Check my work 4 Thornton Electronics produces video games in three market categories: commercial, home,...

90.2K

Verified Solution

Question

Accounting

imageimage

Check my work 4 Thornton Electronics produces video games in three market categories: commercial, home, and miniature. Thornton has traditionally allocated overhead costs to the three products using the companywide allocation base of direct labor hours. The company recently implemented an ABC system when it installed computer-controlled assembly stations that rendered the traditional costing system ineffective. In implementing the ABC system, the company identified the following activity cost pools and cost drivers: 10 points Total Pooled Cost Driver Category Unit Cost Types of Costs $684,000 Indirect labor wages, Bupplies, factory utilities, Machine hours machine maintenance eBook Print References Batch 721,000 Materials handling, inventory storage, labor for Number of production orders setups, packaging, labeling and shipping, scheduling Product 210,300 Research and development 428,400 Rent, general utilities, maintenance, facility Time spent by research department Square footage Facility depreciation, admin. salaries Additional data for each of the product lines follow: Commercial 36.50/unit 13.70/hour 5,000 11,000 Miniature $ 29.60/unit $ 17.50/hour Home Total $ 24.70/unit 13.70/hour Direct materials cost Direct labor cost Number of labor hours Number of machine hours Number of production orders Research and development time Number of units Square footage 12,400 43,000 1,900 ,700 18,000 820 19,100 72,000 3,000 280 13% 21% 66% 100s 10,000 20,000 48,000 53, 000 9,000 11,000 67,000 84,000 Required a. Determine the total cost and cost per unit for each product line, assuming that overhead costs are allocated to each product line using direct labor hours as a companywide allocation base. Also determine the combined cost of all three product lines. b. Determine the total cost and cost per unit for each product line, assuming that an ABC system is used to allocate overhead costs Required a. Determine the total cost and cost per unit for each product line, assuming that overhead costs are allocated to each product line using direct labor hours as a companywide allocation base. Also determine the combined cost of all three product lines. b. Determine the total cost and cost per unit for each product line, assuming that an ABC system is used to allocate overhead costs. Determine the combined cost of all three product lines. For all requirements, round intermediate calculations for allocation rates to 2 decimal places and all other calculations to the nearest whole dollar. Round "Cost per Unit" to 2 decimal places. Round your answers for "Total Cost" to the nearest whole dollar amount.) Type of Product Total Cost Cost per Unit a. Commercial Home Miniature Combined total $ 0 b. Commercial Home Miniature Combined total 0

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students