Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

these are two questions please do well in boxes for easy understanding. i will rate tour answer. Uupu OVEM Durban Metal Products, Limited, of the

these are two questions please do well in boxes for easy understanding. i will rate tour answer.
image text in transcribed
image text in transcribed
image text in transcribed
Uupu OVEM Durban Metal Products, Limited, of the Republic of South Africa makes specialty metal parts used in applications ranging from the cutting edges of bulldozer blades to replacement parts for Land Rovers. The company uses an activity-based costing system for internal decision-making purposes. The company has four activity cost pools as listed below: Activity Cost Pool Activity Measure Activity Rate Order size Number of direct labor-hours $ 16.60 per direct labor-hour Customer orders Number of customer orders $ 355.00 per customer order Product testing Number of testing hours $ 75.00 per testing hour Selling Number of sales calls $ 1,481.00 per sales call The managing director of the company would like information concerning the cost of a recently completed order for heavy-duty trailer axles. The order required 180 direct labor-hours, 20 hours of product testing, and 2 sales calls. Required: What is the total overhead cost assigned to the order for heavy-duty trailer axles? ABC Cost Activity Cost Pool Order size Customer orders Product testing Selling Total overhead cost $ Fogerty Company makes two products-titanium Hubs and Sprockets. Data regarding the two products follow: Direct Labor-Hours per Unit Annual Production Hubs 24,000 units Sprockets 0.20 47,000 units Additional information about the company follows: 0.60 a. Hubs require $35 in direct materials per unit, and Sprockets require $19. b. The direct labor wage rate is $12 per hour. C. Hubs require special equipment and are more complex to manufacture than Sprockets. d. The ABC system has the following activity cost pools: Activity Sprockets 68 0 NA Total 153 4,000 NA Estimated Overhead Activity Cost Pool (Activity Measure) Cost Hubs Machine setups (number of setups ) $ 16,065 85 Special processing (machine-hours) $ 160,000 4,000 General factory (organization-sustaining) $ 146,000 NA Required: 1. Compute the activity rate for each activity cost pool. 2. Determine the unit product cost of each product according to the ABC system. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the activity rate for each activity cost pool. Activity Cost Pool Machine setups Special processing Activity Rate per setup per MH murod 2 > Fogerty Company makes two products-titanium Hubs and Sprockets. Data regarding the two products follow: Direct Labor-Hours per Unit Annual Production Hubs 0.60 24,000 units Sprockets 0.20 47,000 units Additional Information about the company follows: a. Hubs require $35 in direct materials per unit, and Sprockets require $19. b. The direct labor wage rate is $12 per hour. c. Hubs require special equipment and are more complex to manufacture than Sprockets. d. The ABC system has the following activity cost pools: Activity Cost Pool (Activity Measure) Machine setups (number of setups) Special processing (machine-hours) General factory (organization-sustaining) Estimated Overhead Cost $ 16,065 $ 160,000 $ 146,000 Hubs 85 4,000 NA Activity Sprockets 68 0 NA Total 153 4,000 NA Required: 1. Compute the activity rate for each activity cost pool. 2. Determine the unit product cost of each product according to the ABC system. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine the unit product cost of each product according to the ABC system. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Hubs Sprockets Direct materials Direct labor Overhead Unit cost

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

Auditing A Complete Guide

Authors: Gerardus Blokdyk

2023rd Edition

1038805538, 978-1038805539

More Books

Students also viewed these Accounting questions

Question

6. Explain the power of labels.

Answered: 1 week ago

Question

5. Give examples of variations in contextual rules.

Answered: 1 week ago

Question

f. What stereotypes were reinforced in the commercials?

Answered: 1 week ago