Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

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

image text in transcribed

The Anchorage plant of the Tundra Company profuces two calculators and has two production assembly and packaging. Information for the products is given below Units produced Prime costs Direct labor hours Number of setups Machine hours Inspection hours Number of moves Deluxe 20,000 160,000 20,000 60 10,000 2,000 180 Regular 200,000 $1,500,000 160,000 40 80,000 16,000 120 Total S1,660,000 180,000 100 90,000 300 The following table presents activity information about the departments and products: Assembly Packaging Total Direct labor hours: Deluxe 20,000 10,000 Total Machine hours: Deluxe Regular 2,000 8,000 2.000 10,000 80,000 Total Overhead Costs: Setting equipment Moving material Machining Inspection Total $120,000 60,000 180,000 144,000 $504.000 60,000 20,000 120,000 200,000 uire 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) Compute the predetermined plant-wide overhead rate based on direct labor hours decimal places) Calculate the overhead rates for each overhead activity (Round to 2 decimal places) c. d. Calculate the per unit cost of each product if a plantwide overhead rate is used.(Round to 2 e. the per unit cost of each product if activity rates are used to assign overhead

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Students also viewed these Accounting questions