Answer:
Using Traditional allocation method
Allocation rate per unit
=<u> Budgeted overhead</u>
Budgeted direct labour hours
Brass
Overhead allocation rate
= <u>$47,500</u>
700 hours
= $67.86 per direct labour hour
Gold
= <u>$47,500</u>
1,200 hours
= $39.58 per direct labour hour
Using activity-based costing
Brass
Allocation rate for material cost pool
= <u>$12,500</u>
400
= $31.25 per material moved
Gold
Allocation rate for material cost pool
= <u>$12,500</u>
100
= $125 per material moved
Brass
Allocation rate for machine set-up pool
= <u>$35,000</u>
400
= $87.50
Gold
Allocation rate for machine set-up pool
= <u>$35,000</u>
600
= $58.33
Explanation:
Using traditional allocation method, the overheads for material cost pool and machine set-up pool will be added. The overhead allocation rate per unit is the division of total overhead by the direct labour hours for each product.
Using activity-based costing, the material cost pool overhead will be divided by the material moved for each product in order to obtain allocation rate for each product.
The allocation rate for machine set-up pool is obtained by dividing the machine set-up overhead by the number of machine set-up for each product.
Answer:
the cost of goods manufactured is $183,000
Explanation:
The computation of the cost of goods manufactured is shown below:
Cost of goods manufactured = Labor cost + direct material purchased + overhead cost - ending balance of material - ending balance of work in process
= $66,000 + $22,000 + $98,000 - $1,000 - $2,000
= $183,000
Hence, the cost of goods manufactured is $183,000
Answer:
The correct answer is $50 (unfavorable).
Explanation:
According to the scenario, computation of the given data are as follow:-
Planning supply activity cost = (592 × $10) +$1230
= $7,150
Actual supply activity cost = (597 × $10) + $1230
= $7,200
We can calculate the activity variance for supply cost by using following formula:-
Activity variance for supplies cost = Actual activity cost – Planning activity cost
= $7,200 - $7,150
= $50 ( positive shows unfavorable)
Answer:
net cash provided is $5,635
Explanation:
Amount ($)
Net Income 4,750
Depreciation 885
Change in inventory (200)
Change in accounts payable <u> 200 </u>
Net cash flows from Operation<u> 5,635</u>
The depreciation is a none cash item that was initially deducted to get the net income, hence it is added back in the cash flows statement.
An increase in inventory represents an outflow of cash hence the negative value. The increase in trade payable is an increase in a liability representing an inflow of cash hence it is positive.
