Ellix Company manufactures two models of ultra-high fidelity speakers-the X200 model and the X99 model. Data...
Fantastic news! We've Found the answer you've been seeking!
Question:
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/664cab419ed01_609664cab413af64.jpg)
Transcribed Image Text:
Ellix Company manufactures two models of ultra-high fidelity speakers-the X200 model and the X99 model. Data regarding the two products follow: Product x200 X99 Direct Labor-Hours 0.2 DLHS per unit Annual Production 21,000 units Total Direct Labor-Hours 0.4 DLHS per unit 49,000 units 4,200 DLHS 19,600 DLHS 23,800 DLHS Additional information about the company follows: a. Model X200 requires $39 in direct materials per unit, and model X99 requires $26. b. The direct labor workers are paid $40 per hour. c. The company has always used direct labor-hours as the allocation base for applying manufacturing overhead cost to products. d. Model X200 is more complex to manufacture than model X99 and requires the use of special equipment. e. Because of the special work required in (d) above, the company is considering the use of activity-based absorption costing to apply manufacturing overhead cost to products. Three activity cost pools have been identified as follows: Estimated Total Activity 374,400 714,000 x200 108 1,040 X99 Total 162 270 0 1,040 4,200 19,600 23,800 $1,277,400 Activity Cost Pool Machine setups Special processing General factory Activity Measure Number of setupa Machine-hours Direct labor-hours Estimated Total Cost $ 189,000 Required: 1. Assume that the company continues to use direct labor-hours as the allocation base for applying overhead cost to products. a. Compute the plantwide predetermined overhead rate. b. Compute the unit product cost of each model. 2. Assume that the company decides to use activity-based absorption costing to apply overhead cost to products. a. Compute the activity rate for each activity cost pool and determine the amount of overhead cost that would be applied to each model using the activity-based approach. b. Compute the unit product cost of each model. Ellix Company manufactures two models of ultra-high fidelity speakers-the X200 model and the X99 model. Data regarding the two products follow: Product x200 X99 Direct Labor-Hours 0.2 DLHS per unit Annual Production 21,000 units Total Direct Labor-Hours 0.4 DLHS per unit 49,000 units 4,200 DLHS 19,600 DLHS 23,800 DLHS Additional information about the company follows: a. Model X200 requires $39 in direct materials per unit, and model X99 requires $26. b. The direct labor workers are paid $40 per hour. c. The company has always used direct labor-hours as the allocation base for applying manufacturing overhead cost to products. d. Model X200 is more complex to manufacture than model X99 and requires the use of special equipment. e. Because of the special work required in (d) above, the company is considering the use of activity-based absorption costing to apply manufacturing overhead cost to products. Three activity cost pools have been identified as follows: Estimated Total Activity 374,400 714,000 x200 108 1,040 X99 Total 162 270 0 1,040 4,200 19,600 23,800 $1,277,400 Activity Cost Pool Machine setups Special processing General factory Activity Measure Number of setupa Machine-hours Direct labor-hours Estimated Total Cost $ 189,000 Required: 1. Assume that the company continues to use direct labor-hours as the allocation base for applying overhead cost to products. a. Compute the plantwide predetermined overhead rate. b. Compute the unit product cost of each model. 2. Assume that the company decides to use activity-based absorption costing to apply overhead cost to products. a. Compute the activity rate for each activity cost pool and determine the amount of overhead cost that would be applied to each model using the activity-based approach. b. Compute the unit product cost of each model.
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
Understanding the history and background of your company gives you valuable insights as to what to do and what not to do going forward. A brief written summary of the background and history of the...
-
The following is a series of accounts for Kruger & Laurenzo, Incorporated, which has been operating for two years. The accounts are listed and numbered for identification. Following the accounts is a...
-
In what way does market assessment aid the marketing process?
-
Refer to Exercise E-10 and for each of the April transactions identify the journal in which it would be recorded. Assume the company uses a sales journal, purchases journal, cash receipts journal,...
-
The following is a partially completed lower section of a departmental expense allocation spreadsheet for Cozy Bookstore. It reports the total amounts of direct and indirect expenses allocated to its...
-
Menlo Company distributes a single product. The company's sales and expenses for last month follow: Per Unit S20 Sales Variable expenses Contribution margin Fixed expenses Net operating income Total...
-
Prepare the necessary entries to record the transactions related to intangibles. All costs incurred were for cash. ( Record entries in the order displayed in the problem statement. Credit account...
-
STAR Co. provides paper to smaller companies whose volumes are not large enough to warrant dealing directly with the paper mill. STAR receives 100-feet-wide paper rolls from the mill and cuts the...
-
2. Define management.3) Describe who managers are and where they work.4) Describe what managers do.5) Describe the factors that are reshaping and redefiningmanagement.6) Explain what the external...
-
E 1 0 . 1 9 ( LO 3 ) ( Depletion Computations - Timber ) Stanislaw Timber Company owns 9 , 0 0 0 acres of timberland purchased in 2 0 1 4 at a cost of $ 1 , 4 0 0 per acre. At the time of purchase,...
-
Question 01 You were hired as an engineer to evaluate some soil characteristics and conditions to which it is subjected. To do this, you obtained the information presented in the stratified soil...
-
1 According to Strudler, the reason lying is worse than misleading is thatl ying damages trust whereas misleading does not damage any trust. According to Strudler, the reason lying is worse than...
-
7. An object is thrown vertically upwards by a person's hands. While it is in contact with their hand, the object has an acceleration of a = (2.00t? + 12.0t) m/s?, with an initial velocity of zero....
-
The cost curve for the city water supply is C(Q) = 16 + 1/4 Q2, where Q is the amount of water supplied and C(Q) is the cost of providing Q acre-feet of water. (An acre-foot is the amount of water...
-
7. If a subsidiary purchases parent bonds at a price in excess of recorded book value, is the gain or loss attributed to the parent or the subsidiary? Explain.
-
PR 6-2 What information should be disclosed about property, plant, and equipment in the consolidated financial statements?
-
1. What reciprocal accounts arise when one company borrows from an affiliate?
![Mobile App Logo](https://dsd5zvtm8ll6.cloudfront.net/includes/images/mobile/finalLogo.png)
Study smarter with the SolutionInn App