Answered step by step
Verified Expert Solution
Question
1 Approved Answer
hello, please help me with these questions. I really appreciate and thanks a lot for your hard work! Swifty Inc has two types of handbags:
hello, please help me with these questions. I really appreciate and thanks a lot for your hard work!
Swifty Inc has two types of handbags: standard and custom. The controller has decided to use a plantwide overhead rate based on direct iabor costs. The president has heard of activity-based costing and wants to sechow the results would differ if this system were used. Two activity cost pools were developed: machining (machine hours) and machine setup (number of setups). The total estimated machine hours is 2.400, and the total estimated number of setups is 510 . Presented below is information related to the company's operations. Total estimated overhead costs are $294,000. Overhead cost allocated to the machining activity cost pool is $192,000, and $102,000 is allocated to the machine setup activity cost pool. Your answer is incorrect. Compute the overhead rate using the traditional (plantwide) approach information related to each product's use of cost drivers. (Round answer to 0 decimal places, ey, 12) Predetermined overhead rate \% of directlabor cost Compute the overhead rates using the activity-based costing approach. Machining $ per machine hour Machine setup $ persetup hour Determine the difference in allocation between the two approaches. Crane, Inc. manufactures two products: missile range instruments and space pressure gauges. During April, 50 range instruments and 200 pressure gauges were produced, and overhead costs of $88,010 were estimated. An analysis of estimated overhead costs reveals the following activities. The cost driver volume for each product was as follows. Mstion the ramerfacturise overhead conts for Apre3 to the two products using activity-based costing IReurd per unit onsmen to 2 decurel plisent to {2.25} Lily Ine, has conducted the following analysis related to its product lines, using a traditional costing system (volume-based) and an activity-based costing system. The traditional and the activity-based costing systems assign the same amount of direct materials and direct labor costs. Using the following calculation compute the percentage difference in operating income for each of the product lines of Ayala: [Operating Income (ABC) - Operating Income (traditional cost)] + Operating Income (traditional cost). (Round answers to 2 decimal plocs. es. 12.25\%. Enter negative answers using cither a negative sign preceding the number es. 45.25% or parentheses es. (45.25).) Product 540x Product 137Y Product 2495 Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started