Problem 13-23 (Algo) Activity-based costing LO 9 MedTech Inc, manufactures and sells diagnostic equipment used in the medical profession, its job costing system was designed using on activity-based costing approach Direct materials and direct labor costs are aceurusted separately, along with information concerning four manufacturing overhead cost drivers (activities Assume that the direct to bot rate is $20 per hour and that there were no beginning inventories. The following information was available for 2019, based on an expected production level of 475,000 units for the year Activity Cost Deiver Materials handling Milling and grinding Assembly and inspection Testing Budgeted costs For 2019 $5,000, 3,000, 5.200.000 1,900.se Cesc orive Usedias Allocation anber of parts and Number of machine hours Di Lobor hours worked Nanber of uit tested Cost Allocation Rate SMS per part per hour per hour per vi The following production, costs and activities occurred during the month of August Units Orect Number of parts Machi Direction Produced/tested Materials Costs Used BUS 50. $3,600,00 280,00 020, 98,00 Required: a. Calculate the total manufacturing costs and the cost per unit produced and tested during the month of August for MedTech (Round "Cost per unit to 2 decimal places.) Total manufacturing cost Cost per unit produced and tested b. Which of the fotlowing are the advantages of the ABC approach relative to using a single predetermined overhead application rate based on direct labor hours (Note: You do not have to calculate the overed that would be applied for the month of August using this alternative method.) (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer.) ABC does not help in decision-making ABC bystems produce more accurate financial information ABC approach is likely to provide better information to manufacturing managers ABC helps in decision-making ABC systems produce more accurate produkt costing information Problem 13-25 (Algo) Variable versus absorption costing LO 8 Trout Pro Co manufactures fishing equipment Duiting 2019. total costs associated with ufacturing 17500 fy.cast fishing rods ja new product introduced this year were as follows Rawatan Direct Labor Variable intacturing overhead Fixed facturing overhead $ 62,200 15, 11,6 20.00 Required a. Calculate the cost per fishing rod under both verble costing and abortion cost Round your answers to 2 decimal places) Variable cost per rod Absorption cont period b.14340 of those fishing rods word in finished goods invertory at the end of 20:9 by how much and low direction righer or lower would 2019 operating income be different under vantable costing than dor absorption Cocong Do not found intermediate calculations) decoreereg om te 1. Express the fishing rod cost na cost formula Round your answers to 2 decimal places) 2. What does this formula suggest the total cost of making an additional 50 fiching rod would be Round your intermediate calculations and final answer to 2 decimal places) Problem 13-29 (Algo) Cost of goods manufactured and cost of goods sold LO 5, 7 The following table summarizes the beginning and ending Inventories of Decatur Manufacturing Inc. for the month of October Sept. 30 Oct 31 Raw materials $36,200 529,660 Work in process 71, see 67,000 Finished goods 48,100 43,20 31 Raw materials purchased during the month of October totaled $125 400. Direct labor costs incurred totaled $313,100 for the month. Actual and applied manufacturing overhead costs for October totaled $190,900 and $194.300, respectively. Over/Underapplied overhead is written off to cost of goods sold at the end of the year in December Required: a. Calculate the cost of goods manufactured for October, b. Calculate the cost of goods sold for October Cost of goods manufactured Cost of goods sold Problem 13-23 (Algo) Activity-based costing LO 9 MedTech Inc, manufactures and sells diagnostic equipment used in the medical profession, its job costing system was designed using on activity-based costing approach Direct materials and direct labor costs are aceurusted separately, along with information concerning four manufacturing overhead cost drivers (activities Assume that the direct to bot rate is $20 per hour and that there were no beginning inventories. The following information was available for 2019, based on an expected production level of 475,000 units for the year Activity Cost Deiver Materials handling Milling and grinding Assembly and inspection Testing Budgeted costs For 2019 $5,000, 3,000, 5.200.000 1,900.se Cesc orive Usedias Allocation anber of parts and Number of machine hours Di Lobor hours worked Nanber of uit tested Cost Allocation Rate SMS per part per hour per hour per vi The following production, costs and activities occurred during the month of August Units Orect Number of parts Machi Direction Produced/tested Materials Costs Used BUS 50. $3,600,00 280,00 020, 98,00 Required: a. Calculate the total manufacturing costs and the cost per unit produced and tested during the month of August for MedTech (Round "Cost per unit to 2 decimal places.) Total manufacturing cost Cost per unit produced and tested b. Which of the fotlowing are the advantages of the ABC approach relative to using a single predetermined overhead application rate based on direct labor hours (Note: You do not have to calculate the overed that would be applied for the month of August using this alternative method.) (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer.) ABC does not help in decision-making ABC bystems produce more accurate financial information ABC approach is likely to provide better information to manufacturing managers ABC helps in decision-making ABC systems produce more accurate produkt costing information Problem 13-25 (Algo) Variable versus absorption costing LO 8 Trout Pro Co manufactures fishing equipment Duiting 2019. total costs associated with ufacturing 17500 fy.cast fishing rods ja new product introduced this year were as follows Rawatan Direct Labor Variable intacturing overhead Fixed facturing overhead $ 62,200 15, 11,6 20.00 Required a. Calculate the cost per fishing rod under both verble costing and abortion cost Round your answers to 2 decimal places) Variable cost per rod Absorption cont period b.14340 of those fishing rods word in finished goods invertory at the end of 20:9 by how much and low direction righer or lower would 2019 operating income be different under vantable costing than dor absorption Cocong Do not found intermediate calculations) decoreereg om te 1. Express the fishing rod cost na cost formula Round your answers to 2 decimal places) 2. What does this formula suggest the total cost of making an additional 50 fiching rod would be Round your intermediate calculations and final answer to 2 decimal places) Problem 13-29 (Algo) Cost of goods manufactured and cost of goods sold LO 5, 7 The following table summarizes the beginning and ending Inventories of Decatur Manufacturing Inc. for the month of October Sept. 30 Oct 31 Raw materials $36,200 529,660 Work in process 71, see 67,000 Finished goods 48,100 43,20 31 Raw materials purchased during the month of October totaled $125 400. Direct labor costs incurred totaled $313,100 for the month. Actual and applied manufacturing overhead costs for October totaled $190,900 and $194.300, respectively. Over/Underapplied overhead is written off to cost of goods sold at the end of the year in December Required: a. Calculate the cost of goods manufactured for October, b. Calculate the cost of goods sold for October Cost of goods manufactured Cost of goods sold