please write the CALCULATIONS and answer in the paper
ACCT212 CLASS ASSIGNMENT 25 FEBRUARY 2021 NAME : SECTION: STUDENT ID: ANSWER ALL QUESTIONS AND SUBMIT TO THE RCYCI BLACKBOARD BY THE DEADLINE STATED THERE BE4-5 Mordica Company identifies three activities in its manufacturing process: machine wetups, machining, and inspections. Estimated annual overhead cust for each activity is $150,000 $325,000 and $87.500, respectively. The cost driver for each activity and the expected annual usage are: number of scups 2.500, machine hours 25,000, and number of inspections 1.750. Compute the overhead rate for cach activity, Type your answer (including calculations) in the table below: Activity Cost Pools ABC Overhead Rate E4-1 Wilkins Inc. has two types of handbags: standard and custom. The controller has decided to use a plantwide overhead rate based on direct labor costs. The president has heard of activity-based costing and wants to see how the results would differ if this system were used. Two activity cost pools were developed: machining and machine setup. Pre sented below is information related to the company's operations Standard Custom Direct labor costs $50,000 $100,000 Machine hours 1,000 1,000 Setup lours 100 400 Total estimated overhead costs are $270,000. Overhead cost alkated to the machining a tivity cost pool is $170,000, and $100.000 is allocated to the machine setup activity cast pool Instructions (a) Compute the overhead rate using the traditional (plantwide) approach. (b) Compute the overhead tates using the activity based costing approach. (c) Determine the difference in allocation between the two approaches, (d) Discuss the results between the two types of costing system, traditional and ABC costing. in terms of understated or overstated allocation of the overhead and the effect it has on the product pricing Type your answer (including calculations) in the table below: la) OVERHEAD RATE USING THE TRADITIONAL (PLANT WIDE) APPROACH. b) OVERHEAD RATES USING THE ABC APPROACH. ACTIVITY COST COST DRIVERS POOLS ESTIMATED OVERHEAD ACTIVITY-BASED OVERHEAD RATES CALCULATION MACHINING MACHINE SETUP Ic) CALCULATION OF DIFFERENCE IN ALLOCATION BETWEEN THE TWO APPROACH TRADITIONAL COSTING OVERHEAD ALLOCATION STANDARD CUSTOM HANDBAG HANDBAG TOTAL OVERHEAD ALLOCATION ABC COSTING OVERHEAD ALLOCATION STANDARD HANDBAG MACHINING CUSTOM HANDBAG MACHINE SETUP TOTAL OVERHEAD ALLOCATION (d) DISCUSS THE RESULTS BETWEEN THE TWO TYPES OF COSTING SYSTEM, TRADITIONAL AND ABC COSTING, IN TERMS OF UNDERSTATED OR OVERSTATED ALLOCATION OF THE OVERHEAD AND THE EFFECT IT HAS ON THE PRODUCT PRICING ARC COSTING Yanbu ceramics has budgeted overhead costs of $706,000 It has allocated overhead on a plant wide basis to its two products: Italian ceramic Spanish ceramic The company has decided to experiment with Activity-Based Costing The company has created two activity cost pools and related activity cost drivers. These two cost pools are: Cutting (cost driver is machine hours) Design (cost driver is number of setups) Overhead allocated to the cutting cost pool is $700,000 and $6,000 is allocated to the design cost pool Additional information related to these pools is as follows. Italian Spanish Total Machine hours 150,000 100,000 250,000 Number of setups 700 800 1,500 A. List the activity cost pools, activity cost drivers and their overhead. Activity cost pools Cost drivers Estimated overhead B. Calculate the activity-based overhead rates. Expected Use of Cost Driver per Activity Activity Based Overhead Rates Activity cost pools Estimated Overhead Calculate the total overhead costs assigned for both Italian and Spanish Ceramics. Italian EXPECTED USE OF COST DRIVER PER PROUDUCT ACTIVITY COST POOLS ACTIVITY-BASED OVERHEAD RATES COST ASSIGNED TOTAL OVERHEAD COST ASSIGNED Spanish EXPECTED USE OF COST DRIVER PER PRODUCT ACTIVITY-BASED OVERHEAD RATES COST ASSIGNED ACTIVITY COST POOLS TOTAL OVERHEAD COST ASSIGNED D. Using information in the question and answer in part C, calculate the OVERHEAD COSI PER UNIT FOR BOTH Italian AND Spanish ceramics and with the information in the box below, what would be the PRODUCT COST PER UNIT for each? Italian Spanish Number of units produced: 100,000 Number of units produced: 70,000 Overhead Cost per unit Overhead Cost per unit: Direct materiali per unit: $3.00 Direct labor per unit: $2.20 Product cost per Unit LL Direct material per unit: $1.80 Direct labor per unit: $2.20 Product cost per Unit: ACCT212 CLASS ASSIGNMENT 25 FEBRUARY 2021 NAME : SECTION: STUDENT ID: ANSWER ALL QUESTIONS AND SUBMIT TO THE RCYCI BLACKBOARD BY THE DEADLINE STATED THERE BE4-5 Mordica Company identifies three activities in its manufacturing process: machine wetups, machining, and inspections. Estimated annual overhead cust for each activity is $150,000 $325,000 and $87.500, respectively. The cost driver for each activity and the expected annual usage are: number of scups 2.500, machine hours 25,000, and number of inspections 1.750. Compute the overhead rate for cach activity, Type your answer (including calculations) in the table below: Activity Cost Pools ABC Overhead Rate E4-1 Wilkins Inc. has two types of handbags: standard and custom. The controller has decided to use a plantwide overhead rate based on direct labor costs. The president has heard of activity-based costing and wants to see how the results would differ if this system were used. Two activity cost pools were developed: machining and machine setup. Pre sented below is information related to the company's operations Standard Custom Direct labor costs $50,000 $100,000 Machine hours 1,000 1,000 Setup lours 100 400 Total estimated overhead costs are $270,000. Overhead cost alkated to the machining a tivity cost pool is $170,000, and $100.000 is allocated to the machine setup activity cast pool Instructions (a) Compute the overhead rate using the traditional (plantwide) approach. (b) Compute the overhead tates using the activity based costing approach. (c) Determine the difference in allocation between the two approaches, (d) Discuss the results between the two types of costing system, traditional and ABC costing. in terms of understated or overstated allocation of the overhead and the effect it has on the product pricing Type your answer (including calculations) in the table below: la) OVERHEAD RATE USING THE TRADITIONAL (PLANT WIDE) APPROACH. b) OVERHEAD RATES USING THE ABC APPROACH. ACTIVITY COST COST DRIVERS POOLS ESTIMATED OVERHEAD ACTIVITY-BASED OVERHEAD RATES CALCULATION MACHINING MACHINE SETUP Ic) CALCULATION OF DIFFERENCE IN ALLOCATION BETWEEN THE TWO APPROACH TRADITIONAL COSTING OVERHEAD ALLOCATION STANDARD CUSTOM HANDBAG HANDBAG TOTAL OVERHEAD ALLOCATION ABC COSTING OVERHEAD ALLOCATION STANDARD HANDBAG MACHINING CUSTOM HANDBAG MACHINE SETUP TOTAL OVERHEAD ALLOCATION (d) DISCUSS THE RESULTS BETWEEN THE TWO TYPES OF COSTING SYSTEM, TRADITIONAL AND ABC COSTING, IN TERMS OF UNDERSTATED OR OVERSTATED ALLOCATION OF THE OVERHEAD AND THE EFFECT IT HAS ON THE PRODUCT PRICING ARC COSTING Yanbu ceramics has budgeted overhead costs of $706,000 It has allocated overhead on a plant wide basis to its two products: Italian ceramic Spanish ceramic The company has decided to experiment with Activity-Based Costing The company has created two activity cost pools and related activity cost drivers. These two cost pools are: Cutting (cost driver is machine hours) Design (cost driver is number of setups) Overhead allocated to the cutting cost pool is $700,000 and $6,000 is allocated to the design cost pool Additional information related to these pools is as follows. Italian Spanish Total Machine hours 150,000 100,000 250,000 Number of setups 700 800 1,500 A. List the activity cost pools, activity cost drivers and their overhead. Activity cost pools Cost drivers Estimated overhead B. Calculate the activity-based overhead rates. Expected Use of Cost Driver per Activity Activity Based Overhead Rates Activity cost pools Estimated Overhead Calculate the total overhead costs assigned for both Italian and Spanish Ceramics. Italian EXPECTED USE OF COST DRIVER PER PROUDUCT ACTIVITY COST POOLS ACTIVITY-BASED OVERHEAD RATES COST ASSIGNED TOTAL OVERHEAD COST ASSIGNED Spanish EXPECTED USE OF COST DRIVER PER PRODUCT ACTIVITY-BASED OVERHEAD RATES COST ASSIGNED ACTIVITY COST POOLS TOTAL OVERHEAD COST ASSIGNED D. Using information in the question and answer in part C, calculate the OVERHEAD COSI PER UNIT FOR BOTH Italian AND Spanish ceramics and with the information in the box below, what would be the PRODUCT COST PER UNIT for each? Italian Spanish Number of units produced: 100,000 Number of units produced: 70,000 Overhead Cost per unit Overhead Cost per unit: Direct materiali per unit: $3.00 Direct labor per unit: $2.20 Product cost per Unit LL Direct material per unit: $1.80 Direct labor per unit: $2.20 Product cost per Unit
