Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please give me solution Question Lotus Ltd has identified the following overhead costs and cost drivers for next year Overhead Items E ( cost) $

please give me solution

image text in transcribed
Question Lotus Ltd has identified the following overhead costs and cost drivers for next year Overhead Items E ( cost) $ Power 15000 Maintenance cost 7800 Ordering cost 6150 Set ups cost 4500 Cost Driver E( activity) Number of setups 400 Number of orders 4,000 Machine Hours 5,000 Kilowatt hours 52000 The following is one of the jobs completed during the year Product A Product B Direct materials $1200 $1300 Hourly rate 25 30 Units completed 125 150 DLH 140 70 Number of setups 4 6 Number of orders 20 9 Machine hours 250 100 Kilowatt hours 75 48 Actual overhead $1500 $950 The company's practical activity is 9800 machine hours REQUIRED Part 1 1. Calculate the predetermined rate for the plant using FBC based on machine hours for each job 2. Calculate total product cost using FBC based on Machine hours for each job 3. Calculate the unit cost for each Product 4. Is the overhead over-applied or under-applied? Part 2 5. Calculate the predetermined rate for the plant using ABC based on machine hours for each job 6. Calculate product cost under ABC. 7. Calculate the unit cost for each Product [ABC] 8. Is the overhead over-applied or under-applied under ABC? 9. Compare the result of FBC and ABC

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting Volume 1

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy

12th Canadian edition

119-49633-5, 1119496497, 1119496330, 978-1119496496

More Books

Students also viewed these Accounting questions

Question

1. Make sure you can see over partitions.

Answered: 1 week ago