Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A company makes two products - Widgets and Spindles. Data regarding the two products follow: Direct Labor- Hours Widgets Spindles per Unit 0.90 0.50 Annual

image text in transcribedimage text in transcribedimage text in transcribed

A company makes two products - Widgets and Spindles. Data regarding the two products follow: Direct Labor- Hours Widgets Spindles per Unit 0.90 0.50 Annual Production 18,000 units 43,000 units Additional information about the company follows: a. Widgets require $23 in direct materials per unit, and Spindles require $14. b. The direct labor wage rate is $17 per hour. c. Widgets are more complex to manufacture than Spindles and they require special processing. d. The company's activity-based absorption costing system has the following activity cost pools: Activity Cost Pool (and Activity Measure) Machine setups (number of setups) Special processing (machine-hours) General factory (Direct labor-hours) Estimated Overhead Cost $ 25,920 $ 123,000 $ 339,300 Expected Activity Widgets Spindles Total 120 96 216 4,100 4,100 16,200 21,500 37,700 Required: 1. Compute the activity rate for each activity cost pool. 2. Compute the unit product cost for Widgets and Spindles using activity-based absorption costing. 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 General factory Activity Rate per setup per MH per DLH Required 1 Required 2 > Required: 1. Compute the activity rate for each activity cost pool. 2. Compute the unit product cost for Widgets and Spindles using activity-based absorption costing. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the unit product cost for Widgets and Spindles using activity-based absorption costing. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Widgets Spindles Direct materials Direct labor Manufacturing overhead Unit product cost $ 0.00 $ 0.00

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_2

Step: 3

blur-text-image_3

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

Financial Analysis And Decision Making

Authors: David E. Vance

1st Edition

0071406654, 9780071406659

More Books

Students also viewed these Accounting questions

Question

Leaming Assessment Analytics Eghth grade

Answered: 1 week ago

Question

3. What is my goal?

Answered: 1 week ago

Question

2. I try to be as logical as possible

Answered: 1 week ago