v2. CengageNOWwv2 1 Online teaching and Upgrade to macOS High Sierra Enjoy the l
ID: 2339811 • Letter: V
Question
v2. CengageNOWwv2 1 Online teaching and Upgrade to macOS High Sierra Enjoy the latest technologies and refinements to your favorite apps Instal #03 eBook Calculator Details 2 ALGO Multiple Versus Single Overhead Rates, Activity Drivers Deoro Company has identified the following overhead activities, costs, and activity drivers for the coming year: Activity Setting up equipment $494,100 Number of setups Ordering costs Machine costs Receiving Deoro produces two models of dishwashers with the following expected prime costs and activity demands 4.ALGO 6.ALGO Expected Cost Activity Driver Activity Capacity 610 18,300 42,100 8,600 ALGO 384,300 715,700 301,000 Number of orders Machine hours Receiving hours 4 ALGO 6.ALGO Model A Model B 1. ALGC 32 ALGO 38 ALGO 04.08 Direct materials Direct labor Units completed Direct labor hours Number of setups Number of orders Machine hours Receiving hours The company's normal activity is 7,400 direct labor hours $614,000 $451,000 16,600 5,400 430 6,700 24,100 2,300 $784,000 $481,000 7,500 2,000 180 11,600 18,000 6,300 quired 1. Determine the unit cost for each model using direct labor hours to apply overhead. Round intermediate calculations and final answers to nearest Previous Next Check My Work ess: 7/11 items for Grading All work saved nt Score: 49.26%Explanation / Answer
(1)
Model A
Model B
Direct Materials
614000
784000
Direct Labour
451000
481000
Overhead
(256.09 * 5400)
=1382886
(256.09 * 2000)
=512180
Total Cost (A)
2447886
1777180
Units completed (B)
16600
7500
Unit Cost (A/B)
147.46
236.96
*O/H Rate using Direct Labour Hrs = Total Overhead cost / Total Labour Hrs
= (494100 + 384300 + 715700 + 301000) / (5400 + 2000)
= 1895100/7400 = $256.09 per hour
(2)
Model A
Model B
Direct Materials
614000
784000
Direct Labour
451000
481000
Overhead:
Setting up Equipment
(494100/610) * 430
=348300
(494100/610) * 180
=145800
Ordering cost
(384300/18300) * 6700
=140700
(384300/18300) * 11600
=243600
Machine cost
(715700/42100) * 24100
=409700
(715700/42100) * 18000
=306000
Receiving
(301000/8600) * 2300
=80500
(301000/8600) * 6300
=220500
Total Cost (A)
2044200
2180900
Units completed (B)
16600
7500
Unit Cost (A/B)
123.14
290.79
(3) Four Activity Driver is the more accurate method
Model A
Model B
Direct Materials
614000
784000
Direct Labour
451000
481000
Overhead
(256.09 * 5400)
=1382886
(256.09 * 2000)
=512180
Total Cost (A)
2447886
1777180
Units completed (B)
16600
7500
Unit Cost (A/B)
147.46
236.96
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.