Accounting Chapter 04 Homework Enter the appropriate amounts in the shaded cell in columns

Ex 4-21 Name:

Enter the appropriate amounts in the shaded cell in columns D, F, H, and J.

1)

Activity

Cost x Usage Model X Model Y

Setting up equipment

Model X x

Model Y x

Ordering Materials

Model X x

Model Y x

Machining

Model X x

Model Y x

Receiving

Model X x

Model Y x

Total

2) Model X Model Y

Setting up equipment:

x

Machining

x

Total

Unit Overhead Cost

Ex 4-21 Name:

Enter the appropriate amounts in the shaded cell in columns D, F, H, and J.

1)

Activity

Cost x Usage Model X Model Y

Setting up equipment

Model X $840 x100 $84,000

Model Y $840 x50 $42,000

Ordering Materials

2) Model X Model Y

Setting up equipment:

$1,000 x100 100,000$

Unit Overhead Cost

SOLUTION

Prob 4-29 Name:

Enter the appropriate amounts in the shaded cells in columns E, G, I, and L.

1) Calculation of overhead rate

Overhead rate = Total overhead = =

Total DLH

Cost per unit Standard Deluxe

Prime costs:

Standard units x

Deluxe units x

Applied overhead:

Standard DLH x

Deluxe DLH x

Total cost

Divided by units produced

Cost per unit

2) Cost pools and pool rates Cost driver Activity rate

Rate 1: Maintenance

=

Rate 2: Engineering support

Rate 3: Materials handling

=

Rate 4: Setups

=

Rate 5: Purchasing

=

Rate 6: Receiving

=

Rate 7: Paying suppliers

=

Cost per unit Standard Deluxe

3) Prime costs: 4,500,000$ 5,250,000$

Applied overhead:

Rate 1:

Standard x

Deluxe x

Rate 2:

Standard x

Deluxe x

Rate 3:

Standard x

Deluxe x

Rate 4:

Standard x

Deluxe x

Number of orders

Number of invoices

Maintenance hours

Engineering hours

Number of moves

Number of setups

Number of requisitions

Rate 5:

Standard x

Deluxe x

Rate 6:

Standard x

Deluxe x

Rate 7:

Standard x

Deluxe x

Total cost

Divided by units produced

Cost per unit (ABC)

Cost per unit (UBC)

Prob 4-29 Name:

Enter the appropriate amounts in the shaded cells in columns E, G, I, and L.

1) Calculation of overhead rate

Overhead rate = Total overhead = 4,500,000$ = 30.00$ per DLH

Total DLH 150,000

Cost per unit Standard Deluxe

Prime costs:

Standard 30,000 units x 150.00$ 4,500,000$

Deluxe 15,000 units x 350.00$ 5,250,000$

Number of setups

2) Cost pools and pool rates Cost driver Activity rate

Rate 1: Maintenance

600,000$ 30,000 = 20.00$

Rate 2: Engineering support

900,000$ 45,000 20.00$

Rate 3: Materials handling

1,200,000$ 60,000 = 20.00$

Cost per unit Standard Deluxe

3) Prime costs: 4,500,000$ 5,250,000$

Applied overhead:

Rate 1:

Standard 20$ x 6,000 120,000

Deluxe 20$ x 24,000 480,000

SOLUTION

Maintenance hours

Engineering hours

Number of moves

Rate 5:

Standard 200$ x 750 150,000

Deluxe 200$ x 1,500 300,000

Prob 4-32 Name:

Enter the appropriate amounts in the shaded cells in columns E, G, I, and K.

1) Overhead rate = Estimated overhead =

Estimated labor hrs.

Overhead costs

dlh per unit xRate

Part #127 =

Part #234 =

Gross margin Part #127 Part #234

Selling price

Less: unit cost Prime Cost +Overhead

Part #127

Part #234

Unit gross margin

2) Activity Activity Activity Activity

Activity Cost Driver Capacity Rate

Setup # of production runs

Machine # of machine hrs. #VALUE!

Receiving # of orders

Engineering # of engineering hrs.

Materials handling # of material moves

ABC costing Part #127 Part #234

Overhead costs

Setup

Part #127 runs x

Part #234 runs x

Machine

Part #127 mh x 9.46$

Part #234 mh x 9.46$

Receiving

Part #127 orders x

Part #234 orders x

Engineering

Part #127 eng. hr x

Part #234 eng. hr x

Materials handling

Part #127 min. x

Part #234 min. x

Total cost

Divided by units produced

Overhead cost per unit

Prime cost per unit

Unit cost

Gross profit Part #127 Part #234

Selling price

Less:Unit cost 15.26

Gross margin

Prob 4-32 Name:

Enter the appropriate amounts in the shaded cells in columns E, G, I, and K.

1) Overhead rate = Estimated overhead 6,990,000$ = 25.65$ per DLH

Estimated labor hrs. 272,500

Overhead costs

dlh per unit xRate

Part #127 0.50 25.65 = 12.83$

Gross margin Part #127 Part #234

Selling price 31.86$ 24.00$

Less: unit cost Prime Cost +Overhead

Part #127 8.53 12.83 21.36

2) Activity Activity Activity Activity

Activity Cost Driver Capacity Rate

Setup 240,000$ # of production runs 300 800.00$ per run

Machine 1,750,000 # of machine hrs. 185,000 9.46$ per mach. hr.

ABC costing Part #127 Part #234

Overhead costs

Setup

Part #127 100 runs x 800.00$ 80,000$

Part #234 200 runs x 800.00$ 160,000$

Machine

Part #127 125,000 mh x 9.46$ 1,182,500

Part #234 60,000 mh x 9.46$ 567,600

SOLUTION