Case 1 (7.5 Marks) Tommy Manufacturing Corporation has a traditional costing system in which it applies...
Fantastic news! We've Found the answer you've been seeking!
Question:
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/6658980f8e0b1_1276658980f894dd.jpg)
Transcribed Image Text:
Case 1 (7.5 Marks) Tommy Manufacturing Corporation has a traditional costing system in which it applies manufacturing overhead to its products using a predetermined overhead rate base direct labour-hours (DLHs). The company has two products, B40W and C63J, ab- which it has provided the following data: B40W C63J Direct materials per unit... $34.90 $63.70 Direct labor per unit. $20.80 $62.40 Direct labor-hours per unit. 0.80 2.40 35,000 15,000 Annual production... The company's estimated total manufacturing overhead for the year is $2,656,000 the company's estimated total direct labor-hours for the year is 64,000. The company is considering using a variation of activity-based costing to determin its unit product costs for external reports. Data for this proposed activity-based costing system appear below: Activities and Activity Measures Assembling products (DLHs). Preparing batches (batches). Milling (MHs).. Total. Estimated Overhead Cost $1,216,000 480,000 960,000 $2.656.000 B40W C63J Total Activities Assembling products. 28,000 36,000 64,000 Preparing batches.. Milling... 2,304 2,496 4,800 1,088 2,112 3,200 Required: a. Determine the unit product cost of each of the company's two products unde traditional costing system. b. Determine the unit product cost of cach of the company's two products under activity-based costing system. Case 1 (7.5 Marks) Tommy Manufacturing Corporation has a traditional costing system in which it applies manufacturing overhead to its products using a predetermined overhead rate base direct labour-hours (DLHs). The company has two products, B40W and C63J, ab- which it has provided the following data: B40W C63J Direct materials per unit... $34.90 $63.70 Direct labor per unit. $20.80 $62.40 Direct labor-hours per unit. 0.80 2.40 35,000 15,000 Annual production... The company's estimated total manufacturing overhead for the year is $2,656,000 the company's estimated total direct labor-hours for the year is 64,000. The company is considering using a variation of activity-based costing to determin its unit product costs for external reports. Data for this proposed activity-based costing system appear below: Activities and Activity Measures Assembling products (DLHs). Preparing batches (batches). Milling (MHs).. Total. Estimated Overhead Cost $1,216,000 480,000 960,000 $2.656.000 B40W C63J Total Activities Assembling products. 28,000 36,000 64,000 Preparing batches.. Milling... 2,304 2,496 4,800 1,088 2,112 3,200 Required: a. Determine the unit product cost of each of the company's two products unde traditional costing system. b. Determine the unit product cost of cach of the company's two products under activity-based costing system.
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
Air enters a compressor at ambient conditions of 100 kPa and 20C at a rate of 4.5 m3/s with a low velocity, and exits at 900 kPa, 60C, and 80 m/s. The compressor is cooled by cooling water that...
-
Assume a VAT situation where the tax rate is 15 percent, with export sales exempt. The manufacturer does not purchase inputs on which VAT has been paid, and its net selling price to the wholesaler...
-
Bonus Obligation Raymond Moss, vice president of Moss Auto Parts, gets an annual bonus of 15% of net income after bonus and income taxes. Income before bonus and income taxes is $250,000. The...
-
Use row reduction to evaluate the determinant of the matrix. Do not use cofactors. 3 6-9 0 0-2 -21 5
-
Find f. f(t)= f"(t) = W. 3 = f(4) 11, f'(4) = 3
-
Let f ( x ) = 3 x ^ 2 and g ( x ) = x ^ 2 + 2 . Find the area of the region enclosed by f ( x ) and g ( x
-
Example of delivery time of merchandise? Example of economic order quantity? Example of SECURITY STOCK? Why is the Inventory system important? Why is ABC and inventory control important? What is...
-
Microsoft stock is trading for $20.40 right now. 1. How much would you likely pay for a call option on Microsoft with a strike price of $21.00? What is the intrinsic value and speculative value on...
-
When managers intervene in a subordinate's conflict, they generally use one of three dominant styles. What are the three dominant styles and what occurs in each? (Use the textbook and at least one...
-
Based on teh following data, should we undertake an investment in Project X?Our analysis reveals that we can sell 500 units at a price of $10,000 each during each year.The project has a useful life...
-
On 1 July 2019, John Ltd acquired all the issued shares of Wayne Ltd for $250,000. At this date, the financial statements of Wayne Ltd showed the following: Share capital Retained earnings General...
-
The following trial balance was extracted from the books of a sole trader, as at 31 December 2008: At the end of December the trader was able to produce the following additional information: a Stock...
-
On 1 January 2006, a business's list of assets and liabilities are as follows: The businesss sales are strictly for cash only. The owner of the business does not keep any books at all. During the...
-
Lakia Corporation reported the following current-year purchases and sales data for its only product: Lakia uses a perpetual inventory system. Ending inventory consists of 500 units, 400 from the July...
![Mobile App Logo](https://dsd5zvtm8ll6.cloudfront.net/includes/images/mobile/finalLogo.png)
Study smarter with the SolutionInn App