MLUVIL-vuouw Lacy, Inc., produces a subassembly used in the production of hydraulic cylinders. The subassem blies are produced in three departments: Plate Cutting, Rod Cutting, and Welding. Materials are added at the beginning of the process. Overhead is applied using the following drivers and activity rates: Actual Usage (by Plate Driver Rate Cutting) Direct labor cost 150% of direct labor $ 732,000 Inspection hours $40 per hour 7,450 hours Purchase orders $1,000 per order 800 orders Other data for the Plate Cutting Department are as follows: Beginning work in process Units started Direct materials cost 750,000 Units, ending work in process (100% $6,000,000 materials; 64% conversion) 50,000 Exercise 6.14 Physical Flow, Equivalent Units, Unit Costs, No Beginning vir inventor Activity-Based Costing Lacy, Inc., produces a subassembly used in the production of hydraulic cylinders. The subassen blies are produced in three departments: Plate Cutting, Rod Cutting, and Welding. Materials are added at the beginning of the process. Overhead is applied using the following drivers and activity rates: Driver Direct labor cost Inspection hours Purchase orders Rate 150% of direct labor S40 per hour $1,000 per order Actual Usage (by Plate Cutting) $ 732,000 7,450 hours 800 orders Other data for the Plate Cutting Department are as follows: Beginning work in process Units started Direct materials cost Units, ending work in process (100% materials: 64% conversion) 750,000 $6,000,000 50,000 MLUVIL-vuouw Lacy, Inc., produces a subassembly used in the production of hydraulic cylinders. The subassem blies are produced in three departments: Plate Cutting, Rod Cutting, and Welding. Materials are added at the beginning of the process. Overhead is applied using the following drivers and activity rates: Actual Usage (by Plate Driver Rate Cutting) Direct labor cost 150% of direct labor $ 732,000 Inspection hours $40 per hour 7,450 hours Purchase orders $1,000 per order 800 orders Other data for the Plate Cutting Department are as follows: Beginning work in process Units started Direct materials cost 750,000 Units, ending work in process (100% $6,000,000 materials; 64% conversion) 50,000 Exercise 6.14 Physical Flow, Equivalent Units, Unit Costs, No Beginning vir inventor Activity-Based Costing Lacy, Inc., produces a subassembly used in the production of hydraulic cylinders. The subassen blies are produced in three departments: Plate Cutting, Rod Cutting, and Welding. Materials are added at the beginning of the process. Overhead is applied using the following drivers and activity rates: Driver Direct labor cost Inspection hours Purchase orders Rate 150% of direct labor S40 per hour $1,000 per order Actual Usage (by Plate Cutting) $ 732,000 7,450 hours 800 orders Other data for the Plate Cutting Department are as follows: Beginning work in process Units started Direct materials cost Units, ending work in process (100% materials: 64% conversion) 750,000 $6,000,000 50,000
