Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The Anchorage plant of the Tundra Company produces two calculators and has two production departments assembly and packaging. Information for the products is given below

image text in transcribed

The Anchorage plant of the Tundra Company produces two calculators and has two production departments assembly and packaging. Information for the products is given below Deluxe 20,000 $160,000 20,000 Regular 200,000 $1,500,000 160,000 40 80,000 16,000 120 Total Units produced Prime costs Direct labor hours $1,660,000 180,000 Number of setups Machine hours Inspection hours Number of moves 10,000 2,000 The following table presents activity information about the departments and products: Assembly Packaging Total Direct labor hours: Deluxe Regular 10,000 10,000 20,000 Machine hours: Deluxe 2,000 10,000 72.000 10,000 20,000 Overhead Costs: Setting equipment Moving material Machining Inspection $120,000 60,000 20,000 $120,000 60,000 180,000 144,000 $240,000 120,000 200,000 $216,000 Required a. Compute the predetermined overhead rate for each department if Assembly uses labor hours and Packaging uses machine hours. b. Calculate the per unit cost for each product if departmental overhead rates are used. (Round to 2 decimal places) c. Compute the predetermined plant-wide overhead rate based on direct labor hours. d. Calculate the per unit cost of each product if a plantwide overhead rate is used.(Round to 2 decimal places) Calculate the overhead rates for each overhead activity. Caleulate the per unit cost of each product if activity rates are used to assign overhead e. f. (Round to 2 decimal places)

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

Cost Accounting

Authors: Mark Lee Inman

2nd Edition

0434908320, 978-0434908325

More Books

Students also viewed these Accounting questions

Question

What are some of the difficulties that entrepreneurs face? LO.1

Answered: 1 week ago