Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The Toyco Printing Company prints limited edition art books with production runs of 15,000 to 100,000. It has recently adopted an activity-based costing system to

image text in transcribed
image text in transcribed
image text in transcribed
The Toyco Printing Company prints limited edition art books with production runs of 15,000 to 100,000. It has recently adopted an activity-based costing system to assign manufacturing overhead to products. The following data relate to one product, Art of Desin and the ABC cost pools Art of Design 40.800 units Annual production Direct materials per unit Direct labor per unit $37 $8 Manufacturing overhead cost pools Cost Cost Pool Materials ordering $ 840,000 Materials inspection Equipment setup Quality control 525.000 2.500,030 Cost Driver Number of prchase orders Number of receiving reports Number of setups Number of inspections 1.000.000 Other 25.000.000 Direct labor cost Total manufacturing overhead $29,865.030 Annual activity information related to cont drivers: Cost Pool All Books Art of Design 1.200 120.000 purchase orders 2.100 receiving reports 312 Materials ordering Materials inspection Equisetup Quality control Other 130 setups 1 5.000 inspections 500 $12.500.000 direct bibor cost $920.000 SO AAN i DU %6 $ 4 & 7 5 C 9 3 0) 00 0 E R Y U 0 D F G H J K L X Your answer is incorrect Calculate the total unit cost for the Art of Design (Round answer to 2 decimal places, s. 15.25 Total cost per unit $ 79164 e Textbook and Media X Your swer is incorrect Suppose that Toy Co Printing allocates overhead by a traditional production volume-based method using direct labor dollars the allocation base and one cost pool. Determine the overhead rate per direct labor dollar and the per unit overhead assigned to the Art of Design (Round answer to 2 decimal places, s 1525) Overhead rate 5 3:33 per direct labor doll Overhead assigned $ 74664 per unit in the Art of Design department Toticos 5 e Textbook and Media Attempts of used SA SO 23 SU ca .. EV $ 4 % 5 0 > & 7 00. 9 O 3 E R T Y C o TL D F G I J L C V B N M V. 3 In question 6 of the homework, it isn't clear that total direct labor cost is the amount of "Other costs to be assigned that is given in the 3rd table: Annual activity Information related to cost drivers The last row of this table shows the total direct labor cost for the company as a whole and the cost of direct labor used by the product "Art of Design You will need the total direct labor cost to answer the last part of the

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

Managerial Accounting

Authors: Karen Braun, Wendy Tietz, Louis Beaubien

4th Canadian Edition

013544344X, 9780135443446

More Books

Students also viewed these Accounting questions

Question

Write a Python program to check an input number is prime or not.

Answered: 1 week ago

Question

Write a program to check an input year is leap or not.

Answered: 1 week ago

Question

Write short notes on departmentation.

Answered: 1 week ago