Chapter 26 needs to be completed on excel and by November 28,2016. (NO TEACHERS KEY )

Chapter 26 PE 26-1A: Single plantwide factory overhead rate The total factory overhead for Diva-nation Inc. is budgeted for the year at $180,000. Diva-nation manufactures two types of men's pants: jeans and khakis. The jeans and khakis each require 0.10 direct labor hour for manufacture. Each product is budgeted for 20,000 units of production for the year, determine (a) the total number of budgeted direct labor hours for the year, (b) the single plantwide factory overhead rate, and (c) the factory overhead allocated per unit for each product using the single plantwide factory overhead rate. PE 26-3A: Activity-based costing: factory overhead costs The total overhead for Diva-nation is budgeted for the year at $180,000, divided into four activities: cutting, $18,000; sewing, $36,000; setup, $96,000; and inspection, $30,000. Diva-nation manufactures two types of men's pants: jeans and khakis. The activity-base usage quantities for each product by each activity are as follows. Jeans Khakis Cutting Sewing 800 dlh 1,200 dlh 1,200 2,000 dlh 800 2,000 dlh Setup Inspection 1,400 setups 3,000 inspections 1,000 2,000 2,400 setups 5,000 inspections Each product is budgeted for 20,000 units of production for the year. Determine (a) the activity rates for each activity and (b) the activity-based factory overhead per unit for each product. EX 26-1: Single plantwide factory overhead rate Nixon Machine Parts Inc.'s Fabrication Department incurred $560,000 of factory overhead cost in producing gears and sprockets. The two products consumed a total of 8,000 direct machine hours. Of that amount, sprockets consumed 5,150 direct machine hours. Determine the total amount of factory overhead that should be allocated to sprockets using machine hours as the allocation base. EX 26-12: Activity cost pools, activity rates, and product costs using activity- based costing Hipster Home Appliances Inc. is estimating the activity cost associated with producing ovens and refrigerators. The indirect labor can be traced into four separate activity pools, based on time records provided by the employees. The budgeted activity cost and activity-base information are provided as follows: Activity Activity Pool Cost Procurement Activity Base $66,000 Scheduling Number of purchase orders 4,120 Number of production orders Materials handling 13,280 Number of moves Production development 8,100 Number of engineering charges Total cost $91,500 The estimated activity-base usage and unit information for two product lines was determined from corporate records as follows: Number of Number of Purchase Production Orders Orders Number of Number of Engineering Moves Changes Units 740 Ovens 400 136 240 68 Refrigerators 260 70 175 40 600 Totals 660 206 180 1,340 415 (A) Determine the activity rate for each activity cost pool (B) Determine the activity-base cost per unit of each product