Answered step by step
Verified Expert Solution
Link Copied!

Question

...
1 Approved Answer

Below I have attached 6 questions from my online cost accounting class. If someone would be so kindly to help me t would be greatly

Below I have attached 6 questions from my online cost accounting class. If someone would be so kindly to help me t would be greatly appreciated. The questions, along with the question data and information to correctly answer the questions are included.

image text in transcribed After reviewing the new activity-based costing system that Janis McGee has implemented at Joplin Industries's Port Arthur manufacturing facility, Kris Kristoff, the production supervisor, believes that he can reduce production costs by reducing the time spent on machine setups. He has spent the last month working with employees in the plant to change over the machines more quickly with the same reliability. He plans to produce 112,000 units of J25P and 46,000 units of J40X in the first quarter. He believes that with his more efficient setup routine, he can reduce the number of setup hours for both the J25P and the J40X products by 23 percent. (Refer to Exhibit 9.16) Required: (a Compute the amount of overhead allocated to the J25P and the J40X cameras ) for the first quarter using activity-based costing. Assume that all events are the same in the first quarter as in the third quarter except for the number of setup hours. Assume the cost of a setup hour remains at $900. Cathy, the manager of Cathy's Catering, Inc., uses activity-based costing to compute the costs of her catered parties. Each party is limited to 20 guests and requires 5 people to serve and clean up. Cathy offers two types of parties, an afternoon picnic and an evening formal dinner. The breakdown of the costs follows: Activities (and cost drivers) Advertising (parties) Planning (parties) Renting equipment (parties, guests) Obtaining insurance (parties) Afternoon Picnic $ $ $ $ 81 per party 68 per party 40 per party plus 12 per guest $230 per party Serving (parties, servers) $ 41 Formal Dinner $ 81 per party $102 per party $ 80 per party plus $ 23 per guest $380 per party per server per per server per $ 65 party party Preparing food (guests) $ 16 per guest $ 26 per guest Per party costs do not vary with the number of guests. Required: (a Compute the cost of a 20-guest afternoon picnic. ) (b Compute the cost of a 20-guest evening formal dinner. ) (c How much should Cathy charge for each guest for each type of party if she ) wants to cover her costs?(Round your answers to 2 decimal places.) Rodent Corporation produces two types of computer mice, wired and wireless. The wired mice are designed as low-cost, reliable input devices. The company only recently began producing the higher-quality wireless model. Since the introduction of the new product, profits have been steadily declining. Management believes that the accounting system is not accurately allocating costs to products, particularly because sales of the new product have been increasing. Management has asked you to investigate the cost allocation problem. You find that manufacturing overhead is currently assigned to products based on their direct labor costs. For your investigation, you have data from last year. Manufacturing overhead was $1,373,000 based on production of 310,000 wired mice and 99,000 wireless mice. Direct labor and direct materials costs were as follows: Wired Wireless Total Direct 1,035,00 401,00 1,436,00 $ $ $ labor 0 0 0 Material 689,00 1,439,00 750,000 s 0 0 Management has determined that overhead costs are caused by three cost drivers. These drivers and their costs for last year are as follows: Activity Level Cost Driver Numb er of product ion runs Qualit Costs Assigned $ Wirel Tot Wired ess al 660,000 45 10 55 570,000 11 19 30 y tests perfor med Shippi ng orders proces sed Tota l overhe ad 143,000 90 40 13 0 $ 1,373,000 Required: (a How much overhead will be assigned to each product if these three cost drivers ) are used to allocate overhead? What is the total cost per unit produced for each product? (Round "Total Cost Per Unit" to 2 decimal places.) (b How much overhead will be assigned to each product if direct labor cost is used ) to allocate overhead?What is the total cost per unit produced for each product? (Do not round intermediate calculations. Round "Overhead" to the nearest whole dollar and "Total Cost Per Unit" to 2 decimal places.) Doaktown Products manufactures fishing equipment for recreational uses. The Miramichi plant produces the company's two versions of a special reel used for river fishing. The two models are the M-008, a basic reel, and the M-123, a new and improved version. Cost accountants at company headquarters have prepared costs for the two reels for the most recent period. The plant manager is concerned. The cost report does not coincide with her intuition about the relative costs of the two models. She has asked you to review the cost accounting and help her prepare a response to headquarters. Manufacturing overhead is currently assigned to products based on their direct labor costs. For the most