![Edwardwall](/avatars/17627.jpg)
Edwardwall
21.10.2020 •
Business
Exercise 17-5 Assigning costs using ABC LO P3 Xie Company identified the following activities, costs, and activity drivers for this year. The company manufactures two types of go-karts: Deluxe and Basic. Activity Expected Costs Expected Activity Handling materials $ 625,000 100,000 parts Inspecting product 900,000 1,500 batches Processing purchase orders 105,000 700 orders Paying suppliers 175,000 500 invoices Insuring the factory 300,000 40,000 square feet Designing packaging 75,000 2 models Assume that the following information is available for the company’s two products for the first quarter of this year. Deluxe Model Basic Model Production volume 10,000 units 30,000 units Parts required 20,000 parts 30,000 parts Batches made 250 batches 100 batches Purchase orders 50 orders 20 orders Invoices 50 invoices 10 invoices Space occupied 10,000 sq. ft. 7,000 sq. ft Models 1 model 1 model Required: Compute activity rates for each activity and assign overhead costs to each product model using activity-based costing (ABC). What is the overhead cost per unit of each model? (Round activity rate and average OH cost per unit answers to 2 decimal places.)
Solved
Show answers
More tips
- S Sport When will the Biathlon World Championships 2011 take place in Khanty-Mansiysk? Answers to frequently asked questions...
- O Other What is a Disk Emulsifier and How Does it Work?...
- F Family and Home What does a newborn need?...
- F Family and Home Choosing the Right Car Seat for Your Child: Tips and Recommendations...
- F Food and Cooking How to Get Reconfirmation of Registration?...
- C Computers and Internet How to Get Rid of Spam in ICQ?...
- A Art and Culture Who Said The Less We Love a Woman, the More She Likes Us ?...
- F Family and Home How to Get Rid of Your Neighbors?...
- S Society and Politics How Could Nobody Know About the Dead Mountaineers?...
- H Health and Medicine How to Cure Adenoids?...
Answers on questions: Business
- B Business In 2014, the spanish government passed a law to change a regulation, known as the beckham law on foreign athletes. this new law will require foreign professional athletes...
- B Business Over the past few years, airlines have tended to compete in the market for intercontinental business class travelers on the basis of: a) price. b) cost. c) timeliness...
- B Business On dec. 20, x-mart received a $100 allowance because the merchandise it purchased on account, earlier in the month, was of poor quality. demonstrate the required journal...
- B Business All of the following statements pertaining to investment advisers (ias) possessing the funds of clients are true except: [a] possession of funds by a custodian that meets...
- B Business Which of the following is a measure of economic growth that is most useful for measuring changes in the overall size of an economy? a. growth in nominal gdpb. decreases...
- B Business Do you think celebrities would use...
- B Business 3 Drag the tiles to the correct boxes to complete the pairs. Match the stages of the Buying Decision Process to the scenarios that describe each stage....
- B Business In which three areas did NAFTA reduce or eliminate tariffs?...
- B Business To determine the dutiable status of goods, it is necessary to know their classification, country of origin, and details pertaining to:.a. Perishable/non-perishable status.b....
- B Business A stock has an average return of 13.6% and a standard deviation of 8.4%. In any one given year, you have a 95% chance that you will not lose more than % nor earn more...
Ответ:
Instructions are below.
Explanation:
First, we need to calculate the activity rate for each activity:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Handling materials= 625,000/100,000= $6.25 per part
Inspecting product= 900,000/1,500= $600 per batch
Processing= 105,000/700= $150 per order
Paying suppliers= 175,000/500=$350 per invoice
Insuring the factory= 300,000/40,000= $7.5 per square feet
Designing packaging= 75,000/2= $37,500 per model
Now, we can allocate overhead to each model:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Deluxe:
Handling materials= 6.25*20,000= 125,000
Inspecting product= 600*250= 150,000
Processing= 150*50= 7,500
Paying suppliers= 350*50= 17,500
Insuring the factory= 7.5*10,000= 75,000
Designing packaging= 37,500*1= 37,500
Total allocated overhead= $412,500
Basic:
Handling materials= 6.25*30,000= 187,500
Inspecting product= 600*100= 160,000
Processing= 150*20= 3,000
Paying suppliers= 350*10= 3,500
Insuring the factory= 7.5*7,000= 52,500
Designing packaging= 37,500*1= 37,500
Total allocated overhead= $444,000
Finally, the unitary overhead:
Deluxe= 412,500/10,000= $41.25
Basic= 444,000/30,000= $14.8
Ответ:
: To solve problems for the area of a reduced or enlarged figure, first square the scale factor. Then use the given dimensions to find the area of the original figure. Multiply the square of the scale factor by the area of the original to get the reduced or enlarged figure.
Step-by-step explanation: