5,800 The question is : 1) What is the company’s plantwide overhead rate? 2) Usi

Question

  

5,800    

The question is :

1) What is the company’s plantwide overhead rate?

2) Using the plantwide overhead rate, how much manufacturing overhead cost is allocated to Product Y and Product Z?

3) What is the activity rate for the Machining activity cost pool?

4) What is the activity rate for the Machine Setups activity cost pool?

5) What is the activity rate for the Product Design activity cost pool?

6) What is the activity rate for the General Factory activity cost pool?

7) Using the ABC system, how much total manufacturing overhead cost would be assigned to Product Y?

8) Using the ABC system, how much total manufacturing overhead cost would be assigned to Product Z?

9) Using the plantwide overhead rate, what percentage of the total overhead cost is allocated to Product Y and Product Z?

10) Using the ABC system, what percentage of the Machining costs is assigned to Product Y and Product Z?

11) Using the ABC system, what percentage of Machine Setups cost is assigned to Product Y and Product Z?

12) Using the ABC system, what percentage of the Product Design cost is assigned to Product Y and Product Z?

13) Using the ABC system, what percentage of the General Factory cost is assigned to Product Y and Product Z?

Activity Cost Pool Activity Measure Estimated Overhead Cost Expected Activity   Machining Machine-hours $ 213,400    11,000 MHs   Machine setups Number of setups $ 61,600    140 setups   Production design Number of products $ 78,000    2 products   General factory Direct labor-hours $ 244,000    13,200 DLHs

Explanation / Answer

In the below table I have answered most of the parts are answered. Kindly Read the answer carefully                            54.27 Activity Cost Pool Activity Measure Estimated Overhead Cost Expected Activity Cost per Activity No of Activity of Y Cost of Y for each Activity % Of Cost of Y in relation to total cost No of Activity of Z Cost of Z for each Activity % Of Cost of Z in relation to total cost    Machining Machine-hours           213,400.00           11,000.00 MHs                            19.40                        6,400.00    124,160.00 58.18%            4,600.00       89,240.00 41.82%    Machine setups Number of setups             61,600.00                 140.00 setups                          440.00                              60.00      26,400.00 42.86%                  80.00       35,200.00 57.14%    Production design Number of products             78,000.00                      2.00 products                    39,000.00                                1.00      39,000.00 50.00%                     1.00       39,000.00 50.00%    General factory Direct labor-hours           244,000.00           13,200.00 DLHs                            18.48                        7,400.00    136,787.88 56.06%            5,800.00     107,212.12 43.94%           597,000.00           24,342.00    326,347.88     270,652.12 1) Nothingis given in Question so I am assuming plantwide rate is computed on basis of Mach hr Plantwide O/H Rate = 597,000/11,000 Plantwide O/H Rate = 54.27 2) Particulars Y Z Machine-hours                       6,400.00                4,600.00 PlantwideO/H rate                             54.27                      54.27 Total Cost                  347,345.45           249,654.55

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