Answered step by step
Verified Expert Solution
Question
1 Approved Answer
help with section 4 please show work Landon Company makes two models of children's playhouses, the Castle and the Mansion. Basic production information follows: Castle
help with section 4 please show work Landon Company makes two models of children's playhouses, the Castle and the Mansion. |
Basic production information follows: |
Castle | Mansion | |||||
Direct materials cost per unit | $ | 35 | $ | 63 | ||
Direct labor cost per unit | 21 | 36 | ||||
Sales price per unit | 357 | 572 | ||||
Expected production per month | 760 | units | 420 | units | ||
|
Landon has monthly overhead of $194,915, which is divided into the following cost pools: |
Setup costs | $ | 83,300 |
Quality control | 67,415 | |
Maintenance | 44,200 | |
| | |
Total | $ | 194,915 |
| | |
|
The company has also compiled the following information about the chosen cost drivers: |
Castle | Mansion | Total | |
Number of setups | 35 | 63 | 98 |
Number of inspections | 320 | 375 | 695 |
Number of machine hours | 1,100 | 1,500 | 2,600 |
|
Overhead assigned | ||
Castle Model: | $ | |
Mansion Model: | $ | |
| | |
Total Overhead Cost | $ | |
| | |
|
Castle | Mansion | |
Unit cost | $ | $ |
|
Castle | Mansion | |
Gross margin | $ | $ |
|
Requirement 4: |
Select the appropriate cost driver for each cost pool and calculate the activity rates if Landon wanted to implement an ABC system. (Round your answers to 2 decimal places. Omit the "$" sign in your response.) |
Setup Costs | $ | ||
Quality Control | $ | ||
Maintenance | $ | ||
|
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