Vie Tools Window Help Ch 058 (Empty) Insert Home Draw Formulas Review Page Layout Data View XLSTAT Tell me Calori 12 13 Wrap Test- A A a-A. General - % Conditional Pute A1 xf Managerial Accounting - Prof. ller D F Quinniplat Padfolio Club makes two products (Padfolios and Business Cards for students to use during interviews. The company has two production departments forming and Assembly and operates at capacity. The controller has asked you to compare plant wide, department, and 4 activity based cost allocation 5 Direct Material and Direct Labor is incurred in both production departments Forming & Assembly and is directly traced to the two product lines (Pacolios & Business Cards. There are also two types of overhead Setup & Supervision) incurred in the departments Overhead costs need to be allocated to the two product lines so the Guinniplac Padfolio Club can calculate the costs of each product line 5 8 Budreted information for the year ended December 31, 2017 is as follows: 9 10 Forming Department Padfolios Business Cards Total 11 Direct Materials 5 25,000 $ 24,000 $ 49,000 12 Direct Manufacturing Labor 5 41,000 $ 17,000 $ 58,000 10 Overhead Costs 14 Setup $ 22.500 15 Supervision $ 20.500 15 12 Assembly Department Padfolios Business Cards Total 18 Direct Materials 5 4,500S 20,000 $ 24,500 19 Direct Manufacturing Labor $ 17,500 $ 22,000 $ 39.500 Overhead Costs 21 Setup $ SO,000 22 Supervision 5 24,000 23 24 Other Information about the departments activities follows Setup costs in each department vary with the number of batches processed in each department. The budgeted number of batches for each product line 25 in each department is as follows: CH5 17004 MacBook Air Formatting Table AL G H x fx Managerial Accounting - Prof. Beg 8 D Setup Batches Padfollos Forming Department Assembly Department F Total 27 28 29 30 31 32 148 Business Cards 120 90 28 43 133 Supervision Costs: Vary with direct manufacturing labor costs in each department 1 Calculate the total budgeted cost of each product line (Padfolios vs. Business Cards) based on a single plant-wide overhead rate, total overhead is allocated based on total direct costs 33 34 (Direct costs should be traced to the products as identified above. Indirect costs should be allocated to the products based on a single overhead allocation rate.) 35 36 Budgeted Overhead Rate OH Rate 1 OH Pool Description OH Pool Amount Alloc Base Amount Alocation Rate Alles Base Description 37 38 39 40 41 42 43 44 45 46 47 Total Costs Assland Padfolios Business Cards Total 48 Total Direct Costs 49 50 CH5B + roma Toale Den Wind Viewer BE Ch 050 (Empty) Home insert Draw Data Beview View XLITAT Tume Calor Page Layout Forms 12A * a.A. General IN US- 1 www ge 5 % w Al 9x Managerial Accounting Prole D G 22 H 53 54 55 Total Owerhead Cuts Total Manufacturing Conta 2 Calculate the budgeted cost of each product line Padfolios le Cardbad on departmental overhead rates, where a) Forming department overed costs are located based on direct manufacturing laborate the former department, and b) Assembly department owerhead costs are located based on total direct cost of the embly department Direct costs should be traced to the products andereted above. Indirectos should be allocated to the products based on two overhead alocation rates-one for eachpartment 56 57 58 59 OH Pool Description Alloc OHL Pool Amet Buded Owerhede OH Rate 1 OH Rate 2 Amount Alocation Batt 61 63 54 65 56 62 Total Costs Ained Badoo Business Cards TO 69 20 Total Direct Co 23 72 TE CH 4 1 MacBook Air BO esc 3 * N # 3 $ 4 % 5 & 7 1 2 6 8 CHO Empty Insert Page Layout Femidas view View LSTAT Tel X Cali 13 - Genel AA A. 5 % 44 re A1 S X Maral Accounting Prode A G 75 Total Overhead Carts Total Manufacturing Costs TH 2 Dlate the budgeted cost of each product line Pacotes le Cardu Guin Padfolio Oub alates overhead cois each department using activity based cooking. Detach type of overhead in each department is located using the relevant activity in the department) 73 0 11 83 54 Direct could be traced to the products ascetifed above. Indirect costs should be located to the products based on for Overhead location rates are for each activity) ted OH Podl AllBase Alloc Derettate Dertion OH Pool Amount Amount Alocation Rate Description CH Rate 1 OH R2 OH Rate 3 OH Rate 4 25 21 89 90 Total Aged Befollos Business Total Total Direct Costs 95 Oy Total Overhead Costs CH MacBook Air esc 30 ODO 00014 its $ % GERS WE Altre Ch 068 Empty Home Insert Draw Page Layout Formulas Data Review View XISTAT Tell me A A General Parte 8T OLA $. % " Court Tawi A1 Managerial Accounting Prof. Beg D 80 (Direct costs should be traced to the products as identified above. Indirect costs should be alocated to the products based on four overhead allocation rates-one for each activity 81 82 OH Pool Description OH Pool Amount Allosas Amount Alocation Rate Alec Base Description 83 84 RS 85 87 88 Budsted Overhead Rate OH Rate 1 OH Rate 2 OH Rate 3 OH Rate 4 Total Costined Padfolios Business Cards Total 30 32 3 Total Direct Costs 5 Total Overhead Costs Total Manufacturing Costs CHSB + 2004 4 MacBook Air