Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I need help answering these problems Traditional Product Costing Versus Activity-Based Costing High Country Outfitters, Inc., makes backpacks for large sporting goods chains that are

I need help answering these problems

image text in transcribedimage text in transcribed
Traditional Product Costing Versus Activity-Based Costing High Country Outfitters, Inc., makes backpacks for large sporting goods chains that are sold under the customers' store brand names. The accounting department has identied the following overhead costs and cost drivers for next year: Overhead Item Expected Costs Cost Driver Maximum Quantity Setup costs $1,216,800 ' Number of setups 7,200 ' Ordering costs ' 312,000 ' Number of orders ' 60,000 1 Maintenance 1 1,200,000 1 Number of machine hours 1 800001 Power ' 120,000 ' Number of kilowatt hours ' 600,000, Total predicted direct labor hours for next year is 60,000. The following data are for two recently completed jobs: Job 201 Job 202 Cost ofdirect materials $15,000 $16,500 Cost ofdirect labor $20,625 $72,750 Number ofunits completed 1,125 915 Number of direct labor hours i 270 330 Number of setups ' 18 22 Number of orders ' 24 45 Number of kilowatt hours 270 360 Number of machine hours ' 540 450 a. Determine the unit cost for eachjob using a traditional company-wide overhead rate based on direct labor hours. Round rate to two decimal places. Overhead rate per direct labor hour $1 0 Use rounded overhead rate calculated above for calculations below. Round cost answers to the nearest whole number, when needed. Round cost per unit to two decimal places, if needed. Job 201 Job 202 Direct materials $ 3 Direct labor Overhead Total job cost Units Per unit cost b. Determine the unit cost for eachjob using ABC. Activitybased overhead rates: Round answers to two decimal places, if needed. Setup costs $ Ordering costs $ Maintenance costs $ 0000 Power $ NOTE: Round all answers (except cost per unit) to the nearest whole number, when applicable. Round cost per unit answers to two decimal places. Job 201 Job 202 Direct materials $ 0 $ 0 Direct labor 0 0 Overhead Setup cost Ordering costs Maintenance costs Power Total job costs $ Units produced OOOOOOO OOOOOOO Cost per unit 55

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

Excel Applications For Accounting Principles

Authors: Gaylord SmithBruce Walz

4th Edition

1133388027, 9781133388029

More Books

Students also viewed these Accounting questions