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- Window Help 6.05 GB U 55D ... Home Thu Fe AutoSave @ S Insert Draw Page Layout Calibri (Body) 12 Data Review Lab 4

- Window Help 6.05 GB U 55D ... Home Thu Fe AutoSave @ S Insert Draw Page Layout Calibri (Body) 12 Data Review Lab 4 - Chapter 17 - ABC Costing problem View Formulas A A General H79 1 Name 2 ACC 214 - Lab 4 Chapter 17 (ABC Casting) Use cell references formulas in highlighted cells The Hi ngston Corporation produces three products Product Product and Product Direct Labor * Manufacturing Overhead $20 per hour is the estimated direct labor cost. $1,050,000 estimated total cost Products 11 Number of units to be produced 12 Number of machine hours expected to be used 11 Number of direct labor hours expected to be used 30,000 2,700 20.000 20.000 3200 7.500 50,000 100 30.500 10 15 Part 11 calculate the total cost of producing each product and 16 the average cost per unit allocating MOH as described below. Fint calculate the overhead application rates. $1.100.000 $400,000 $60.000 $150,000 $325,000 $60,000 $1,90.000 $610.000 18 Total Direct Materials Used 19 Total Direct Labor Cost 20 located amount of MOH applied using direct labor hours as the factory wide cost driver Total Cost Overhead application rate using hours Average cost per unit 16 Part 2: calculate the total cost of producing each product and the average cost per unit allocating MOH as described below. $1.100.000 $400.000 $40.000 $150,000 $125.000 $60.000 $1.905,000 5610.000 9 Total Direct Materials Used Total Direct Labor Cost Sheet1 MacBook Excel File Edit View Insert Format oo AutoSaven o u Home Insert Draw Page Layout Formulas Tools Data Window Help Lab 4 - Chapter 17 - ABC Costing problem Data Review View Calibri (Bodyt 12 A A BTULOA * fx General S % Conditional Form Format as Table Styles Poste 179 9 : Use cell references/Formulas in highlighted cells Name ACC 214 -- Lab 4: Chapter 17 (ABC Costing) The Hitt/Kingston Corporation produces three products Product Product Y and Product 2. Direct Labor Manfacturing Overhead $20 per hour is the estimated direct labor cost. $1,850,000 estimated total cost Products Number of units to be produced Number of machine hours expected to be used Number of direct labor hours expected to be used 30,000 2.700 20.000 20,000 3,200 7.500 10,000 2,200 3.000 Total 60,000 8,100 30 SOO Part 1: calculate the total cost of producing each product and the average cost per un allocating MOH as described below $1,100,000 $400,000 $450,000 $150,000 $325,000 $60,000 $1.905,000 $610.000 Total Direct Materials Used Total Direct Labor Cost Allocated amount of MOH applied using direct labor hours as the factory wide cost driver Total Cost Average cost per unit Part 2: calculate the total cost of producing each product and the average cost per unit locating MOH as described below. Total Direct Materials Used Total Direct Labor Cost Sheet1 $1,100,000 $400,000 $480,000 $150,000 $325,000 $60,000 $1.905,000 S610.000 MacBook FUN 5 Ture EU $ % & ' Dule Format Cell Styles Id Sort & Filter X Find & Select HT I L M N O P Q R cell references/formulas in highlighted cells oducts 0,000 3,200 10,000 2,200 3,000 Total 60,000 8,100 30,500 7,500 Hint: First-calculate the overhead application rate(s). 480,000 5150,000 $325,000 $60,000 $1,905,000 $610,000 Overhead application rate using DL hours. $480,000 $150,000 $325,000 $60,000 $1,905,000 $610,000 MacBook Tools 54% Thu Feb 20 3:59 Data Excel File Edit View Insert Format . AutoSave B S . Home Insert Draw Page Layout Formulas Calibri (Body 12 A A 3 BTULOA H79 * fx Data Window Help 6.10 GB Lab 4 - Chapter 17 - ABC Costing problem Review View General Conditional Formatting Format as Table $ -% 88 88 Call Styles En 3 Delete Format 2.97 2 Sort & X - Filter 7 Findd Select 25 Part 2: calculate the total cost of producing each product 27 and the average cost per unit allocating MOH as described below. $1,100,000 $480,000 $150 $190. 29 Total Direct Materials Used 3 Total Direct Labor Cost 31 Allocated amount of NOW applied using machine hours as the factory wide cost driver Total Cost pollication rate using Machine hours Average cost per unit 37 Part 3: You decide to see if using activity based costing will provide a different, perhaps more accurate result for the werage cost of producing each 38 Calculate the total cost of producing each product and the average cost per unit allocating MOW as described below. of pre 10 You get the following information about the overhead costs: Estimated amount of 42 Activity Cost driver cost driver med for Product X Product Product Total Estimated Amount of Overhead as Setup of machines 46 Drilling 47 Assembly spection of setups # of machine hours Wof direct labor hours of inspections 2.700 20000 3200 7500 2,200 3000 $100 0500 500.000 $910000 $425.000 $215.000 $1,850,000 Overhead application rate for machine stup Overhead application rate for drilling Overhead appliation rate for sembly Overhead application rate for inspection 100 $1.100 000 $400 000 $40,000 $150,000 $325,000 $60.000 $1,905,000 $610,000 51 Total Direct Materials Used 52 Total Direct Labor Cost Allocated MOH 54 Setup of machines Sheet 90521@OOM LT1000 % 41000 *** MacBook 6.10 GB Excel File Edit View Insert Format ... AutoSave R S S Home Insert Draw Page Layout Formulas Tools Data Window Help Lab 4 - Chapter 17 - ABC Costing problem Data Review View 12 AA General 1 Calibri (Body) BIU fx Conditional Formatting Format as Table Styles Paste H79 22 x 26 Part 2: calate the total cost of producing each product 27 and the average cost per unit allocating MOH as described below $19050 $1,100.000 $400.000 40.000 $150,000 35.000 $60,000 29 Total Direct Materials Used 30 Total Direct Labor Cost 31 Allocated amount of MOH applied using machine hours as the factory wide cost driver Total Cost Average cost per unit 37 Part: You decide to see using activity-based costing provide aderent, perhaps more 38 Calculate the total cost of producing each product and the average cost per un allocating MOHON t resu 40 You get the following information about the overhead costs: Estimated amount of 42 Activity Cost driver cost driver used for Product Product Product Z Overhead 45 Setup of machines 46 Drilling 47 Assembly 43 Inspection of setups of machine hours of direct labor hours of inspections $300.000 $10.00 $4 .000 $215.000 $1.100.000 $400,000 S480.000 $150,000 $325,000 $50,000 $10.000 $510.000 51 Total Direct Materials Used 52 Total Direct Labor Cost 53 Allocated MOH 54 Setup of machines Sheet1 MacBook D Delete % , Format as Table Cell Styles - 7 Ideas J ZU Sort & X Filter Format Find & Select I J K L M N O P Q R S $325,000 $60,000 $1,905,000 $610,000 Overhead application rate using Machine hours. esult for the average cost of producing each unit of product. bed below. Total Estimated Amount of Overhead 250 8100 30500 100 $300,000 $910,000 $425,000 $215,000 $1,850,000 Overhead application rate for machine setup Overhead application rate for drilling Overhead appliation rate for assembly Overhead application rate for inspection $1,905,000 $610,000 x x MacBook Excel File Edit View Insert . AutoSave A s Home Insert Draw Page Layout Format Tools . Formulas Data Data Window Help 6.09 GB Lab 4 - Chapter 17 - ABC Costing problem Review View Conditional Formatting General Format as Table $ - % 58.48 Cal Styles Calibri (Body) 12 A A 3 BTUEA 2 v fx H79 37 Part 3: You decide to see if using activity based costing will provide a different perhaps more accurate result for the average cost of producing each wit of product 38 Calculate the total cost of producing each product and the average cost per unit e ti MOHOs described below 40 You get the following information about the overhead costs Estimated amount of 12 Activity Cost driver cost driver used for Product Product Product Total Estimated Amount of Overhead 45 Setup of machines 46 Drilling 47 Assembly Inspection of setups of machine hours of direct labor hours of inspections $300,000 5910,000 $425,000 $215.000 SLS 000 $1,100,000 $400,000 $480,000 $150,000 $325,000 $60,000 $1,905,000 $610,000 51 Total Direct Materials Used 52 Total Direct Labor Cost 53 Allocated MOH 54 Setup of machines 55 Drilling 56 Assembly 57 Inspection 58 Total Allocated MOH 60 Total Costs Average cost per unit 64 Part 4 Assume your company decided to use direct labor hours as the cost driver to allocate manufacturing overhead costs to its produced (part 1) Using direct labor hours to allocate overhead means that your company decided not to use machine hours (part 2) or activity based costing AB Sheet1 + MacBook apter 17 - ABC Costing problem Share Comm. Conditional Formatting 03 Format as Table Cell Styles Insert Delete Format 28 38 Sort & Filter Sensitivity Ideas X Find & Select KL N O P Q R S For the average cost of producing each unit of product low. Estimated Amount of Overhead 250 8100 30500 100 $300,000 $910,000 $425,000 $215,000 $1,850,000 Overhead application rate for machine setup Overhead application rate for drilling Overhead appliation rate for assembly Overhead application rate for inspection $1,905,000 $610,000 manufacturing overhead costs to units produced (part 1). use machine hours (part 2) or activity-based costing (ABC) (part 3). + 100 MacBook U . Home : Formulas Data Review AutoSave O S Insert Draw Page Layout Calibri (Body) 12 BLUE v fx Lab 4 - Chapter 17 - ABC Costing problem View General Conditional Formatting Formatas Table $ % 9 88-28 Cell Styles A A LA Delete Format este H79 a MNO 60 Total Costs Average Cost per unit Assume your company decided to use direct labor hours as the cost driver to allocate manufacturing overhead costs to units produced (part 1). Using direct labor hours to allocate overhead means that your company decided to use machine hours (part 2) or activity-based costing (ABQ (part 3). Did your company choose the best approach to allocate manufacturing overhead costs to determine total costs and cost per unit? Why or why not? Write a short peragraph to explain Answer: Sheett MacBook