Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Quantity 750 7,720 40 Process Activity Overhead Cost Driver Components Changeover $446,250 Number of batches Machining 365,928 Machine hours Setups 75,400 Number of setups $887,578

image text in transcribed

image text in transcribed

Quantity 750 7,720 40 Process Activity Overhead Cost Driver Components Changeover $446,250 Number of batches Machining 365,928 Machine hours Setups 75,400 Number of setups $887,578 Finishing Welding $316,160 Welding hours Inspecting 275,125 Number of inspections Rework 30,750 Rework orders $622,035 Support Purchasing $185,625 Purchase orders Providing space 31,000 Number of units Providing utilities 42,710 Number of units $259,335 324 5,200 775 150 495 3,900 3,900 Additional production information concerning its two product lines follows. Units produced Welding hours Batches Number of inspections Machine hours Setups Rework orders Purchase orders Model 145 1,300 1,800 375 455 2,450 20 90 330 Model 212 2,600 3,400 375 320 5,270 20 60 165 Using ABC, compute the overhead cost per unit for each product line. (Round your final answers to 2 decimal places.) Model 145 Model 212 Activity Expected Activity Overhead Overhead Activity Expected Activity Costs driver Activity Rate driver incurred assigned incurred assigned Components Number of Changeover $ 446,250 750 batches Machine Machining 365,928 7,720 hours Setups 75,400 40 Setups Finishing Welding Welding $ 316,160 5,200 hours Inspecting 275,125 775 Inspections Rework Rework 30,750 150 orders Support Purchase Purchasing $ 185,625 495 orders Providing space and 73,710 3,900 Units utilities Total overhead cost Total units produced Overhead cost per unit

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

Financial and Managerial Accounting Information for Decisions

Authors: John Wild, Ken Shaw, Barbara Chiappetta

6th edition

78025761, 978-0078025761

More Books

Students also viewed these Accounting questions

Question

What is your greatest strength?

Answered: 1 week ago