Question
Carbonifera produces two products: a Seeder and a Cruncher. Expected production volumes for the Seeder are 2,000 units and for the Cruncher they are 1,500
Carbonifera produces two products: a Seeder and a Cruncher. Expected production volumes for the Seeder are 2,000 units and for the Cruncher they are 1,500 units. Manufacturing overheads are estimated based on the amount of the cost-driving activity. Carbonifera estimates total costs of $100,000 for these activities and the total use for each product as follows: Using the above information please answer the following questions. Note: due to the fact that the question may be shuffled, please pay attention to the logical flow of the questions. You will need to solve for the "rate" first, and then proceed to calculate the MOH. ABC costing: calculate the activity overhead rate for assembly (rate per hour).
Q1 Standard costing: compute the predetermined overhead rate using DL hours as the cost driver (i.e., rate per DLH)
Q2 ABC costing: calculate the activity overhead rate for machining (rate per hour).
Q3 ABC costing: calculate the MOH per unit for the Seeder using activity-based costing.
Q4 Standard costing: calculate the MOH per unit for the Seeder using only DL hours as the cost driver.
Carbonifera produces two products: a Seeder and a Cruncher. Expected production volumes for the Seeder are 2,000 units and for the Cruncher they are 1,500 units. Manufacturing overheads are estimated based on the amount of the cost-driving activity. Carbonifera estimates total costs of $100,000 for these activities and the total use for each product as follows: Seeder Activity Measure Assembly Machining Cost Driver DL hrs Est. OH Cost $40,000 $60,000 Expected Activity Level, Total Cruncher 6,000 4,500 3,000 4,500 machine hrs Using the above information please answer the following questions. Note: due to the fact that the question may be shuffled, please pay attention to the logical flow of the questions. You will need to solve for the "rate" first, and then proceed to calculate the MOH. ABC costing: calculate the activity overhead rate for assembly (rate per hour). Choose... Standard costing: compute the predetermined overhead rate using DL hours as the cost driver (i.e., rate per DLH) Choose... ABC costing: calculate the activity overhead rate for machining (rate per hour). Choose... ABC costing: calculate the MOH per unit for the Seeder using activity- based costing. Choose... Standard costing: calculate the MOH per unit for the Seeder using only DL hours as the cost driver. ChooseStep by Step Solution
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