Question
Product-Costing Accuracy, Consumption Ratios, Activity Rates, Activity Costing Tristar Manufacturing produces two types of battery-operated toy soldiers: infantry and special forces. The soldiers are produced
Product-Costing Accuracy, Consumption Ratios, Activity Rates, Activity Costing
Tristar Manufacturing produces two types of battery-operated toy soldiers: infantry and special forces. The soldiers are produced by using one continuous process. Four activities have been identified: machining, setups, receiving, and packing. Resource drivers have been used to assign costs to each activity. The overhead activities, their costs, and the other related data are as follows:
Product | Machine Hours | Setups | Receiving Orders | Packing Orders |
Infantry | 20,000 | 300 | 900 | 1,600 |
Special forces | 20,000 | 100 | 100 | 800 |
Costs | $80,000 | $24,000 | $18,000 | $30,000 |
Required:
1. Calculate the total overhead assigned to each product by using only machine hours to calculate a plantwide rate.
Infantry | $ |
Special forces | $ |
2. Calculate consumption ratios for each activity. Round your answers to two decimal places.
Product | Machine Hours | Setups | Receiving Orders | Packing Orders |
Infantry | ||||
Special forces |
3. Calculate a rate for each activity by using the associated driver. If required, round your answers to two decimal places.
Machining | $ per machine hour |
Setups | $ per setup |
Receiving | $ per receiving order |
Packing | $ per packing order |
4. Assign the overhead costs to each product by using the activity rates computed in Requirement 3.
Infantry | Special Forces | |||
Machining | $ | $ | ||
Setups | ||||
Receiving | ||||
Packing | ||||
Total | $ | $ |
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