Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

complete all requirements Data table The controller has asked you to compare plantwide, department, and activity-based cost allocation. Requirements 1. Calculate the budgeted unit cost

complete all requirements image text in transcribed
image text in transcribed
image text in transcribed
Data table The controller has asked you to compare plantwide, department, and activity-based cost allocation. Requirements 1. Calculate the budgeted unit cost of basic and deluxe trophies based on a single plantwide overhead rate, if total overhead is allocated based on total direct costs. (Don't forget to include direct material and direct manufacturing labor cost in your unit cost calculation.) 2. Calculate the budgeted unit cost of basic and deluxe trophies based on departmental overhead rates, where forming department overhead costs are allocated based on direct manufacturing labor costs of the forming department and assembly department overhead costs are allocated based on total direct manufacturing labor costs of the assembly department. 3. Calculate the budgeted unit cost of basic and deluxe trophies if Acclaim allocates overhead costs in each department using activity-based costing, where setup costs are allocated based on number of batches and general overhead costs for each department are allocated based on direct manufacturing labor costs of each department. 4. Explain briefly why plantwide, department, and activity-based costing systems show different costs for the basic and deluxe trophies. Which system would you recommend and why? Acclaim ine. makes two styles of trophles, basic and deluke, and egerates at capacity. Aoclaim does large cinstom ordere. Aoclaim budgots to produce 10,000 basic trophies and 5,000 delux trophios. Manufacturing takos place in two production departments: forming and assembly in the forming department, indirect manufocturing cosis are accumulatod in two cost pocks, sot up general overhead. In the assembly department, oll indirect manufacturing costs are accumulated in one general overhead cost pool. The basic Irophies are formed in bakches of 200 units pe but because of the more intricate detai of the deluxe trophies, thoy are formed in batches of 50 unis per batch, (Click the ioon to view budgeted intomation.) Rend the requirements Data table The controller has asked you to compare plantwide, department, and activity-based cost allocation. Requirements 1. Calculate the budgeted unit cost of basic and deluxe trophies based on a single plantwide overhead rate, if total overhead is allocated based on total direct costs. (Don't forget to include direct material and direct manufacturing labor cost in your unit cost calculation.) 2. Calculate the budgeted unit cost of basic and deluxe trophies based on departmental overhead rates, where forming department overhead costs are allocated based on direct manufacturing labor costs of the forming department and assembly department overhead costs are allocated based on total direct manufacturing labor costs of the assembly department. 3. Calculate the budgeted unit cost of basic and deluxe trophies if Acclaim allocates overhead costs in each department using activity-based costing, where setup costs are allocated based on number of batches and general overhead costs for each department are allocated based on direct manufacturing labor costs of each department. 4. Explain briefly why plantwide, department, and activity-based costing systems show different costs for the basic and deluxe trophies. Which system would you recommend and why? Acclaim ine. makes two styles of trophles, basic and deluke, and egerates at capacity. Aoclaim does large cinstom ordere. Aoclaim budgots to produce 10,000 basic trophies and 5,000 delux trophios. Manufacturing takos place in two production departments: forming and assembly in the forming department, indirect manufocturing cosis are accumulatod in two cost pocks, sot up general overhead. In the assembly department, oll indirect manufacturing costs are accumulated in one general overhead cost pool. The basic Irophies are formed in bakches of 200 units pe but because of the more intricate detai of the deluxe trophies, thoy are formed in batches of 50 unis per batch, (Click the ioon to view budgeted intomation.) Rend the requirements

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

A Simplify Way Of Practicalise Auditing Profession

Authors: DR LUKMAN A ABATAN

1st Edition

B09YVKHT6X, 979-8800165050

More Books

Students also viewed these Accounting questions