Question
Plantwide versus Departmental Rates, Product-Costing Accuracy: Activity-Based Costing Ramsey Company produces speakers (Model A and Model B). Both products pass through two producing departments. Model
Plantwide versus Departmental Rates, Product-Costing Accuracy: Activity-Based Costing
Ramsey Company produces speakers (Model A and Model B). Both products pass through two producing departments. Model A's production is much more labor-intensive than that of Model B. Model B is also the more popular of the two speakers. The following data has been gathered for the two products:
Product Data | ||
Model A | Model B | |
Units produced per year | 10,000 | 100,000 |
Prime costs | $145,000 | $1,450,000 |
Direct labor hours | 139,000 | 310,000 |
Machine hours | 17,000 | 204,000 |
Production runs | 30 | 70 |
Inspection hours | 900 | 1,300 |
Maintenance hours | 9,000 | 91,000 |
Overhead costs: | ||
Setup costs | $290,000 | |
Inspection costs | 231,000 | |
Machining | 77,000 | |
Maintenance | 300,000 | |
Total | $898,000 |
Required:
1. Compute the overhead cost per unit for each product by using a plantwide rate based on direct labor hours. (Round to two decimal places.)
Plantwide rate: $fill in the blank f342b6feff8e056_1 per DLH.
Model A: | $fill in the blank f342b6feff8e056_2 overhead cost per unit |
Model B: | $fill in the blank f342b6feff8e056_3 overhead cost per unit |
machining is not 5923 and 71077 that is wrong and model a is not 21,44 i posted twice they gave same answer but incorrect
2. Compute the overhead cost per unit for each product by using ABC. (Round rates and unit overhead costs to two decimal places.)
Model A: | $fill in the blank cf269df3707c00f_1 overhead cost per unit |
Model B: | $fill in the blank cf269df3707c00f_2 overhead cost per unit |
Note: Be sure to complete both tables below.
Activity | Driver | Activity Rate |
Setups | Production runsInspection hoursMachine hoursMaintenance hoursProduction runs | $fill in the blank cf269df3707c00f_4 per runhourrun |
Inspections | Production runsInspection hoursMachine hoursMaintenance hoursInspection hours | $fill in the blank cf269df3707c00f_7 per runhourhour |
Machining | Production runsInspection hoursMachine hoursMaintenance hoursMachine hours | $fill in the blank cf269df3707c00f_10 per runhourhour |
Maintenance | Production runsInspection hoursMachine hoursMaintenance hoursMaintenance hours | $fill in the blank cf269df3707c00f_13 per runhourhour |
Overhead assignment | ||
Model A | Model B | |
Setups | $fill in the blank cf269df3707c00f_15 | $fill in the blank cf269df3707c00f_16 |
Inspections | fill in the blank cf269df3707c00f_17 | fill in the blank cf269df3707c00f_18 |
Machining | fill in the blank cf269df3707c00f_19 | fill in the blank cf269df3707c00f_20 |
Maintenance | fill in the blank cf269df3707c00f_21 | fill in the blank cf269df3707c00f_22 |
Total overhead | $fill in the blank cf269df3707c00f_23 | $fill in the blank cf269df3707c00f_24 |
Units produced | fill in the blank cf269df3707c00f_25 | fill in the blank cf269df3707c00f_26 |
Overhead per unit | $fill in the blank cf269df3707c00f_27 | $fill in the blank cf269df3707c00f_28 |
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