Question
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 $
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 | $ | 43 | $ | 62 | ||
Direct labor cost per unit | 23 | 36 | ||||
Sales price per unit | 367 | 575 | ||||
Expected production per month | 730 | units | 390 | units | ||
Landon has monthly overhead of $195,460, which is divided into the following cost pools: |
Setup costs | $ | 93,500 |
Quality control | 55,760 | |
Maintenance | 46,200 | |
Total | $ | 195,460 |
| | |
The company has also compiled the following information about the chosen cost drivers: |
Castle | Mansion | Total | |
Number of setups | 42 | 68 | 110 |
Number of inspections | 340 | 340 | 680 |
Number of machine hours | 1,200 | 2,100 | 3,300 |
Requirement 1: |
Suppose Landon used a traditional costing system with machine hours as the cost driver. Determine the amount of overhead assigned to each product line. (Do not round intermediate calculations and round your final answers to the nearest whole dollar amount. Omit the "$" sign in your response.) |
Overhead assigned | ||
Castle Model: | $ | |
Mansion Model: | $ | |
Total Overhead Cost | $ | |
| | |
Requirement 2: |
Calculate the production cost per unit for each of Landon's products under a traditional costing system. (Round your intermediate calculations and final answers to 2 decimal places. Omit the "$" sign in your response.) |
Castle | Mansion | |
Unit cost | $ | $ |
Requirement 3: |
Calculate Landon's gross margin per unit for each product under the traditional costing system. (Round your intermediate calculations and final answers to 2 decimal places. Omit the "$" sign in your response.) |
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 | $ | ||
Requirement 5: |
Assuming an ABC system, assign overhead costs to each product based on activity demands . (Omit the "$" sign in your response.) |
Overhead Assigned To Castle | Overhead Assigned To Mansion | |||
Setup Cost | $ | $ | ||
Quality Control | $ | $ | ||
Maintenance | $ | $ | ||
Total Overhead Cost | $ | $ | ||
| | | | |
Requirement 6: |
Calculate the production cost per unit for each of Landon's products in an ABC system. (Round your intermediate calculations and final answers to 2 decimal places. Omit the "$" sign in your response.) |
Castle | Mansion | |
Unit cost | $ | $ |
Requirement 7: |
Calculate Landon's gross margin per unit for each product under an ABC system. (Round your intermediate calculations and final answers to 2 decimal places. Omit the "$" sign in your response.) |
Castle | Mansion | |
Gross margin | $ | $ |
|
I need help with requirement 2-7 please...
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