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This is all one question, just multiple parts. Please help!!! College Supply Company (CSC) makes three types of drinking glasses: short, medium, and tall. It
This is all one question, just multiple parts. Please help!!!
College Supply Company (CSC) makes three types of drinking glasses: short, medium, and tall. It presently applies overhead using a predetermined rate based on direct labor-hours. A group of company employees recommended that CSC switch to activity-based costing and Identified the following activities, cost drivers, estimated costs, and estimated cost driver units for Year 5 for each activity center Activity Setting up production Processing orders Handling materials Using machines Providing quality management Packing and shipping Recommended Cost Driver Number of production runs Number of orders Pounds of materials Machine-hours Number of inspections Units shipped Estimated Cost $ 30,000 48, eee 14, eee 70, eee 56, eee 4e, eee $ 258, eee Estimated cost Driver Units 100 runs 2ee orders 7,eee pounds 10, eee hours 40 inspections 2e, eee units In addition, management estimated 2.000 direct labor-hours for year 5. Assume that the following cost driver volumes occurred in February. year 5. Short 1,200 $3,eee 110 Medium 600 $2,5ee 130 Number of units produced Direct materials costs Direct labor-hours Number of orders Number of production runs Pounds of material Machine-hours Number of inspections Units shipped mm 30 300 see 1,200 Direct labor costs were $20 per hour. Required: a. Compute a predetermined overhead rate for year 5 for each cost driver recommended by the employees. Also compute a predetermined rate using direct labor-hours as the allocation base. b. Compute the production costs for each product for February using direct labor hours as the allocation base and the predetermined rate computed In requirement a c. Compute the production costs for each product for February using the cost drivers recommended by the employees and the predetermined rates computed in requirement a. (Note: Do not assume that total overhead applied to products In February will be the same for activity-based costing as it was for the labor-hour-based allocation.) cosung and identified the following activities, cost drivers, estimated costs, and estimated cost driver units for Year 5 for each activity center. eBook Recommended Cost Driver Number of production runs Number of orders Pounds of materials Machine-hours Number of inspections Units shipped Activity Setting up production Processing orders Handling materials Using machines Providing quality management Packing and shipping eferences Estimated Costi $ 30,000 48.000 14,000 70,000 56,000 40,000 $258,000 Estimated cost Driver Units 180 runs 200 orders 7,880 pounds 10,000 hours 40 inspections 20,000 units In addition, management estimated 2,000 direct labor-hours for year 5. Assume that the following cost driver volumes occurred in February, year 5. Medium Short 1,200 $3,000 600 $2,500 130 $2,000 110 110 Number of units produced Direct materials costs Direct labor-hours Number of orders Number of production runs Pounds of material Machine-hours Number of inspections Units shipped 300 500 1,200 Direct labor costs were $20 per hour. Required: A Comnute anredeterminer overhead rate for wear 5 for each rost driver recommended by the emnloveee Also computea Direct labor costs were $20 per hour. Required: a. Compute a predetermined overhead rate for year 5 for each cost driver recommended by the employees. Also compute a predetermined rate using direct labor-hours as the allocation base. b. Compute the production costs for each product for February using direct labor hours as the allocation base and the predetermined rate computed in requirement a. c. Compute the production costs for each product for February using the cost drivers recommended by the employees and the predetermined rates computed in requirement a. (Note: Do not assume that total overhead applied to products in February will be the same for activity-based costing as it was for the labor-hour-based allocation.) Complete this question by entering your answers in the tabs below. Required A Required B Required Compute a predetermined overhead rate for year 5 for each cost driver recommended by the employees. Also compute a predetermined rate using direct labor-hours as the allocation base. (Round your answers to 2 decimal places.) Allocation Rate per run Activity Setting up production Processing orders Handling materials Using machines Performing quality management Packing & shipping Direct labor hour rate I per order per lb per hour per insp per unit per hour U TVULLIO rebruary using the cost drivers recommended by the employees and predetermined rates computed in requirement a. (Note: Do not assume that total overhead applied to products in February same for activity-based costing as it was for the labor-hour-based allocation.) Complete this question by entering your answers in the tabs below. Required A Required B Required Compute the production costs for each product for February using direct labor-hours as the allocation base and the predetermined rate computed in requirement a. (Do not round intermediate calculations.) Short 3,000 Medium $ 2,500 Tall 2.000 $ $ Direct materials Direct labor Overhead Total costs Required A Required B Required C Compute the production costs for each product for February using the cost drivers recommended by the employees and the predetermined rates computed in requirement a. (Note: Do not assume that total overhead applied to products in February will be the same for activity-based costing as it was for the labor-hour-based allocation.) (Do not round intermediate calculations.) Show less Short 3,000 Medium $ 2,500 Tall 2,000 $ $ Direct materials Direct labor Setting up production Processing orders Handling materials Using machines Performing quality management Shipping Total costsStep by Step Solution
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