Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Tristar Manufacturing produces two types of battery-operated toy soldiers: infantry and special forces. The soldiers are produced by using one continuous process. Four activities have

Tristar Manufacturing produces two types of battery-operated toy soldiers: infantry and special forces. The soldiers are produced by using one continuous process. Four activities have been identified: machining, setups, receiving, and packing. Resource drivers have been used to assign costs to each activity. The overhead activities, their costs, and the other related data are as follows:

Product

Machine Hours

Setups

Receiving Orders

Packing Orders

Infantry

20,000

300

900

1,600

Special forces

20,000

100

100

800

Costs

$80,000

$24,000

$18,000

$30,000

Required:

  1. Calculate the total overhead assigned to each product by using only machine hours to calculate a plantwide rate.
  2. Calculate consumption ratios for each activity. (Round to two decimal places.)
  3. Calculate a rate for each activity by using the associated driver. (Round to two decimal places.)
  4. Assign the overhead costs to each product by using the activity rates computed in Requirement 3.
  5. Conceptual Connection Comment on the difference between the assignment in Requirement 1 and the activity-based assignment.

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

Internal Auditing Assurance And Advisory Services

Authors: Kurt R. Reding, Paul J. Sobel, Urton L. Anderson, Michael J. Head, Sridhar Ramamoorti, Mark Salamasick, Cris Riddle

3rd Edition

0894137409, 978-0894137402

More Books

Students also viewed these Accounting questions

Question

4. How would you deal with the store manager?

Answered: 1 week ago