Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

can someone solve this? Davis Company produces two hair dryers: regular and deluxe. The company has four activities: machining, engineering, receiving, and inspection. Information on

can someone solve this?

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

Davis Company produces two hair dryers: regular and deluxe. The company has four activities: machining, engineering, receiving, and inspection. Information on these activities and their drivers is given below. Regular Deluxe Total Units produced 140,000 420,000 Prime costs $12,040,000 $47,040,000 $59,080,000 Machine hours 140,000 700,000 840,000 Engineering hours 300 2,700 3,000 Receiving orders 400 1,200 1,600 Inspection hours 700 1,400 2,100 Overhead costs: Machining $8,400,000 Engineering 1,260,000 Receiving 336,000 Inspecting products 231,000 Required: 1. Calculate the four activity rates. Machining rate per machine hour Engineering rate per hour Receiving rate per order Inspecting rate per hour 2. Calculate the unit costs using activity rates. Round your answers to the nearest cent. Unit cost Regular per unit Deluxe per unit Calculate the overhead cost per unit. Round your answers to the nearest cent. Overhead Cost Regular per unit Deluxe per unit Calculate the overhead cost per unit. Round your answers to the nearest cent. Overhead Cost Regular per unit Deluxe per unit 3. If consumption ratios instead of activity rates were used to assign costs instead of activity rates, show the cost assignment for the inspection activity. Cost assignment Regular Deluxe Larsen, Inc., produces two types of electronic parts and has provided the following data: Part X12 Part YK7 Total Units produced 100,000 600,000 Direct labor hours 40,000 60,000 100,000 Machine hours 52,500 297,500 350,000 Number of setups 36 84 120 Testing hours 1,100 8,900 10,000 Number of purchase orders 440 3,560 4,000 There are four activities: machining, setting up, testing, and purchasing. Required: 1. Calculate the activity consumption ratios for each product. Round your answers to two decimal places. Consumption Ratios Overhead Activity Part X12 Part YK7 Activity Driver Machining Machine hours Setups Number of setups Inspecting products Testing hours Consumption Ratios Overhead Activity Part X12 Part YK7 Activity Driver Machining Machine hours Setups Number of setups Inspecting products Testing hours Purchasing Purchase orders 2. Calculate the consumption ratios for the plantwide rate (direct labor hours). Round your answers to two decimal places. Consumption Ratios Overhead Activity Part X12 Part YK7 Plantwide: Manufacturing

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_2

Step: 3

blur-text-image_3

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

More Books

Students also viewed these Accounting questions