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Good evening, I am needing help with the following questions. Please advise. 1. HW 5 0 Saved Tanner Manufacturing is developing an activitybased costing system
Good evening,
I am needing help with the following questions. Please advise.
1.
HW 5 0 Saved Tanner Manufacturing is developing an activitybased costing system to improve overhead cost allocation. One of the first steps in developing the system is to classify the costs of performing production activities into activity cost pools. 20 Required Classify the cost of each activity in the following list into unit-, batch-, product-, or facility-level cost pools: eBook a. Plant security @ b. Ordering materials for a specic type of product Him :2. Wages of workers moving units of work between workstations _ d. Factorvwide electricityr at e. Salan,I ofa manager in charge of a product line f. Sales commissions lli g. Engineering product design References h. Supplies i Wages of maintenance staff j. Labeling and packaging Evert Company makes two types of circuit boards. One is a highcaliber board designed to accomplish the most demanding tasks; the other is a lowcaliber board designed to provide limited service at an affordable price. During its most recent accounting period, Evert incurred $540,000 of inspection cost. Evert recently established an activitybased costing system that classies its activities into four categories. Categories and appropriate cost drivers follow: Direct Labor Number of Number of Number of Hours Batches Inspectors Square Feet High caliber 6,660 26 3 30,666 Low caliber 21,660 26 2 703,666 Total 21,998 4-6 5 160,066 Required Allocate the inspection cost between the two products assuming that it is driven by {a} unit-level activities, {b} batch-level activities, (c) productlevel activities, or {d} facilitylevel activities. Note that each allocation represents a separate alternative. In other words, the $540,000 ofinspection cost will be allocated four times, once for each cost driver. Note: Do not round intermediate calculations. a] Unit-level activities b] Batch-level activities c} Productlevel activities d] Facilitylevel activities Snowden Industries produces two electronic decoders, P and Q. Decoder P is more sophisticated and requires more programming and testing than does Decoder Q. Because ofthese product differences, the company wants to use activity-based costing to allocate overhead costs. It has identified four activity pools. Relevant information follows: Cost Pool Activity Pools Total Cost Driver Repair and maintenance on assembly machine $ 132,666 Number of units produced Programming cost 164,666 Number of programming hours Software inspections 24,666 Number of inspections Product testing 28,669 Number of tests Total overhead cost $ 3483999 Expected activity for each product follows: Number of Number of Programming Number of Number of Units Hours Inspections Tests Decoder P 19,366 2,366 386 2,366- Decoder 6 46,266 1,866 126 2,266 Total 66,666 4,166 566 5,666 Assume that before shifting to activitybased costing, Snowden Industries allocated all overhead costs based on direct labor hours. Direct labor data pertaining to the two decoders follow: Direct Labor Hours Decoder P ?,266 Decoder Q 16,366 Total 245699 Required :1. Compute the amount ofoverhead cost allocated to each type of decoder when using direct labor hours as the allocation base. in. Determine the cost per unit for overhead when using direct labor hours as the allocation base and when using ABC. Complete this question by entering your answers in the tabs below. Required A Required B Compute the amount of overhead cost allocated to each type of decoder when using direct labor hours as the allocation base. Note: Round intermediate calculations to 2 decimal places. Round your answers to the nearest whole dollar amount. _ Snowden Industries produces two electronic decoders, P and GI. Decoder P is more sophisticated and requires more programming and testing than does Decoder Q. Because ofthese product differences, the company wants to use activitybased costing to allocate overhead costs. It has identified four activity pools. Relevant information follows: Cost Pool Activity Pools Total Cost Driver Repair and maintenance on assembly machine $ 132,666 Number of units produced Programming cost 164,666 Number of programming hours Software inspections 24,666 Number of inspections Product testing 23,339 Number of tests Total overhead cost $ 348,999 Expected activity for each product follows: Number of Number of Programming Number of Number of Units Hours Inspections Tests Decoder P 19,666 2,366 386 2,666 Decoder Q 46,266 1,866 126 2,266 Total 66,666 4,166 566 5,666 Assume that before shifting to activity-based costing, Snowden Industries allocated all overhead costs based on direct labor hours. Direct labor data pertaining to the two decoders follow: Direct Labor Hours Decoder P ?,266 Decoder Q 16,366 Total 243999 Required 6. Compute the amount of overhead cost allocated to each type of decoder when using direct labor hours as the allocation base. b. Determine the cost per unit for overhead when using direct labor hours as the allocation base and when using ABC. Complete this question by entering your answers in the tabs below. Required A Required B Determine the cost per unit for overhead when using direct labor hours as the allocation base and when using ABC. Note: Round intermediate calculations and final answers to 2 decimal places. Labor hours 9 Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required A Required B Determine the cost per unit for overhead when using direct labor hours as the allocation base and when using ABC. Note: Round intermediate calculations and final answers to 2 decimal places. ABC $165.520-00 9 $132 480 00 9 Labor hours 7,200.00 6 16,800.00 6Step by Step Solution
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