![]() ![]() Hickory Company manufactures two products - 15,000 units of Product Y and 7,000 units of Product Z. What is the activity rate for the General Factory activity cost pool? What is the activity rate for the Product Design activity cost pool?Ħ. What is the activity rate for the Machine Setups activity cost pool?ĥ. What is the activity rate for the Machining activity cost pool?Ĥ. Using the plantwide overhead rate, how much manufacturing overhead cost is allocated to Product Y and Product Z?ģ. What is the company's plantwide overhead rate?Ģ. Please provide the distribution of resource consumption across activity cost pools and the sales and direct cost data to complete the calculations.ġ. In conclusion, we cannot compute the product margins for Product WI and Product MB without the missing information. The sales and direct cost data are not provided in the question, so we cannot complete this step. Step 3: Combine sales and direct cost data with Machining and Order Filling costs to determine product margins ![]() However, we cannot complete this step without the allocated costs from Step 1. Orders (Order Filling): Product WI - 800, Product MB - 200 Machining costs are assigned to products using machine-hours (MHs), and Order Filling costs are assigned to products using the number of orders. Step 2: Assign activity costs to products The distribution of resource consumption across activity cost pools is not provided in the question, so we cannot complete this step. We need to allocate these costs to three activity cost pools: Machining, Order Filling, and Other. We have two overhead costs: Equipment depreciation (92,000) and Supervisory expense (4,000). Step 1: Allocate overhead costs to activity cost pools In the second stage Machining costs are assigned t0 products using machine-hours (MHs) and Order Filling costs are assigned t0 products using the number of orders_ The costs In the Other activity cost pool are not assigned t0 products_ 'Doede Corporation uses activity-based costing to compute product margins: In the first stage the activity-based costing system allocates two overhead accounts equipment depreciation and supervisory expense-to three activity cost pools-Machining Order Filling and Other-based on resource consumption Data t0 perform these allocations appear below: In the second stage Machining costs are assigned t0 products using machine-hours (MHs) and Order Filling costs are assigned t0 products using the number of orders The costs In the Other activity cost pool are not assigned t0 productsįinally: sales and direct cost data are combined with Machining and Order Filling costs determine product margins Overhead costs Equipment depreciation Supervisory expenseĭistribution of Resource Consumption Across Activity Cost Pools:Īctivity Cost Pools Machining Order FillingĮquipment depreciation Supervisory expense SOLVED: 'Doede Corporation uses activity-based costing to compute product margins: In the first stage the activity-based costing system allocates two overhead accounts equipment depreciation and supervisory expense–to three activity cost pools-Machining Order Filling and Other-based on resource consumption Data t0 perform these allocations appear below:
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |