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valina [46]
3 years ago
11

Rusties Company recently implemented an activity-based costing system. At the beginning of the year, management made the followi

ng estimates of cost and activity in the company’s five activity cost pools:
Activity Cost Pool Activity Measure Expected Overhead Cost Expected Activity
Labor-related Direct labor-hours $16,380 1,260 DLHs
Purchase orders Number of orders $1,920 640 orders
Product testing Number of tests $4,275 285 tests
Template etching Number of templates $805 35 templates
General factory Machine-hours $42,600 7,100 MHs

Required:
Compute the activity rate for each of the activity cost pools.
Business
1 answer:
Delicious77 [7]3 years ago
3 0

Answer:

a.  Labor Cost Rate=   13 $ per DLH

b.  Purchase orders Rate= $ 3 per order

c. Product testing Rate =   $ 15 per test

d. Template etching Rate = $ 23 per template

e. General factory Rate=   $ 6 per MHs

Explanation:

Data

Activity            Activity                Expected Overhead       Expected

Cost Pool      Measure                  Cost                              Activity

Labor-related Direct labor-hours $16,380                 1,260 DLHs

Purchase orders Number of orders $1,920                 640 orders

Product testing Number of tests    $4,275                285 tests

Template etching Number of templates $805          35 templates

General factory Machine-hours          $42,600            7,100 MHs

The activity rate can be obtained by dividing the  total cost of each activity with the total cost of the driver allocated to it.

Calculations

Activity Rate = Expected Overhead Cost/ Expected Activity

a.  Labor Cost Rate=   $16,380   /  1,260 DLHs=  13 $ per DLH

b.  Purchase orders Rate=  $1,920/  640 orders= $ 3 per order

c. Product testing Rate =  $4,275 /285 tests= $ 15 per test

d. Template etching Rate = $805 /35 templates= $ 23 per template

e. General factory Rate=  $42,600/ 7,100 MHs= $ 6 per MHs

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Complete Question:

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Resources used for Job 112112​

                                Cutting        Finishing

Direct Labor Hours      6               10

Machine Hours            6                7

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1. How much manufacturing overhead should be allocated to Job 112112​?

2. Assume that direct labor is paid at a rate of $23 per hour and Job 112112 used $2,400 of direct materials. What was the total manufacturing cost of Job 112112​? 1. How much manufacturing overhead should be allocated to Job 112112​? Calculate the total manufacturing overhead for the job by using a formula for each​ department's overhead amount and then adding both amounts together. First determine the formula and overhead for the Cutting Department.

Answer:

Sally's Furniture

1. Manufacturing overhead allocated to Job 112112:

Cutting department = Machine hour rate x machine hours

= $8 x 6 = $48

Finishing department = Direct labor hour  rate x direct labor hours

= $14 x 10 = $140

Total manufacturing overhead = $188 ($48 + 140)

2. Total manufacturing cost of Job 112112:

Direct materials = $2,400

Direct labor        =      368 (16 x $23)

Overhead          =       188

Total cost           = $2,956

Explanation:

a) Data:

Departmental overhead​ rates:

Cutting​ Department: $8 per machine hour

Finishing​ Department: $14 per direct labor hour

b) Job Costing is a costing method that allocates the costs of resources for manufacturing goods and services according to the costs consumed by each job.  Each job becomes a cost center for accumulating costs instead of the process involved in the production.  The system helps management to keep track of the costs of each job.

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Answer:

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Explanation:

<em>A private placement involves the issue of new shares to a few number of individual and institutional investors. Unlike initial public offering, here the shares are not offered to the general public.</em>

The number of units to be issued is determined as follows

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Answer:

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