Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Required Information Chrom Company manufactures two models, the XL and RD. It also has two departments, assembly and finishing. The company wants to assign budgeted

image text in transcribed

image text in transcribed

Required Information Chrom Company manufactures two models, the XL and RD. It also has two departments, assembly and finishing. The company wants to assign budgeted overhead costs to its two different models to better understand the profitability of each model. The Tableau Dashboard provides data for our analysis. Budgeted Overhead Costs by Budgeted Direct Labor Hours & Department Machine Hours by Department 150,000 h... 125,000 h... 100,000 h... Finishing 75,000 hrs Assembly Total: $8,000,000 Assembly 50,000 hrs Assembly 25,000 hrs Finishing Direct Labor Hours Finishing Machine Hours Budgeted Overhead Costs by Cost Driver & Budgeted Usage Activity by Activity Supervision Maintenance Supervision Total: $8,000,000 Maintenance Note: Total overhead costs by department and total overhead costs by activity are equal. The costs are presented in two different ways here. * + ableau 4 2. Chrom produced 25,000 units of XL and 25,000 units of RD. Each unit of the XL model used 2 direct labor hours and 1 machine hour. Each unit of the RD model used 3 direct labor hours and 3 machine hours. (a) Compute the overhead cost per unit of each model using ABC. (b) Alternatively, compute the overhead cost per unit of each model using a single plantwide overhead rate based on direct labor hours. 3. The company gives a bonus to production managers based on their ability to lower the cost of their assigned model. a. Which overhead cost allocation method would the XL production manager prefer? b. Which overhead cost allocation method would the RD production manager prefer? Complete this question by entering your answers in the tabs below. Required 2A Required 2B Required 3 Alternatively, compute the overhead cost per unit of each model using a single plantwide overhead rate based on direct labor hours. Plantwide OH Rate OH Cost Per Unit Model XL RD Activity Usage DLH DLH

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_2

Step: 3

blur-text-image_3

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

International Marketing And Export Management

Authors: Gerald Albaum , Alexander Josiassen , Edwin Duerr

8th Edition

1292016922, 978-1292016924

More Books

Students also viewed these Accounting questions

Question

What benefit or advantage does your organization offer each public?

Answered: 1 week ago