head but wants to convert John Corporation uses a traditional costing method to
ID: 2611052 • Letter: H
Question
head but wants to convert John Corporation uses a traditional costing method to allocate over to activity-based costing. John produces Product X and Product Y. Produet hours of direct labor and Product Y requires 1 direct labor hour to produce a sing company has provided the following data concerning a activity-based costing systeni- requires 1.75 Total Cost Activity Cost Pools (and Activity Measures) $231 ,000 / tco Batch setup (setups) General factory (direct labor-hours).. $339,000 / 100cc: S193,200 4OB.6 Total Activity Product Y 7,000 6,000 10,500 Product X Total 10,000 10,000 14,000 Activity Cost Pools Machine related (machine hours)... 3,000 4,000 General factory (direct-labor hours).. 3,500 Batch setup (number of setups). 24. The predetermined overhcad rate per direct-labor hour under the traditional costing system is closest to: A)S 42.30 B) S 109.03 C)S 54.51 D) None of the above. 25. The predetermined overhead rate for machine related cost group under activity based costing system is: A) $23.10 $13.80 C) $33.90 D) None of the above 26. The predetermined overhead rate for batch setup cost group under system is A) $23.10 ) S13.80 $33.90 None of the above.Explanation / Answer
24. Answer: Option C) $54.51
Predetermined overhead rate = Total overheads / Total direct labor hours = ($231000 + $339000 + $193200)/14000 = $763200/14000 = $54.51 per direct labor hour
25. Answer: Option A) $23.10
Predetermined overhead rate = $231000 / 10000 = $23.10
26. Answer: Option C) $33.90
Predetermined overhead rate = $339000 / 10000 = $33.90
27. Answer: Option B) $13.80
Predetermined overhead rate = $193200 / 14000 = $13.80
28. Answer: Option C) $126.60
29. Answer: Option A) $48.57
30. Answer: $95.39
$54.51 x 1.75 DLH = $95.39
31. Answer: $54.51
$54.51 X 1 DLH = $54.51
Activity Cost Pool Activity rate $ Total Activity Total overhead cost $ Machine related 23.10 3000 69300 Batch setup 33.90 4000 135600 General factory 13.80 3500 48300 Total overhead cost $ 253200 No. of units produced (3500 DLH/1.75) 2000 Overhead cost per unit $ 126.60Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.