Problem 05-59 Student Name:
Class:
1
a. The calculation of total budgeted costs for the Manufacturing Department at
Scott Manufacturing is as follows:
Direct Material:
*
Tuff Stuff *
Ruff Stuff *
Total direct Material * *
Direct Labor *
Overhead
Indirect labor *
Fringe benefits *
Indirect material *
Power *
Setup *
Quality assurance *
Other Utilities *
Depreciation *
Total Overhead *
Total Manufacturing budgeted cost. *
Note: Budgeted DL Hours
Tuff Stuff: Tuff Stuff *
Direct material *Ruff Stuff *
Direct labor *Total – *
Overhead *
Tuff Stuff unit cost *DL Rate
Tuff Stuff *
Ruff Stuff: Ruff Stuff *
Direct material *
Direct labor *
Overhead *
Ruff Stuff unit cost *
2. The total budgeted cost of the Fabricating and Assembly Departments,
after separation of costs into the activity cost pools, is calculated as follows:
Total
Percent Dollars Percent Dollars
Direct material * * *
Direct labor * * * * *
Overhead:
Indirect labor * * * * *
Fringe benefits * * * * *
Indirect material * * * *
Power * * *
Setup * * *
Quality assurance * * * * *
Other utilities * * * * *
Depreciation * * * * *
Total Overhead * * *
Total Cost * * *
Fabricating:
Total cost *
Less: Direct material *
Less: Direct labor *
Pool overead cost *
Hours:
3. The unit costs of the products using activity-based costing are calculated as follows:
b. The unit costs of Tuff Stuff and Ruff Stuff, with overhead assigned on the
basis of direct labor hours, are calculated as follows:
Fabricating
Assembly
Tuff Stuff *
Ruff Stuff *
Total Machine hours *
Pool rate per machine hour *
Fabricating cost per unit:
Tuff Stuff *
Ruff Stuff *
Assembly:
Total cost *
Less: Direct labor *
Pool overhead cost *
Setups:
Tuff Stuff *
Ruff Stuff *
Total Setups *
Pool rate per setup *
Setup cost per unit:
Tuff Stuff *
Ruff Stuff *
Tuff Stuff unit cost:
Direct material *
Direct labor *
Fabrication overhead *
Assembly overead *
Tuff Stuff unit cost *
Ruff Stuff unit cost:
Direct material *
Direct labor *
Fabrication overhead *
Assembly overead *
Ruff Stuff unit cost *
4
3. The unit costs of the products using activity-based costing are calculated as follows:
Instructor
McGraw-Hill Irwin
b. The unit costs of Tuff Stuff and Ruff Stuff, with overhead assigned on the
basis of direct labor hours, are calculated as follows:
Fabricating
Assembly