Chapter 09 HW Problem 0 Saved Help Save & Exit Submit Commonwealth Devices makes three wearable fitness devices at its Lake Plant: CFit-l, CFit-Z, and CFitXtra The company has for many years allocated overhead to products using machine-hours Last year, the Lake Plant produced and shipped 8,320 units of CFitl, 14,960 units of CFit2, and 8,320 units of CFit-Xtrat The plant recorded the following revenues and costs: COMMONWEALTH DEVICES Lake Plant skipped Income Statement CFit-l CFit-Z CFit-Xtra Total Sales revenue 5 915,200 $ 1,496,000 5 1,248,000 $ 3,659,200 Direct costs Direct materials 224,000 312,000 272,000 808,000 Direct labor 72,000 84,500 152,000 308,500 Variable overhead Machine setup 224,000 Order processing 176,000 Materials handling 224,000 Machining 128,000 Shipping 120,000 Contribution margin $ 1,670,700 Plant administration costs 1,432,000 Gross profit 5 238,700 The Lake Plant has put together an employee team to recommend a possible activity-based cost system, including cost allocation bases. The employee team recommends the following: Activity Cost Driver CFit-l CFit-Z CFit-Xtra Machine setup Setups 80 160 160 Order processing Orders received 9 20 11 Materials handling Material movements 3,000 4,500 5,000 Machining Machinehours 10,000 16,000 24,000 Shipping Units shipped 8,000 14,000 8,000 The employee team further recommends that administration costs not be allocated to products. Required: eztomheducation c Chapter 09 HW Problem 0 Saved Help Save 8. Exit Submit Required: a. Using machine-hours to allocate overhead, complete the income statement for the Lake Plant. Do not allocate administrative costs to products. b-1. Compute the cost driver rates. b-2. Complete the income statement using the activity-based costing method suggested by the employee team. Skippe d Complete this question by entering your answers in the tabs below. Req Bl Req BZ Using machinehours to allocate overhead, complete the income statement for the Lake Plant. Do not allocate administrative costs to products. Note: Do not round your intermediate calculations. Input all amounts as positive values. Sales revenue $ 915,200 $ 1,496,000 $ 1,248,000 $ 3,659,200 Direct costs: Direct material 224,000 312,000 272,000 808,000 Direct labor 72,000 84,500 152,000 308,500 Contribution margin 35 619,200 $ 1,099,500 $ 824,000 $ 2,542,700 Planl administration 1,432,000 Gross prot $ 1,110,700 Re- Bl > % .Erev 1 of 1 Next eztomheducationlcom Chapter 09 HW Problem 0 Saved Help Save 8. Exit Submit Required: a. Using machinehours to allocate overhead, complete the income statement for the Lake Plant. Do not allocate administrative costs to products. b-1. Compute the cost driver rates. b-2. Complete the income statement using the activity-based costing method suggested by the employee team, Skipped Complete this question by entering your answers in the tabs below. Req A Req BZ Compute the cost driver rates. Note: Round "Material handling", "Machining", and "Shipping" answers to two decimal places. Activity Unlt Rah Machine setup per setup Order processing per order Materials handling per movement Machining per machine-hour Shipping per unit shipped Bray 1 of 1 ezlo.mheducat Chapter 09 Hw Problem 0 Saved Help Save 8. Exit Submit 1 Complete this question by entering your answers in the tabs below. Req A Req Bl SkiPPEd Complete the income statement using the activitybased costing method suggested by the employee team. Note: Do not round your intermediate calculations. Input all amounts as positive values. Sales revenue $ 915,200 $ 1,496,000 $ 1,248,000 $ 3,659,200 Direct costs: Direct material 224,000 312,000 272,000 808,000 Direct labor 72,000 84,500 152,000 308,500 Variable overhead Machine setup 224,000 Order processing 176,000 Material handling 224,000 Machining 128.000 Shipping 120.000 Contribution margin Plant administration 1.432.000 Gross prot m grlcalw E1934 1 of 1 .N..ex.l