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Please provide all of the requirements its 14 parts question Thank you for your help CH5 Q2 Terrific Inc. makes two styles of trophies, basic
Please provide all of the requirements its "14 parts question"
Thank you for your help
CH5 Q2
Terrific Inc. makes two styles of trophies, basic and deluxe, and operates at capacity. Terrific does large custom orders. Terrific budgets to produce 10,000 basic trophies and 5,000 deluxe trophies. Manufacturing takes place in two production departments: forming and assembly. In the forming department, indirect manufacturing costs are accumulated in two cost pools, set up and general overhead. In the assembly department, all indirect manufacturing costs are accumulated in one general overhead cost pool. The basic trophies are formed in batches of 200 but because of the more intricate detail of the deluxe trophies, they are formed in batches of 50. (Click the icon to view budgeted information.) Read the requirements The controller has asked you to compare plantwide, department, and activity-based cost allocation. Terrific Budgeted Information for the Year Ended November 30, 2020 Forming Department Basic Deluxe Total Direct materials $ 30,800 $ 24,200 $ 55,000 Direct manufacturing labor 30,100 22,400 52,500 Overhead costs: Set up 9,450 Overhead costs: General overhead 16,800 Basic Total 18,000 5,300 $ Assembly Department Direct materials Direct manufacturing labor Overhead costs: General overhead Deluxe 12,700 $ 22,200 15,800 38,000 22,800 1. Calculate the budgeted unit cost of basic and deluxe trophies based on a single plantwide overhead rate, if total overhead is allocated based on total direct costs. (Don't forget to include direct material and direct manufacturing labor cost in your unit cost calculation.) 2. Calculate the budgeted unit cost of basic and deluxe trophies based on departmental overhead rates, where forming department overhead costs are allocated based on direct manufacturing labor costs of the forming department and assembly department overhead costs are allocated based on total direct manufacturing labor costs of the assembly department. 3. Calculate the budgeted unit cost of basic and deluxe trophies if Terrific allocates overhead costs in each department using activity-based costing, where setup costs are allocated based on number of batches and general overhead costs for each department are allocated based on direct manufacturing labor costs of each department 4. Explain briefly why plantwide, department, and activity-based costing systems show different costs for the basic and deluxe trophies. Which system would you recommend and why? Basic Direct materials Forming Assembly Total direct materials Direct manufacturing labor Forming Assembly Total direct manufacturing labor Total direct costs Terrific Inc. makes two styles of trophies, basic and deluxe, and operates at capacity. Terrific does large custom orders. Terrific budgets to produce 10,000 basic trophies and 5,000 deluxe trophies. Manufacturing takes place in two production departments: forming and assembly. In the forming department, indirect manufacturing costs are accumulated in two cost pools, set up and general overhead. In the assembly department, all indirect manufacturing costs are accumulated in one general overhead cost pool. The basic trophies are formed in batches of 200 but because of the more intricate detail of the deluxe trophies, they are formed in batches of 50. (Click the icon to view budgeted information.) Read the requirements The controller has asked you to compare plantwide, department, and activity-based cost allocation. Terrific Budgeted Information for the Year Ended November 30, 2020 Forming Department Basic Deluxe Total Direct materials $ 30,800 $ 24,200 $ 55,000 Direct manufacturing labor 30,100 22,400 52,500 Overhead costs: Set up 9,450 Overhead costs: General overhead 16,800 Basic Total 18,000 5,300 $ Assembly Department Direct materials Direct manufacturing labor Overhead costs: General overhead Deluxe 12,700 $ 22,200 15,800 38,000 22,800 1. Calculate the budgeted unit cost of basic and deluxe trophies based on a single plantwide overhead rate, if total overhead is allocated based on total direct costs. (Don't forget to include direct material and direct manufacturing labor cost in your unit cost calculation.) 2. Calculate the budgeted unit cost of basic and deluxe trophies based on departmental overhead rates, where forming department overhead costs are allocated based on direct manufacturing labor costs of the forming department and assembly department overhead costs are allocated based on total direct manufacturing labor costs of the assembly department. 3. Calculate the budgeted unit cost of basic and deluxe trophies if Terrific allocates overhead costs in each department using activity-based costing, where setup costs are allocated based on number of batches and general overhead costs for each department are allocated based on direct manufacturing labor costs of each department 4. Explain briefly why plantwide, department, and activity-based costing systems show different costs for the basic and deluxe trophies. Which system would you recommend and why? Basic Direct materials Forming Assembly Total direct materials Direct manufacturing labor Forming Assembly Total direct manufacturing labor Total direct costsStep by Step Solution
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