Daisy Company products two products, A AND B. THE FACTORY OVERHEAD COST INCLUDE
ID: 2425908 • Letter: D
Question
Daisy Company products two products, A AND B. THE FACTORY OVERHEAD COST INCLUDE THE FOLLOWING TWO ITEMS:
PLANT SUPERVISION $3,2000,000
SETUP LABOR (INDIRECT) 1,500,000
TOAL FACTOR OVERHEAD $4,700,000
THE FOLLOWING ACTIVITY-BASE USAGE AND UNIT PRODUCTION INFO IS FOR TWO PRODUCTS:
(# OF SET UPS) DIRECT LABOR HRS UNITS
PRODUCT A 1,000 160,000 10,000
PRODUCT B 4,000 160,000 10,000
TOTAL: 5,000 320,000 20,000
(A) TO DETERMINE THE SINGLE PLANTWIDE FACTORY OVERHEAD RATE, USING DIRECT LABORS AS THE ACTIVITY BASE:
(B) DETERMINE THE FACTORY OVERHEAD COST PER UNIT FOR PRODUCT A AND B, USING THE SINGLE PLANTWIDE FACTORY OVERHEAD RATE:
(C) DETERMINE THE ACTIVITY RATE FOR PLANT SUPERVISOR AND SET UP LABOR, ASSUMING THAT THE ACTIVITY BASE FOR SUPERVISION IS DIRECT LABOR HOURS AND THE ACTIVITY BASE FOR SETUP IS NUMBER OF SETUPS:
(D) DETERMINE THE FACTORY OVERHEAD COST PER UNIT FOR PRODUCT A AND B, USING ACTIVITY-BASED COSTING:
Explanation / Answer
(A) Determination of single plantwide factory overhead rate(using direct labours)
(B) Determination of factory overhead cost per unit of product.
(C) Determination of rate based on activity based costing
(D) Determination of factory overhead cost per unit for product A and B
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.