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QUESTION 2 Alignment INSTRUCTION 2: (Round 5 amounts to the nearest 501 e penny Show support for your swers Use the information below AND determine
QUESTION 2 Alignment INSTRUCTION 2: (Round 5 amounts to the nearest 501 e penny Show support for your swers Use the information below AND determine the (a) cost of the units transferred out and (b) the cost of the ending WIP for March 31 HINT Use your hard copy of the production cost report to assist you Brussels Comingware reports the following information for its Baking process by month of March 2018 Materials we entered at the beginning of the Baking process. Other costs are incurred everly during the process Production results were (1) 36,000 units were started at the beginning of March (2) A March 31, 2018. 3600 units were lot 50% complete as to conversion and 100% complete as to material Cost accumulated during October include: (1) 50 costs en beginning WIP) March 1, 2018 (2) Material $72.000 (3) Labor 555.000 (4) Manufacturing Overhead, 5101.000 QUESTION 1 Smith Phine, Inc. produces running shoes (1) Standard and (2) ultra During October, the company experienced above normal production Specifically, 300 pairs of standard shoes were produced and 200 pairs of ultra shoes were produced the overhead cost is estimated to be $134 250 A breakdown of the overhead costs reveals the following activities ACTIMTIES COST DRIVERS TOTAL COSI 1. Materials handling Number of requisitions $ 52.500 2 Equipment setup Number of setups 41,250 3. Inspections Number of inspections 40.500 514.250 The cost analysts determined the following cost driver volumes for each product as follows COST DRIVERS STANDARD ULTRA TOTAL Number of requisitions 1.500 2.100 3,600 Number of setups 900 1.500 2.400 Number of inspections 750 1,500 2.250 INSTRUCTIONS 1. Compute the overhead rate for each activity 2 Determine the amount of overhead costs that should be assigned to each product 3. Assume instead of ABC, the traditional method of overhead assignment used machine hours to assign overhead cools Total machine hours are approximately 1 200 hours where the production of standard shoes used 800 machine hours and the production of ultra shoes used 400 machine hours. Determine the amount of overhead cost that would be assigned to each of the two products 4. Compare and evaluate your answer in 2 with your answer in 3. is one answer a more fair assignment and/or a more accurate assignment than the other? Explain in detail
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