Munoz Sporting Equipment manufactures baseball bats and tennis rackets. Department B produces the baseball bats, and Department T produces the tennis rackets Munoz currently uses plantwide allocation to allocate its overhead to all products. Direct labor cost is the allocation base. The rate used is 100 percent of direct labor cost. Last year, revenue, materials, and direct labor were as follows: Baseball Bats Tennis Rackets Sales revenue $1,540,000 $1,000,000 Direct labor 340,000 170,000 Direct materials 561,000 283,800 Required: a. Compute the profit for each product using plantwide allocation b. Maria, the manager of Department T. was convinced that tennis rackets were really more profitable than baseball bats. She asked her colleague in accounting to break down the overhead costs for the two departments. She discovered that had department rates been used, Department B would have had a rate of 50 percent of direct labor cost and Department T would have had a rate of 200 percent of direct labor cost Recompute the profits for each product using each department's allocation rate (based on direct labor cost) Profit Baseball Tennis Bats Rackets a Using plantwide allocation Using department's allocation rate b The manager of the Personnel Department at City Enterprises has been reading about time-driven ABC and wants to apply it to her department. She has identified four basic activities her employees spend most of the their time on Interviewing, Hiring, Assessment, and Separation Processing. The department employs five staff who perform these activities. The manager provides the following estimates for the amount of time it takes to complete each of these activities: Interviewing: 45 minutes. Hiring: 60 minutes Assessment: 75 minutes. Separation Processing: 90 minutes. Employees in Personnel work 35-hour weeks with four weeks for vacation of the 35 hours, five are reserved for administrative tasks, training, and so on. The costs of the Personnel Department, including any allocated costs from other staff functions, are $972,000. During the year, Personnel conducted 1,200 interviews, made 375 hires, made 3,000 assessments, and had 250 separations Required: a. What is the cost per minute for activities in Personnel? (Round your answer to 2 decimal places.) b. What is the cost of interviewing and hiring one employeo? (Round your intermediate calculations and final answer to 2 decimal places.) c. How many minutes of unused capacity did Personnel have for the year? d. What was the cost of the unused capacity in Personnel? (Round your intermediate calculations to 2 decimal places.) b Cost per minute Total costs Unused minutes Cost of unused capacity a d Munoz Sporting Equipment manufactures baseball bats and tennis rackets. Department B produces the baseball bats, and Department T produces the tennis rackets Munoz currently uses plantwide allocation to allocate its overhead to all products. Direct labor cost is the allocation base. The rate used is 100 percent of direct labor cost. Last year, revenue, materials, and direct labor were as follows: Baseball Bats Tennis Rackets Sales revenue $1,540,000 $1,000,000 Direct labor 340,000 170,000 Direct materials 561,000 283,800 Required: a. Compute the profit for each product using plantwide allocation b. Maria, the manager of Department T. was convinced that tennis rackets were really more profitable than baseball bats. She asked her colleague in accounting to break down the overhead costs for the two departments. She discovered that had department rates been used, Department B would have had a rate of 50 percent of direct labor cost and Department T would have had a rate of 200 percent of direct labor cost Recompute the profits for each product using each department's allocation rate (based on direct labor cost) Profit Baseball Tennis Bats Rackets a Using plantwide allocation Using department's allocation rate b The manager of the Personnel Department at City Enterprises has been reading about time-driven ABC and wants to apply it to her department. She has identified four basic activities her employees spend most of the their time on Interviewing, Hiring, Assessment, and Separation Processing. The department employs five staff who perform these activities. The manager provides the following estimates for the amount of time it takes to complete each of these activities: Interviewing: 45 minutes. Hiring: 60 minutes Assessment: 75 minutes. Separation Processing: 90 minutes. Employees in Personnel work 35-hour weeks with four weeks for vacation of the 35 hours, five are reserved for administrative tasks, training, and so on. The costs of the Personnel Department, including any allocated costs from other staff functions, are $972,000. During the year, Personnel conducted 1,200 interviews, made 375 hires, made 3,000 assessments, and had 250 separations Required: a. What is the cost per minute for activities in Personnel? (Round your answer to 2 decimal places.) b. What is the cost of interviewing and hiring one employeo? (Round your intermediate calculations and final answer to 2 decimal places.) c. How many minutes of unused capacity did Personnel have for the year? d. What was the cost of the unused capacity in Personnel? (Round your intermediate calculations to 2 decimal places.) b Cost per minute Total costs Unused minutes Cost of unused capacity a d
