Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Wimbledon Corporation makes two types of tennis shoes-Challenger and Vapor. Data for the year for each shoe type follow: Direct materials per unit Direct labor

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

Wimbledon Corporation makes two types of tennis shoes-Challenger and Vapor. Data for the year for each shoe type follow: Direct materials per unit Direct labor cost per unit Direct labor-hours per unit Estimated annual production and sales Challenger $ 65.60 $ 19.00 1.4 DLHS 33,000 units Vapor $ 51.80 $ 13.80 1 DLHS 83,000 units The company applies manufacturing overhead to units based on direct labor-hours. Data concerning manufacturing overhead and direct labor-hours for the upcoming year appear below: Estimated total manufacturing overhead Estimated total direct labor-hours $2,687,360 129,200 DLHS Required: 1-a. Compute the predetermined overhead rate based on direct labor-hours. 1-b. Using the predetermined overhead rate and other data from the problem, determine the unit product cost of each product. 2. The company is considering replacing its conventional costing system with an activity-based costing system that would assign its manufacturing overhead to the following four activity cost pools: Activity Cost Pools and Activity Measures Supporting direct labor (direct labor-hours) Batch setups (setups) Product sustaining (number of products) General factory (machine-hours) Total manufacturing overhead cost Estimated Expected Activity Overhead Cost Challenger Vapor Total $ 988, 380 46,200 83,000 129,200 1,008,000 290 190 480 602,240 1 1 2 88,740 3,300 8,300 11,600 $2,687,360 Determine the activity rate for each of the four activity cost pools. 3. Using the activity rates and other data from the problem, determine the unit product cost of each product. Complete this question by entering your answers in the tabs below. Req 1A Reg 1B Reg 2 Reg 3 Compute the predetermined overhead rate based on direct labor-hours. (Round your answer to 2 decimal places.) Predetermined overhead rate per DLH Complete this question by entering your answers in the tabs below. Req 1A Req 1B Reg 2 Req 3 Using the predetermined overhead rate and other data from the problem, determine the unit product cost of each product. (Round your intermediate calculations and final answers to 2 decimal places.) Challenger Vapor Unit product cost Complete this question by entering your answers in the tabs below. Req 1A Req 1B Reg 2 Reg 3 Determine the activity rate for each of the four activity cost pools. (Round your "per DLH" and "per MHR" answers to 2 decimal places.) Activity Rate per DLH Activity Cost Pools Supporting direct labor Batch setups Product sustaining General factory per setup per product per MHR Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 2 Req 3 Using the activity rates and other data from the problem, determine the unit product cost of each product. (Round your intermediate calculations and final answers to 2 decimal places.) Challenger Vapor Unit product cost

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

Accounting

Authors: Michael J. Jones

3rd Edition

1119977185, 9781119977186

More Books

Students also viewed these Accounting questions

Question

Can negative outcomes associated with redundancy be avoided?

Answered: 1 week ago

Question

Understand the key features of recruitment and selection policies

Answered: 1 week ago