70.2K

Verified Solution

Link Copied!

Activity-based costing: factory overhead costs

Instructions

Activity Table - Jeans

Activity Table - Khakis

Instructions

The total factory overhead for Diva-nation is budgeted for the year at $165,788, divided into four activities: cutting, $18,553; sewing, $31,840; setup, $86,190; and inspection, $29,205. Diva-nation manufactures two types of mens pants: jeans and khakis. The activity-base usage quantities for each product by each activity are as follows:

	Cutting	Sewing	Setup	Inspection
Jeans	830 dlh	1,200 dlh	1,175 setups	2,995 inspections
Khakis	1,220	790	1,035	1,955
	2,050 dlh	1,990 dlh	2,210 setups	4,950 inspections

Each product is budgeted for 15,000 units of production for the year.

	Required:
	Complete the Activity Tables for jeans and khakis. A. Determine the activity rates for each activity. Enter these rates in the Activity Rate columns.* B. Use the activity rates in (A) to determine the activity-based factory overhead per unit for each product.*
	* When required, round all per-unit and activity rate answers to the nearest cent.

Activity Table - Jeans

	Complete the Activity Table for Jeans. A. Determine the activity rates for each activity. Enter these rates in the Activity Rate columns. B. Use the activity rates in (A) to determine the activity-based factory overhead per unit for each product.
	* When required, round all per-unit and activity rate answers to the nearest cent.

	Jeans
Activity	Activity-
	Base		Activity		Activity
	Usage	X	Rate	=	Cost
Cuttting
Sewing
Setup
Inspections
Total
Budgeted items
Factory overhead per unit

Activity Table - Khakis

	Complete the Activity Table for khakis. A. Determine the activity rates for each activity. Enter these rates in the Activity Rate columns. B. Use the activity rates in (A) to determine the activity-based factory overhead per unit for each product.
	* When required, round all per-unit and activity rate answers to the nearest cent.

	Khakis
Activity	Activity-
	Base		Activity		Activity
	Usage	X	Rate	=	Cost
Cuttting
Sewing
Setup
Inspections
Total
Budgeted items
Factory overhead per unit

Answer & Explanation Solved by verified expert

See Answer