Tristar Manufacturing produces two types of battery-operated toy soldiers: infan

Question

Tristar Manufacturing produces two types of battery-operated toy soldiers: infantry and special forces. The soldiers are produced by using one continuous process. Four activities have been identified: machining, setups, receiving, and packing. Resource drivers have been used to assign costs to each activity. The overhead activities, their costs, and the other related data are as follows:

1. Calculate the total overhead assigned to each product by using only machine hours to calculate a plantwide rate. (Round overhead rate answer to two decimal places and other answers to the nearest dollar.)

The overhead rate is  per machine hour.

The total overhead assigned to the infantry product is .

The total overhead assigned to the Special Forces product is .

2. Calculate consumption ratios for each activity. (Round your answers to two decimal places.)

Consumption Ratios

3. Calculate a rate for each activity by using the associated driver.

4. Assign the overhead costs to each product by using the activity rates computed in Requirement 3.

Tristar Manufacturing

Overhead Assignment

1

Infantry

Special Forces

2

Machining

3

Setups

4

Receiving

5

Packing

6

Total

Product Machine Hours Setups Receiving Orders Packing Orders Infantry 19,000 330 810 1,680 Special Forces 19,000 110 90 840 Costs $68,400 $26,664 $16,020 $30,744

Explanation / Answer

1. Plant wide rate:

2.

3.

4.

Assignment

Estimated total overhead        1,41,828 Estimated machine hours           38,000 OH rate per hour               3.73 Product Hours used Rate OH applied Infantry 19000          3.73           70,914 Special forces 19000          3.73           70,914 Total 38000          3.73        1,41,828

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