Return to question a. Determine the total cost and cost per unit for each product...

50.1K

Verified Solution

Question

Accounting

image

image

Return to question 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. 3.33 points (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.) X Answer is not complete. Total Cost Cost per Type of Product Commercial Unit Home $ 6,653,000 $ 369.61X Miniature Combined total Commercial Home Miniature Combined total $ 6,653,000 Prey 1 of 3 Next > Graw Hill WILT U muiliuMdi Costing system LO 5-1, 5-2,5-3 Solomon Electronics produces video games in three market categories: commercial, home, and miniature. Solomon 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 Category Unit Total Pooled Cost $ 619,280 Cost Driver Machine hours Batch 876,700 Types of Costs Indirect labor wages, supplies, factory utilities, machine maintenance Materials handling, inventory storage, labor for setups, packaging, labeling and shipping, scheduling Research and development Rent, general utilities, maintenance, facility depreciation, admin. salaries Number of production orders Product Facility 212,000 507,300 Time spent by research department Square footage Additional data for each of the product lines follow: Total 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 Commercial $ 36.40/unit $ 13.90/hour 6,209 15,000 210 13% 18,000 Home $ 25.00/unit $ 13.90/hour 12,800 45,000 2,100 17% 44,000 Miniature $ 30.50/unit $ 18.10/hour 2,380 12,000 390 70% 17,000 21,300 72,000 2,700 100% 79,000

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