC. Note: These facts are no different than the facts in the last problem Archie & Corporation manufactures two products: Tasty Bones and Gourmet Bones. Last year Archie had total FOH of 51,115,000 and it applies FOH using an activity-based costing (ABC) system that allocates its factory overhead to four cost pools Activity Cost Pool Activity Measure Estimated Total Cost - Mixing Direct Labor Hours (DLH'S) $ 120,000 Baking Oven Hours (OH'S 900,000 Purchasing Purchase Orders (POS) 50,000 Inspections Inspections 45.000 The estimated usage of each activity measure by product line is Activity Measure Tasty Gourmet DLH'S OH's 1,000 6,000 2.000 4,000 PO'S 100 400 Inspections 20 80 Estimated production and sales and direct material and direct labor costs are forecasted to be: Tasty Gourmet 100.000 80,000 Production/Sales units Selling Price per unit Direct material per unit Direct Labor per unit $18.00 $25.00 $1.50 $3.10 $0.25 $0.90 The gross profit per unit of Gourmet Bone sold iss O $14.81 (rounded) @ $21.00 $10.45 51455 $7.06 (rounded none of the choices are correct

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting

Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella

3rd Edition

0136946690, 978-0136946694

More Books

Students also viewed these Accounting questions

Question

Discuss the roles of metacognition in learning and remembering.

Answered: 1 week ago