RequGable Company uses three activity cost pools. Each pool has a cost driver. Information for Gable Company follows:Activity Cost PoolsMachiningDesigning costsSetup costsNumber of machine hoursNumber of design hoursNumber of batchesSuppose that Gable Company manufactures three products, A, B, and C. Information about these products follows:Product A Product B Product C26,0002,80040Total Costof PoolCost Driver$250,600 Number of machine hours61,600 Number of design hours66,402 Number of batchesProduct AProduct BProduct CTotal OverheadAssigned36,0001,600170EstimatedCost Driver71,6007,0004659,6002,600255Required:1. Using activity proportions, determine the amount of overhead assigned to each product. (Do not round your intermediatecalculations. Round your final answers to nearest whole number.)

Activity Rate :— It is the rate used to allocate manufacturing overhead cost to cost object under…

Requ Gable Company uses three activity cost pools. Each pool has a cost driver. Information for Gable Company follows: Activity Cost Pools Machining Designing costs Setup costs Number of machine hours Number of design hours Number of batches Suppose that Gable Company manufactures three products, A, B, and C. Information about these products follows: Product A Product B Product C 9,600 26,000 2,800 2,600 40 255 Total Cost of Pool Cost Driver $250,600 Number of machine hours 61,600 Number of design hours 66,402 Number of batches Product A Product B Product C Total Overhead Assigned Estimated Cost Driver 71,600 7,000 465 36,000 1,600 170 Required: 1. Using activity proportions, determine the amount of overhead assigned to each product. (Do not round your intermediate calculations. Round your final answers to nearest whole number.)

Requ Gable Company uses three activity cost pools. Each pool has a cost driver. Information for Gable Company follows: Activity Cost Pools Machining Designing costs Setup costs Number of machine hours Number of design hours Number of batches Suppose that Gable Company manufactures three products, A, B, and C. Information about these products follows: Product A Product B Product C 9,600 26,000 2,800 2,600 40 255 Total Cost of Pool Cost Driver $250,600 Number of machine hours 61,600 Number of design hours 66,402 Number of batches Product A Product B Product C Total Overhead Assigned Estimated Cost Driver 71,600 7,000 465 36,000 1,600 170 Required: 1. Using activity proportions, determine the amount of overhead assigned to each product. (Do not round your intermediate calculations. Round your final answers to nearest whole number.)

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter4: Activity-based Costing

Section: Chapter Questions

Problem 8CE: Electan Company produces two types of printers. The company uses ABC, and all activity drivers are...

