Department Finishing: 3,000,000
Department Assembly: 5,000,000
Direct Labour Hours Assembly: 100,000 hours
Machine Hours Assembly: 70,000 Hours
Direct labout hours Finishing : 25,000 hours
Machine Hours Finishing: 30,000 hours
Activity Cost pool Supervision; 2,000,000
Activity Cost pool Maintenance: 6,000,000
Activity Supervision: 125,000 direct labour hours
Activity Maintenance : 100,0000 machine hours
Required information Tableau DA 4-3: Mini-Case, Computing and assigning overhead costs using activity-based costing LO P3 Chrom Company manufactures two models, the XL and RD. It also has two departments, assembly and finishing. The company wants to assign budgeted overhead costs to its two different models to better understand the profitability of each model. The Tableau Dashboard provides data for our analysis. Budgeted Overhead Costs by Department Budgeted Direct Labor Hours & Machine Hours by Department 150,000 h... 125,000 h... 100,000 h... Finishing 75,000 hrs Assembly Total: $8,000,000 Assembly 50,000 hrs 25,000 hrs Finishing Finishing Direct Labor Hours Machine Hours Assembly Direct Labor Hours Machine Hours Budgeted Overhead Costs by Cost Driver & Budgeted Usage Activity by Activity Supervision Maintenance Supervision Total: $8,000,000 Maintenance Note: Total overhead costs by department and total overhead costs by activity are equal. The costs are presented in two different ways here. Note: Total overhead costs by department and total overhead costs by activity are equal. The costs are presented in two different ways here. +ableau Tableau DA 4-3: Mini-Case, Computing overhead activity rates using ABC 1. Using activity based costing and data from the lower half of the dashboard, compute overhead activity rates for both maintenance and supervision. Activity cost pool Budgeted Cost Budgeted Activity Usage Activity Rate 100,000 MH per MH 125,000 DLH per DLH Maintenance Supervision Help +ableau Tableau DA 4-3: Mini-Case, Assigning overhead costs and making decisions 2. Chrom produced 25,000 units of XL and 25,000 units of RD. Each unit of the XL model used 2 direct labor hours and 1 machine hour. Each unit of the RD model used 3 direct labor hours and 3 machine hours. (a) Compute the overhead cost per unit of each model using ABC. (b) Alternatively, compute the overhead cost per unit of each model using a single plantwide overhead rate based on direct labor hours. 3. The company gives a bonus to production managers based on their ability to lower the cost of their assigned model. a. Which overhead cost allocation method would the XL production manager prefer? b. Which overhead cost allocation method would the RD production manager prefer? Complete this question by entering your answers in the tabs below. Required 2A Required 28 Required 3 Compute the overhead cost per unit of each model using ABC. XL RD Activity Usage Activity Activity Rate Activity Rate Activity Usage MH Maintenance Supervision DLH Totals Units produced Overhead cost per unit per MH per DLH Next > per MH per DLH Save & Exit Subr Check my worke Allocated cost 0 $ 0 +ableau Tableau DA 4-3: Mini-Case, Assigning overhead costs and making decisions 2. Chrom produced 25,000 units of XL and 25,000 units of RD. Each unit of the XL model used 2 direct labor hours and 1 machine hour. Each unit of the RD model used 3 direct labor hours and 3 machine hours. (a) Compute the overhead cost per unit of each model using ABC. (b) Alternatively, compute the overhead cost per unit of each model using a single plantwide overhead rate based on direct labor hours. 3. The company gives a bonus to production managers based on their ability to lower the cost of their assigned model. a. Which overhead cost allocation method would the XL production manager prefer? b. Which overhead cost allocation method would the RD production manager prefer? Complete this question by entering your answers in the tabs below. Required 2A Required 2B Required 3 Alternatively, compute the overhead cost per unit of each model using a single plantwide overhead rate based on direct labor hours. Model Activity Usage Plantwide OH Rate OH Cost Per Unit XL RD Required 3 > Required information Tableau DA 4-3: Mini-Case, Computing and assigning overhead costs using activity-based costing LO P3 Chrom Company manufactures two models, the XL and RD. It also has two departments, assembly and finishing. The company wants to assign budgeted overhead costs to its two different models to better understand the profitability of each model. The Tableau Dashboard provides data for our analysis. Budgeted Overhead Costs by Department Budgeted Direct Labor Hours & Machine Hours by Department 150,000 h... 125,000 h... 100,000 h... Finishing 75,000 hrs Assembly Total: $8,000,000 Assembly 50,000 hrs 25,000 hrs Finishing Finishing Direct Labor Hours Machine Hours Assembly Direct Labor Hours Machine Hours Budgeted Overhead Costs by Cost Driver & Budgeted Usage Activity by Activity Supervision Maintenance Supervision Total: $8,000,000 Maintenance Note: Total overhead costs by department and total overhead costs by activity are equal. The costs are presented in two different ways here. Note: Total overhead costs by department and total overhead costs by activity are equal. The costs are presented in two different ways here. +ableau Tableau DA 4-3: Mini-Case, Computing overhead activity rates using ABC 1. Using activity based costing and data from the lower half of the dashboard, compute overhead activity rates for both maintenance and supervision. Activity cost pool Budgeted Cost Budgeted Activity Usage Activity Rate 100,000 MH per MH 125,000 DLH per DLH Maintenance Supervision Help +ableau Tableau DA 4-3: Mini-Case, Assigning overhead costs and making decisions 2. Chrom produced 25,000 units of XL and 25,000 units of RD. Each unit of the XL model used 2 direct labor hours and 1 machine hour. Each unit of the RD model used 3 direct labor hours and 3 machine hours. (a) Compute the overhead cost per unit of each model using ABC. (b) Alternatively, compute the overhead cost per unit of each model using a single plantwide overhead rate based on direct labor hours. 3. The company gives a bonus to production managers based on their ability to lower the cost of their assigned model. a. Which overhead cost allocation method would the XL production manager prefer? b. Which overhead cost allocation method would the RD production manager prefer? Complete this question by entering your answers in the tabs below. Required 2A Required 28 Required 3 Compute the overhead cost per unit of each model using ABC. XL RD Activity Usage Activity Activity Rate Activity Rate Activity Usage MH Maintenance Supervision DLH Totals Units produced Overhead cost per unit per MH per DLH Next > per MH per DLH Save & Exit Subr Check my worke Allocated cost 0 $ 0 +ableau Tableau DA 4-3: Mini-Case, Assigning overhead costs and making decisions 2. Chrom produced 25,000 units of XL and 25,000 units of RD. Each unit of the XL model used 2 direct labor hours and 1 machine hour. Each unit of the RD model used 3 direct labor hours and 3 machine hours. (a) Compute the overhead cost per unit of each model using ABC. (b) Alternatively, compute the overhead cost per unit of each model using a single plantwide overhead rate based on direct labor hours. 3. The company gives a bonus to production managers based on their ability to lower the cost of their assigned model. a. Which overhead cost allocation method would the XL production manager prefer? b. Which overhead cost allocation method would the RD production manager prefer? Complete this question by entering your answers in the tabs below. Required 2A Required 2B Required 3 Alternatively, compute the overhead cost per unit of each model using a single plantwide overhead rate based on direct labor hours. Model Activity Usage Plantwide OH Rate OH Cost Per Unit XL RD Required 3 >
