Looking for Part B and C. Galvaset Indutries manufactures and sells custom-made

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Looking for Part B and C.

Galvaset Indutries manufactures and sells custom-made windows. Its job costing system was designed using an activity-based costing approach. Direct materials and direct labor costs are accumulated separately, along with information concerning three manufacturing overhead cost drivers (activities). Assume that the direct labor rate is $20 per hour and that there were no beginning inventories. The following information was available for 2010, based on an expected production level of 50,000 units for the year, which will require 200,000 direct labor hours:

The following production, costs, and activities occurred during the month of March:

Calculate the total manufacturing costs and the cost per unit of the windows produced during the month of March (using the activity-based costing approach).(Round "cost per unit produced" to 2 decimal places and the rest to the nearest dollar amount. Omit the "$" sign in your response.)

Assume instead that Galvaset Industries applies manufacturing overhead on a direct labor hours basis (rather than using the activity-based costing system previously described). Calculate the total manufacturing cost and the cost per unit of the windows produced during the month of March. (Hint:You will need to calculate the predetermined overhead application rate using the total budgeted overhead costs for 2010.)(Do not round your intermediate calculations. Round "cost per unit produced" to 2 decimal places and the rest to the nearest dollar amount. Omit the "$" sign in your response.)

Which approach do you think provides better information for manufacturing managers?

Galvaset Indutries manufactures and sells custom-made windows. Its job costing system was designed using an activity-based costing approach. Direct materials and direct labor costs are accumulated separately, along with information concerning three manufacturing overhead cost drivers (activities). Assume that the direct labor rate is $20 per hour and that there were no beginning inventories. The following information was available for 2010, based on an expected production level of 50,000 units for the year, which will require 200,000 direct labor hours:

Explanation / Answer

overhead costs: 325,000 2,340,000 5,000,000 = 7,665,000 overhead rate = OH costs/DLH = 7,665,000/200,000 = $38.325 total manufacturing cost: 142,000 343,600 (17,180*20) 658,423.50 (38.325*17,180) = 1,144,023.50 total manufacturing cost = 1,144,024 per unit: 1,144,023.50/3800 = $301.06 cost per unit = $301.06

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