Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Hello, Please help me answer, activity table Alpha, i first pasted the instructions and numbers needed and then pasted the actual Alpha table, thank you

Hello,

Please help me answer, activity table Alpha, i first pasted the instructions and numbers needed and then pasted the actual Alpha table, thank you in advance

Mello Manufacturing Company is a diversified manufacturer that manufactures three products (Alpha, Beta, and Omega) in a continuous production process. Senior management has asked the controller to conduct an activity-based costing study. The controller identified the amount of factory overhead required by the critical activities of the organization as follows:

1

Activity

Activity Cost Pool

2

Production

$238,830.00

3

Setup

96,585.00

4

Material handling

9,660.00

5

Inspection

52,364.00

6

Product engineering

171,622.00

7

Total

$569,061.00

The activity bases identified for each activity are as follows:

Activity

Activity Base

Production Machine hours
Setup Number of setups
Material handling Number of parts
Inspection Number of inspection hours
Product engineering Number of engineering hours

The activity-base usage quantities and units produced for the three products were determined from corporate records and are as follows:

Machine Number of Number of Number of Number of
Hours Setups Parts Inspection Hours Engineering Hours Units
Alpha 901 62 73 428 134 1,245
Beta 773 117 156 313 191 918
Omega 421 232 254 247 213 520
Total 2,095 411 483 988 538 2,683

Each product requires 40 minutes per unit of machine time.

Required:
Complete the Activity Tables for Alpha, Beta and Omega.
1. Determine the activity rate for each activity.*
2. Use the activity rates in (1) to determine the total and per-unit activity costs associated with all three products.*
3. Why arent the activity unit costs equal across all three products since they require the same machine time per unit?
*If required, round all per-unit amounts to the nearest cent.

image text in transcribed

Activity Table - Alpha Complete the Activity Table for Alpha. 1. Determine the activityrale for each activity. Enter these rates in the Activity Rale columns. 2. Use the activity rates in (1) to determine the total and per-unit activity costs associated with Alpha. "It required, round all per-unit amounts to the nearest cent. Alpha Activity- Activity Base Activity Activity Usage Rate Cost Production Setup parts Material handling insp. hours Inspection eng. hours Product Engineering mh Total activity cost setups Number of units Activity cost per unit

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

Step: 3

blur-text-image

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

Alaskas Permanent Fund Dividend Examining Its Suitability As A Model

Authors: K. Widerquist, M. Howard

2nd Edition

0230112072, 9780230112070

More Books

Students also viewed these Accounting questions