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Treviso Manufacturing Company has developed the attached information relating to manufacturing overhead activity cost pools and the related cost drivers for its manufacturing activities for
Treviso Manufacturing Company has developed the attached information relating to manufacturing overhead activity cost pools and the related cost drivers for its manufacturing activities for X
The actual production information for X is also attached.
The company is currently using traditional costing using units produced as the allocation base cost driver to apply manufacturing overhead to production.
REQUIRED:
Using the attached answer sheet, calculate the predetermined manufacturing overhead rate that the company would use under traditional costing. Round your calculation to five decimal places.
Using the attached answer sheet, calculate the total costs and the cost per unit for each product, using traditional costing. Round all calculations for costs to the nearest whole dollar and the costs per unit to three decimal places.
Using the attached answer sheet, calculate the predetermined manufacturing overhead rates that the company would use under activity based costing.
Round all calculations to five decimal places.
Using the attached answer sheet, calculate the total costs and the cost per unit for each product, using activity based costing. Round all calculations for costs to the nearest whole dollar and the costs per unit to three decimal places.
TREVISO MANUFACTURING COMPANY
COST POOLS AND COST DRIVERS FOR ACTIVITY BASED COSTING
Activity Center
Budgeted Activity Cost
Budgeted Cost Driver
Materials Handling
$
kilograms
Setup
Machine Operations
setups
machine hours
Inspection
Packaging
batches
units produced
Total Cost
$
TREVISO MANUFACTURING COMPANY
ACTUAL PRODUCTION INFORMATION
FOR YEAR X
Product A
Product B
Specialties
Direct Materials Used
kg
kg
kg
Direct Materials Cost
$
$
$
Direct Labor Cost
$
$
$
Number of Setups
Machine Hours Used
Number of Batches
Number of Units Produced
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