B D E F J M N o Q R Name ACC 2302 - Lab #1: Chapter 18 (ABC Costing) Use cell references/formulas in highlighted cells The Hitt/Kingston Corporation produces three products: Product X, Product Y and Product Z. Direct Labor: $20 per hour is the estimated direct labor cost. Manufacturing Overhead: $1,850,000 estimated total cost Products Number of units to be produced Number of machine hours expected to be used Number of direct labor hours expected to be used X 30,000 2,700 20,000 20,000 3.200 7,500 Z 10.000 2,200 3,000 Total 60,000 8,100 30,500 Part 1: calculate the total cost of producing each product and the average cost per unit allocating MOH as described below. Hint: First-calculate the overhead application rate(s). Total Direct Materials Used Total Direct Labor Cost Allocated amount of MOH applied using direct labor hours $1,100,000 $400,000 $480,000 $150,000 $325,000 $60,000 $1,905,000 $610,000 Overhead application rate using DL hours. X UTF-8"Lab%203%20-%20Chapter%2018%20-%20ABC%20Costing%20problem.xlsx Download Download Share File Edit Insert Format Help @a Calibri 11 B U 5 . f B D F G H | K L M N O P. Q R 20 Overhead application rate using DL hours. 21 Allocated amount of MOH applied using direct labor hours as the factory-wide cost driver Total Cost 22 23 24 Average cost per unit 25 26 Part 2: calculate the total cost of producing each product and the average cost per unit allocating MOH as described below. 27 28 29 $1,100,000 $400,000 $480,000 $ 150.000 $325,000 $60,000 $1,905,000 $610,000 30 31 Total Direct Materials Used Total Direct Labor Cost Allocated amount of MOH applied using machine hours as the factory-wide cost driver Total Cost Overhead application rate using Machine hours 32 33 34 35 Average cost per unit 36 37 Part 3: You decide to see if using activity-based costing will provide a different, perhaps more accurate result for the average cost of producing each unit of product. Calculate the total cost of producing each product and the average cost per unit allocating MOH as described below. 38 Sheet1 X UTF-8"Lab%203%20-%20Chapter%2018%20-%20ABC%20Costing%20problem.xlsx Download Download Share File Edit Insert Format Help @a Calibri 11 B US + 30 f A B D F G H 1 J L M N O Q R 37 Part 3: You decide to see if using activity-based costing will provide a different, perhaps more accurate result for the average cost of producing each unit of product. 38 Calculate the total cost of producing each product and the average cost per unit allocating MOH as described below. 39 40 You get the following information about the overhead costs: 41 Estimated amount of Estimated 42 Activity Cost driver cost driver used for Total Amount of 43 Product Product Y Product Z Overhead 44 45 Setup of machine # of setups 120 80 50 250 $300,000 Overhead application rate for machin 46 Drilling # of machine hours 2,700 3,200 2,200 8100 $910,000 Overhead application rate for drilling 47 Assembly # of direct labor hour 20000 7500 3000 30500 $425,000 Overhead appliation rate for assembly 48 Inspection # of inspections 50 30 20 100 $215,000 Overhead application rate for inspecti 49 $1,850,000 50 51 Total Direct Materials Used $1,100,000 $480,000 $325,000 $1,905,000 52 Total Direct Labor Cost $400,000 $ 150,000 $60,000 $610,000 53 Allocated MOH: 54 Setup of machines 55 Drilling Sheet1 $400,000 $150,000 $60,000 $610,000 52 Total Direct Labor Cost 53 Allocated MOH: 54 Setup of machines 55 Drilling 56 Assembly 57 Inspection 58 Total Allocated MOH 59 60 Total Costs 61 62 Average Cost per unit
