Ex 11-10 Name:
Enter the appropriate numbers in the shaded cells in columns D, F, K, and M.
1) Activity Cost / Units Activity Rate
Inspection components / =
Expediting work / =
Reworking products / =
Warranty work / =
Activity Harvey Curtis
Purchase cost: Rate xUnits
Harvey x
Curtis x
Inspecting carburetors:
Harvey x
Curtis x
Expediting work:
Harvey x
Curtis x
Reworking products:
Harvey x
Curtis x
Warranty works:
Harvey x
Curtis x
Total
Divided by units supplied
Unit cost
2) Activity Harvey Curtis
Lost Sales: Rate xUnits
x
x
per inspected order
per expedited order
per rework hour
per warranty hour
Ex 11-10 Name:
Enter the appropriate numbers in the shaded cells in columns D, F, K, and M.
1) Activity Cost / Units Activity Rate
Inspection components 180,000$ / 4,500 = 40$
Activity Harvey Curtis
Purchase cost: Rate xUnits
Harvey 64$ x 40,000 2,560,000$
Curtis 57$ x 120,000 6,840,000$
Expediting work:
Harvey 480$ x 30 14,400
Curtis 480$ x 270 129,600
2) Activity Harvey Curtis
Lost Sales: Rate xUnits
550$ x 300 165,000$
SOLUTION
per inspected order
per rework hour
per warranty hour
per expedited order
Ex 11-14
Enter the appropriate amounts in the shaded cells in columns D, F, I, and K.
1) Overhead rate = Estimated maintenance OH = =
Estimated machine hours
Machine Applied Quantity OH per
Product Hours x OH Rate Overhead Produced Unit
Wheels x = / =
Seats x = / =
Handle Bars x = / =
2) Traceable Quantity OH per
Product OH / Produced Unit
Wheels / =
Seats / =
Handle Bars / =
Name:
Ex 11-14
Enter the appropriate amounts in the shaded cells in columns D, F, I, and K.
Machine Applied Quantity OH per
Product Hours x OH Rate Overhead Produced Unit
Wheels 180,000 x 9.80$ = 1,764,000$ / 157,500 = 11.20$
2) Traceable Quantity OH per
Product OH / Produced Unit
Wheels 1,596,000$ / 157,500 = 10.13$
Name:
SOLUTION
Ex 11-15 Name:
Overhead Control
Cost of Goods Sold
Accounts Receivable
Cost of Goods Sold
Accounts Receivable
Conversion Cost Control
Finished Goods Inventory
Use the pull-down menus is the shaded cells in columns B and C to select the
appropriate account. Enter the appropriate amount in the shaded cells in
columns F and G.
1) 243,000
Accounts Payable 243,000
222,750
Overhead Control 222,750
506,250
Work-In-Process Inventory 506,250
2) 243,000
Accounts Payable 243,000
243,000
Accounts Payable 202,250
Wages Payable 40,500
SOLUTION
Raw Materials and In Process Inventory
Conversion Cost Control
Work-In-Process Inventory
Finished Goods Inventory
Materials Inventory
Work-In-Process Inventory
Work-In-Process Inventory
Overhead Control
Prob 11-32 Name:
Enter the appropriate numbers in the shaded cells in columns E, G, K, and M.
1) Allocation ratios Machining Assembly
Square feet (Square feet in each dept./Total square feet)
Material moves (Moves in each dept./Total moves)
Machine hours (Machine hrs. in each dept./Total Machine hrs.)
Activity Machining Assembly
Direct overhead costs
Building and grounds: Ratio xCosts
Machining x
Assembly x
Material handling:
Machining x
Assembly x
Maintenance:
Machining x
Assembly x
Total
Divided by allocation base
Machining – machine hours
Assembly – direct labor hours
Unit cost
Unit costs Eaters Edgers
Direct materials
Direct labor
Overhead assignment:
Machining: MH xRate
Eaters x
Edgers x
Assembly: DLH xRate
Eaters x
Edgers x
Total unit cost
2) Unit costs – JIT Eaters Edgers
Total cost
Divided by units produced
Cost per unit
4) Decrease in overhead costs
Pre-JIT overhead costs
JIT overhead costs
Decrease in overhead costs
Prob 11-32 Name:
Enter the appropriate numbers in the shaded cells in columns E, G, K, and M.
1) Allocation ratios Machining Assembly
Square feet (Square feet in each dept./Total square feet) 66.7% 33.3%
Material moves (Moves in each dept./Total moves) 60.0% 40.0%
Machine hours (Machine hrs. in each dept./Total Machine hrs.) 80.0% 20.0%
Activity Machining Assembly
Direct overhead costs 280,000$ 175,000$
Building and grounds: Ratio xCosts
Machining 66.7% x150,000 100,000$
Assembly 33.3% x150,000 50,000$
Unit costs Eaters Edgers
Direct materials 12.00$ 45.00$
Direct labor 4.00 30.00
Overhead assignment:
Machining: MH xRate
Eaters 1.00 x 6.53$ 6.53
Edgers 2.00 x 6.53$ 13.06
Assembly: DLH xRate
2) Unit costs – JIT Eaters Edgers
Total cost 425,000$ 2,225,500$
SOLUTION