Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Show all supporting computations. Flyer Corporation manufactures two products, Product A and Product B. Product B is the more complex of the two products, requiring

image text in transcribed
Show all supporting computations. Flyer Corporation manufactures two products, Product A and Product B. Product B is the more complex of the two products, requiring three hours of direct labor time per unit to manufacture compared to one and one-half hours of direct labor time for each unit of Product A. Overhead is currently assigned to the products on the basis of direct labor hours The company estimated it would incur $396,000 in manufacturing overhead costs and produce 5,600 units of Product B and 22,000 units of Product A during the current year (for a total estimated direct labor hours of 49,800). Costs for materials and direct labor per unit of product are: Required (6 Points): a. What would be the Predetermined Overhead Rate per DLH using Traditional Costing? (you can round to the nearest cent) b. Using Traditional Costing, what amount of overhead would be applied to each unit of Product A? To each unit of product B? Using Traditional Costing, calculate the product cost per unit for Product A and for Product B. (Now switching to Activity Based Costing) The company's overhead costs can be attributed to four major activities. These activities and the amount of overhead cost attributable to each for the current year are given below: d. Using Activity Based Costing, calculate the predetermined overhead rate for each of the four cost pools. e. Using Activity Based Costing, what amount of overhead would be applied to each unit of Product A? To each unit of Product B? 1. Using Activity Based Costing, calculate the product cost per unit for Product A and for Product B. Show all supporting computations. Flyer Corporation manufactures two products, Product A and Product B. Product B is the more complex of the two products, requiring three hours of direct labor time per unit to manufacture compared to one and one-half hours of direct labor time for each unit of Product A. Overhead is currently assigned to the products on the basis of direct labor hours The company estimated it would incur $396,000 in manufacturing overhead costs and produce 5,600 units of Product B and 22,000 units of Product A during the current year (for a total estimated direct labor hours of 49,800). Costs for materials and direct labor per unit of product are: Required (6 Points): a. What would be the Predetermined Overhead Rate per DLH using Traditional Costing? (you can round to the nearest cent) b. Using Traditional Costing, what amount of overhead would be applied to each unit of Product A? To each unit of product B? Using Traditional Costing, calculate the product cost per unit for Product A and for Product B. (Now switching to Activity Based Costing) The company's overhead costs can be attributed to four major activities. These activities and the amount of overhead cost attributable to each for the current year are given below: d. Using Activity Based Costing, calculate the predetermined overhead rate for each of the four cost pools. e. Using Activity Based Costing, what amount of overhead would be applied to each unit of Product A? To each unit of Product B? 1. Using Activity Based Costing, calculate the product cost per unit for Product A and for Product B

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

Applications Of Accounting Information Systems

Authors: David M. Shapiro

1st Edition

194999158X, 9781949991581

More Books

Students also viewed these Accounting questions

Question

Why do you float higher in salt water than in fresh?

Answered: 1 week ago

Question

Does your message reiterate its main idea?

Answered: 1 week ago