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Question 1) Question 2) Question 3) Kennedy Appliance Inc.'s Machining Department incurred $119,700 of factory overhead cost in producing hoses and valves. The two products
Question 1)
Question 2)
Question 3)
Kennedy Appliance Inc.'s Machining Department incurred $119,700 of factory overhead cost in producing hoses and valves. The two products consumed a total of 5,700 direct machine hours. Of that amount, hoses consumed 2,400 direct machine hours.
Determine the total amount of factory overhead that should be allocated to hoses using machine hours as the allocation base. $___________
Single plantwide factory overhead rate Bach Instruments Inc. makes three musical instruments: flutes, clarinets, and oboes. The budgeted factory overhead cost is $104,720. Overhead is allocated to the three products on the basis of direct labor hours. The products have the following budgeted production volume and direct labor hours per unit: Budgeted Production Volume Direct Labor Hours Per Unit Flutes 3,000 units 0.5 Clarinets 400 1.4 Oboes 1,400 1.2 If required, round all per unit answers to the nearest cent. a. Determine the single plantwide overhead rate. per direct labor hour b. Use the overhead rate in (a) to determine the amount of total and per-unit overhead allocated to each of the three products. Total Factory Overhead Cost Per Unit Factory Overhead Cost Flutes Clarinets Oboes Total Product Costs using Activity Rates Hercules Inc. manufactures elliptical exercise machines and treadmills. The products are produced in its Fabrication and Assembly production departments. In addition to production activities, several other activities are required to produce the two products. These activities and their associated activity rates are as follows: Activity Activity Rate Fabrication $28 per machine hour Assembly $11 per direct labor hour Setup $48 per setup Inspecting $27 per inspection Production scheduling $12 per production order Purchasing $9 per purchase order The activity-base usage quantities and units produced for each product were as follows: Activity Base Elliptical Machines Treadmill Machine hours 1,949 1,150 Direct labor hours 411 160 Setups 45 14 Inspections 622 373 Production orders 67 13 Purchase orders 184 112 243 Units produced 163 Use the activity rate and usage information to determine the total activity cost and activity cost per unit for each product. If required, round the per unit answers to the nearest cent. Total Activity Cost Activity Cost Per Unit Elliptical Machines TreadmillStep by Step Solution
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