Multiple Versus Single Overhead Rates, Activity Drivers Deoro Company has identified the following overhead activities, costs,...
Fantastic news! We've Found the answer you've been seeking!
Question:
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/665229b977df4_664665229b8edb8a.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/665229ba4e9c6_665665229b9d080b.jpg)
Transcribed Image Text:
Multiple Versus Single Overhead Rates, Activity Drivers Deoro Company has identified the following overhead activities, costs, and activity drivers for the coming year: Activity Expected Cost Activity Driver Activity Capacity Setting up equipment $484,950 Number of setups 610 Ordering costs 342,000 Number of orders 19,000 Machine costs 803,700 Machine hours 42,300 Receiving 373,100 Receiving hours 9,100 Deoro produces two models of dishwashers with the following expected prime costs and activity demands: Model A Model B Direct materials $634,000 $834,000 Direct labor 464,000 475,000 Units completed 15,100 7,500 Direct labor hours 6,900 2,500 Number of setups 380 230 Number of orders 6,200 12,800 Machine hours 24,200 18,100 Receiving hours 2,800 6,300 Required: 1. Determine the unit cost for each model using direct labor hours to apply overhead. Round intermediate calculations and final answers to nearest cent. Unit Cost Model A $ 213.16 Model B 2. Determine the unit cost for each model using the four activity drivers. Round your answers to nearest cent. Unit Cost Model A Model B 3. Which method produces the more accurate cost assignment? Multiple Versus Single Overhead Rates, Activity Drivers Deoro Company has identified the following overhead activities, costs, and activity drivers for the coming year: Activity Expected Cost Activity Driver Activity Capacity Setting up equipment $484,950 Number of setups 610 Ordering costs 342,000 Number of orders 19,000 Machine costs 803,700 Machine hours 42,300 Receiving 373,100 Receiving hours 9,100 Deoro produces two models of dishwashers with the following expected prime costs and activity demands: Model A Model B Direct materials $634,000 $834,000 Direct labor 464,000 475,000 Units completed 15,100 7,500 Direct labor hours 6,900 2,500 Number of setups 380 230 Number of orders 6,200 12,800 Machine hours 24,200 18,100 Receiving hours 2,800 6,300 Required: 1. Determine the unit cost for each model using direct labor hours to apply overhead. Round intermediate calculations and final answers to nearest cent. Unit Cost Model A $ 213.16 Model B 2. Determine the unit cost for each model using the four activity drivers. Round your answers to nearest cent. Unit Cost Model A Model B 3. Which method produces the more accurate cost assignment?
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
In a recent basketball game, a player who makes 65% of his free throws made eight consecutive free throws. Assuming that free-throw shots are independent, determine whether this feat was unusual.
-
Distinguish absorption from variable costing; prepare and explain the differences in operating income under each costing policy LO1
-
Xr04-73 A manufacturing firm produces its products in batches using sophisticated machines and equipment. The general manager wanted to investigate the relationship between direct labor costs and the...
-
Straus Company operates a small factory in which it manufactures two products: A and B. Production and sales results for last year were as follows: For purposes of simplicity, the firm averages total...
-
3. For the 4 th of July, a large discount chain sells packages of red, white, and blue steamers for $3.00. Of 10,000 streamers, 8,500 sell at the original price, while the rest were marked down to...
-
In the chart below for 2020 income tax brackets it shows information for single and married persons. Which statement about income tax rates below is true? Question 16 options: The more money single...
-
Transit Shuttle Inc. is considering investing in two new vans that are expected to generate combined cash inflows of \($20,000\) per year. The vans combined purchase price is \($65,000\). The...
-
Ginger Smalley expects to receive a \($300,000\) cash benefit when she retires five years from today. Ms. Smalleys employer has offered an early retirement incentive by agreeing to pay her...
-
Travis Vintor is seeking part-time employment while he attends school. He is considering purchasing technical equipment that will enable him to start a small training services company that will offer...
-
Medina Manufacturing Company has an opportunity to purchase some technologically advanced equipment that will reduce the companys cash outflow for operating expenses by \($1,280,000\) per year. The...
-
For the following two independent cases, show the cash flows from operating activities section of the 2010 statement of cash flows using the indirect method. Case A Case B 2010 2009 2010 2009 Sales...
-
Project 8: Criminal Code of Canada Forms Each document is worth 5 marks. Please complete the following forms using your templates on LMS: . Information to Obtain a Search Warrant - Form 1 o...
-
On January 2, 2003, Cameron Company contracted to lease a computer on a noncancelable basis for five years at an annual rental of $63,000, payable at the end of each year. The computer has an...
-
On January 2, 2001, Union Oil Company purchased a new airplane. The following costs are related to the purchase: Airplane, base price Cash discount Sales tax Delivery charges $112,000 3,000 4,000...
-
On April 1, 2003, Rosenberg Company purchased for $200,000 a tract of land on which was located a fully equipped factory. The following information was compiled regarding this purchase: Market...
![Mobile App Logo](https://dsd5zvtm8ll6.cloudfront.net/includes/images/mobile/finalLogo.png)
Study smarter with the SolutionInn App