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Medical Tape makes two products: Generic and Label. It estimates it will produce 423,694 units of Generic and 652,200 of Label, and the overhead for each of its cost pools is as follows: It has also estimated the activities for each cost driver as follows: How much is the overhead allocated to each unit of Generic and Label?
Electan Company produces two types of printers. The company uses ABC, and all activity drivers are duration drivers. Electan Company is considering using DBC and has gathered the following data to help with its decision. A. Activities with duration drivers: B. Activities with consumption ratios and costs: C. Products with cycle time and practical capacity: Required: 1. Using cycle time and practical capacity for each product, calculate the total time for all primary activities. Comment on the relationship to ABC. 2. Calculate the overhead rate that DBC uses to assign costs. Comment on the relationship to a unit-based plantwide overhead rate. 3. Use the overhead rate calculated in Requirement 2 to calculate (a) the overhead cost per unit for each product, and (b) the total overhead assigned to each product. How does this compare to the ABC assignments shown in Part B of the Information set? 4. What if the units actually produced were 10,000 for Printer A and 18,000 for Printer B. Using DBC, calculate the cost of unused capacity.
Roberts Company produces two weed eaters: basic and advanced. The company has four activities: machining, engineering, receiving, and inspection. Information on these activities and their drivers is given below. Overhead costs: Required: 1. Calculate the four activity rates. 2. Calculate the unit costs using activity rates. Also, calculate the overhead cost per unit. 3. What if consumption ratios instead of activity rates were used to assign costs instead of activity rates? Show the cost assignment for the inspection activity.
The following product costs are available for Stellis Company on the production of erasers: direct materials, $22,000; direct labor, $35,000; manufacturing overhead, $17,500; selling expenses, $17,600; and administrative expenses; $13,400. What are the prime costs? What are the conversion costs? What is the total product cost? What is the total period cost? If 13,750 equivalent units are produced, what is the equivalent material cost per unit? If 17,500 equivalent units are produced, what is the equivalent conversion cost per unit?
The following product Costs are available for Haworth Company on the production of chairs: direct materials, $15,500; direct labor, $22.000; manufacturing overhead, $16.500; selling expenses, $6,900; and administrative expenses, $15,200. What are the prime costs? What are the conversion costs? What is the total product cost? What is the total period cost? If 7,750 equivalent units are produced, what is the equivalent material cost per unit? If 22,000 equivalent units are produced, what is the equivalent conversion cost per unit?
Using the data in P4-2 and Microsoft Excel: 1. Separate the variable and fixed elements. 2. Determine the cost to be charged to the product for the year. 3. Determine the cost to be charged to factory overhead for the year. 4. Determine the plotted data points using Chart Wizard. 5. Determine R2. 6. How do these solutions compare to the solutions in P4-2 and P4-3? 7. What does R2 tell you about this cost model?
! Required information Gable Company uses three activity pools. Each pool has a cost driver. Information for Gable Company follows: Activity Pools Machining Designing costs Setup costs Number of machine hours Number of design hours Number of batches Total Cost of Pool $ 171,100 45, 100 66,123 Suppose that Gable Company manufactures three products, A, B, and C. Information about these products follows: Product A Product B Product C Cost Driver Number of machine hours Number of design hours Number of batches Total Overhead Assigned Product A Product B 20,000 2,200 30,000 1,300 40 170 Estimated Cost Driver 59,000 5,500 465 Product C 9,000 2,000 255 Required: Using activity rates, determine the amount of overhead assigned to each product. Note: Do not round intermediate calculations. Round the final answer to nearest whole number.
Required information Gable Company uses three activity pools. Each pool has a cost driver. Information for Gable Company follows: Activity Pools Machining Designing costs Setup costs Number of machine hours Number of design hours Number of batches Total Cost of Pool $ 171,100 45, 100 66, 123 Suppose that Gable Company manufactures three products, A, B, and C. Information about these products follows: Product A 20,000 2,200 40 Product A Product B Product C Cost Driver Number of machine hours Number of design hours Number of batches Total Overhead Assigned Product B Product C 9,000 2,000 255 Estimated Cost Driver 59,000 5,500 465 30,000 1,300 170 Required: 1. Using activity proportions, determine the amount of overhead assigned to each product. Note: Do not round your intermediate calculations. Round your final answers to nearest whole number.
Your Company has two products: A and B. The company uses activity-based costing. The estimated total cost and expected activity for each of the company's three activity cost pools are as follows: Estimated Expected Activity Activity Cost Pool Cost Product A Product B Total Machine related $17,600 700 300 1,000 MH Batch setup $32,600 600 200 800 Setups Other $52,500 900 500 1,400 DLH What is the activity rate under the activity-based costing system for Batch setups? Group of answer choices $54.33 $40.75 $40.75 per Setup $16.30 $16.30 per Setup $54.33 per Setup
Gable Company uses three activity cost pools. Each pool has a cost driver. Information for Gable Company follows: Activity Cost Pools Total Cost of Pool Cost Driver Estimated Cost Driver Machining $ 183,300 Number of machine hours 61,100 Designing costs 47,725 Number of design hours 5,750 Setup costs 71,150 Number of batches 500 Suppose that Gable Company manufactures three products, A, B, and C. Information about these products follows: Product A Product B Product C Number of machine hours 21,000 31,000 9,100 Number of design hours 2,300 1,350 2,100 Number of batches 60 180 260 How would you find the total overhead?
of 3 bok nt ant ences Required information Gable Company uses three activity pools. Each pool has a cost driver. Information for Gable Company follows: Activity Pools Machining Designing costs Setup costs Number of machine hours Number of design hours. Number of batches Total Cost of Pool $ 222,420 55,900 72,726 Product A Product B Product C Cost Driver Number of machine hours Number of design hours Number of batches Suppose that Gable Company manufactures three products, A. B, and C. Information about these products follows: Product A 24,000 Product C 9,400 2,600 60 2,400 265 Total Overhead Assigned Product B 34,000 1,500 180 Required: 1. Using activity proportions, determine the amount of overhead assigned to each product. Note: Do not round your intermediate calculations. Round your final answers to nearest whole number. Estimated Cost Driver 67,400 6,500
Gable Company uses three activity pools. Each pool has a cost driver. Information for Gable Company follows: Total Cost of Pool $ 380, 120 86,400 74,672 Estimated Cost Driver 88,400 9,000 525 Activity Pools Machining Designing costs Setup costs E4-5 (Algo) Assigning Costs Using Activity Proportions [LO 4-5, 4-6] Suppose that Gable Company manufactures three products, A, B, and C. Information about these products follows: Product A 34,000 3,600 60 Number of machine hours Number of design hours Number of batches Cost Driver Number of machine hours Number of design hours Number of batches Product A Product B Product C Total Overhead Assigned Product B Product C 10,400 3,400 285 Required: 1. Using activity proportions, determine the amount of overhead assigned to each product. Note: Do not round your intermediate calculations. Round your final answers to nearest whole number. 44,000 2,000 180