CALCULATOR PRINTER VERSION BACK NEXT Handling materials 10.3 per move Production 2.11 per D/L hour Setting up machines 82 per setup Inspecting 20 per inspection $ Inventory control 0.77 per component Utilities 5 per sq. ft. Click if you would like to show Work for this question: Open Show Work SHOW SOLUTION SHOW ANSWER LINK TO TEXT LINK TO TEXT Attempts: 2 of 3 used (62) Caluciate total overhead assigned under ABC Total overhead assigned Click if you would like to Show Work for this question: Open Show Work LINK TO TEXT LINK TO TEXT Attempts: 0 of 3 used SAVE FOR LATER SUBMIT ANSWER The parts of this question must be completed in order. This part will be available when you complete the part above. Purchasing $74,400 Handling materials 82,400 Production (cutting, milling, finishing) 211,000 Setting up machines 102,500 Inspecting 120,000 Inventory control (raw materials and finished goods) 129,360 Utilities 450,000 Total budgeted overhead costs $1,169,660 For the last 4 years, Shaker Stairs Co. has been charging overhead to products on the basis of machine hours. For the year 2017, 100,000 machine hours are budgeted. Jeremy Nolan, owner-manager of Shaker Stairs Co., recently directed his accountant, Bill Seagren, to implement the activity-based costing system that he has repeatedly proposed. At Jeremy Nolan's request, Bill and the production foreman identify the following cost drivers and their usage for the previously budgeted overhead cost pools. Expected Use of Activity Cost Pools Cost Drivers Cost Drivers Purchasing Number of orders 600 Handling materials Number of moves 8,000 Production (cutting, milling, finishing) Direct labor hours 100,000 Setting up machines Number of setups 1,250 Inspecting Number of inspections 6,000 Inventory control (raw materials and finished goods) Number of components 168,000 Square feet occupied 90,000 Steve Hannon, sales manager, has received an order for 250 stairways from Community Builders, Inc, a large housing development contractor. At Steve's request, Bill prepares cost estimates for producing components for 250 stairways so Steve can submit a contract price per stairway to community Builders. He accumulates the following data for the production of 250 stairways Direct materials $104,300 Direct labor $112.800 Machine hours 14,900 Direct labor hours 5,600 Number of purchase orders 60 Number of material moves 800 Number of machine setups 100 Number of inspections 450 Number of components 16,000 Number of square feet occupied 8,000 Compute the predetermined overhead rate using traditional costing with machine hours as the basis. (Round answer to 2 decimal places, eg. 12.25.) Predetermined overhead rate 11.6967 per machine hour Click if you would like to Show Work for this question: Open Show Work SHOW SOLUTION SHOW ANSWER LINK TO TEXT Attempts: 1 of 3 used Your answer is correct What is the manufacturing cost per stairway under traditional casting? (Round answer to 2 decimal places, e.g. 12.25.) Cost per stairway 1565.52 Click if you would like to show Work for this question: Open Show Work SHOW SOLUTION SHOW ANSWER LINK TO TEXT Attempts: 1 of 3 used (ci) Your answer is correct. Calculate activity-based overhead rate for each activity. (Round answers to 2 decimal places, e.g. 12.25.) Activity Overhead Rate Purchasing 124 per order