recent month, manufacturing overhead was $323,200. During that time, the company produced 14,700 units of the M-008 and 2,200 units of the M-123. The direct costs of production were as follows: M-008 Direct materials Direct labor M-123 Total $117,600$88,000$205,600 117,600 44,00 161,600 0 Management determined that overhead costs are caused by three cost drivers. These drivers and their costs for last year were as follows: Cost Driver Number of machinehours Number of productio n runs Number of inspectio ns Total overhead Costs $ 151,200 Activity Level M- MTotal 008 123 5,00 2,70 7,70 0 0 0 77,000 15 25 95,000 $ 10 30 35 65 323,200 Required: (a How much overhead will be assigned to each product if these three cost drivers ) are used to allocate overhead? What is the total cost per unit produced for each product? (Round your intermediate calculations and final answers to 2 decimal places.) (b How much of the overhead will be assigned to each product if direct labor cost is ) used to allocate overhead? What is the total cost per unit produced for each product? (Round "Total unit cost" to 2 We-Clean, Inc., is a home-cleaning service. It originally specialized in serving small residential clients but recently started contracting for work in large apartment and office buildings. Julie Lodge, the owner, believes that the commercial sector has more growth opportunities and is considering dropping the residential service. Twenty cleaning employees worked a total of 42,000 hours last year, 25,000 on residential jobs and 17,000 on commercial jobs. Wages were $14 per hour for all work done. Any materials used are included in overhead as supplies. All overhead is allocated on the basis of labor-hours worked, which is also the basis for customer charges. Because of increased competition for commercial accounts, Julie can charge $34 per hour for residential work, but only $27 per hour for commercial work. Required: (a If overhead for the year was $130,494, what were the profits of the commercial ) and the residential services using labor-hours as the allocation base? (Do not round intermediate calculations. Round "Profit" to the nearest whole dollar.) (b Overhead consists of costs of traveling, using equipment, and using supplies, ) which can be traced as follows: Activit Cost Driver Number Traveli of clients ng served Using Equipm equipm ent ent hours Area serviced Using in supplies square yards Cost y $ Cost Driver Volume Commer Residen cial tial 15,494 14 39,000 3,700 76,000 Total overhea d $ 47 2,300 140,000 50,000 130,494 Recalculate profits for commercial and residential services based on these activity bases. (Do not round intermediate calculations. Round "Profit" to the nearest whole dollar.) Isadore's Implements, Inc., manufactures pens and mechanical pencils often used for gifts. Overhead costs are currently allocated using direct labor-hours, but the controller has recommended an activity-based costing system using the following data: Cost Driver Setting Numb up er of Activity Cost $ 100,800 Cost Driver Volume Pencil Pens s 16 32 setups Numb Inspecti er of ng parts Numb Packing er of and boxes shipping shippe d Total overhead 29,000 52,500 $ 4 6 40,00 65,000 0 182,300 Required: (a Compute the amount of overhead to be allocated to each product under activity) based costing. (Do not round intermediate calculations. Round "Overhead" to the nearest whole dollar.) (b Compute the amount of overhead to be allocated to each product using labor) hours as the allocation base. Assume that the number of labor-hours required to assemble each box is 0.1 for pencils and 0.1 for pens and that 40,000 boxes of pencils and 65,000 boxes of pens were produced during the period.(Do not round intermediate calculations. Round "Overhead" to the nearest whole dollar.) Fundamentals of Cost Accounting 4th Edition Problem 1 Fundamentals of Cost Accounting 4th Edition Fundamentals of Cost Accounting 4th Edition Fundamentals of Cost Accounting 4th Edition Problem 2 Fundamentals of Cost Accounting 4th Edition Fundamentals of Cost Accounting 4th Edition Problem 3. Please plug in play the numbers you have and follow the solution guide below. Fundamentals of Cost Accounting 4th Edition Fundamentals of Cost Accounting 4th Edition Fundamentals of Cost Accounting 4th Edition Fundamentals of Cost Accounting 4th Edition Problem 4: Please plug in play the numbers you have and follow the solution guide below Fundamentals of Cost Accounting 4th Edition Fundamentals of Cost Accounting 4th Edition Fundamentals of Cost Accounting 4th Edition Fundamentals of Cost Accounting 4th Edition Problem 5. Please plug in play the numbers you have and follow the solution guide below. Fundamentals of Cost Accounting 4th Edition Fundamentals of Cost Accounting 4th Edition Problem 6 Please plug in play the numbers you have and follow the solution guide below Fundamentals of Cost Accounting 4th Edition That is all. Come and see me again

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Elementary Statistics

Authors: Robert R. Johnson, Patricia J. Kuby

11th Edition

9780538733502

Students also viewed these Accounting questions