Answered step by step
Verified Expert Solution
Question
1 Approved Answer
please answer both questions, Thank you so much!! Question 1 Question 2 To meet Food and Drug Administration requirements and to assureits customers of safe,
please answer both questions, Thank you so much!!
Question 1
Question 2
To meet Food and Drug Administration requirements and to assureits customers of safe, sainitary, and nutritious food, Heath 'SUs engages in a high level of quality controL. Health 'SUs assigns its quality-control overhead costs to all products at a rate of 17% of direct labor costs. Its direct labor cost for the month of June for its low-calorie breakfast line is $68,500. In response to repeated requests from its financial vice president, Health 'S Us's management agrees to adopt activity-based costing. Data relating to the lowcalorie breakfast line for the month of June are as follows. Compute the quality-control overhead cost to be assigned to the low-calorie breakfast product line for the month of June (1) using the traditional product costing system (direct labor cost is the cost driver), and (2) using activity-based costing. eTextbook and Media By what amount does the traditional product costing system understate or overstate the low-calorie breakfast line? Sheridan Corporation manufactures safes-large mobile safes, and large walk-in stationary bank safes. As part of its annual budgeting process, Sheridan is analyzing the profitability of its two products. Part of this analysis imvolves estimating the amount of overhead to be assigned to each product line. The information shown below relates to overhead. The total estimated manufacturing overhead was $280,000. Under traditional costing (which assigns overhead on the basis of direct labor hours), what amount of manufacturing overhead costs are assigned to: (Round answers to 2 decimal places, e\&. 1225 ) (1) One mobile safe $ per unit (2) One walk-in safe $ per unit The total estimated manufacturing overhead of $280,000 was comprised of $168,000 for materials handling costs and $112,000 for purchasing activity costs. Under activity-based costing (ABC): (Round answers to 2 decimal places, eg. 12.25. What amount of materials handling costs are assigned to: (a) One mobile safe each (b) One walk-in safe each eTextbook and Media The total estimated manufacturing overhead of $280,000 was comprised of $168,000 for materials handling costs and $112,000 for purchasing activity costs, Under activity-based costing (ABC): (Round answers to 2 decimal places, egg. 12.25.) What amount of purchasing activity costs are assigned to: (a) One mobile safe each (b) One walk-in safe Compare the amount of overhead assigned to one mobile safe and to one walk-in safe under the traditional costing approach versus under ABC. (Round answers to 2 decimal places, eg. 12.25.)Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started