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EXERCISE 7-4 Second-Stage Allocation [LO7-4] Klumper Corporation is a diversified manufacturer of industrial goods. The company's activity- based costing system contains the following six activity cost pools and activity rates: Activity Rates Activity Cost Pool Supporting direct labor ...... Machine processing .. Machine setups ....... Production orders ..... Shipments ......... Product sustaining $6.00 per direct labor-hour $4.00 per machine-hour $50.00 per setup $90.00 per order $14.00 per shipment $840.00 per product Activity data have been supplied for the following two products: Total Expected Activity K425 M67 200 2,000 500 100 1,500 Number of units produced per year ... Direct labor-hours ... Machine-hours ....... Machine setups .. Production orders .... Shipments.. Product sustaining ...... o Required: Determine the total overhead cost that would be assigned to each of the products listed above in the activity-based costing system.
EXERCISE 7-4 Second-Stage Allocation [LO7-4] Klumper Corporation is a diversified manufacturer of industrial goods. The company's activity- based costing system contains the following six activity cost pools and activity rates: Activity Rates Activity Cost Pool Supporting direct labor ...... Machine processing .. Machine setups ....... Production orders ..... Shipments ......... Product sustaining $6.00 per direct labor-hour $4.00 per machine-hour $50.00 per setup $90.00 per order $14.00 per shipment $840.00 per product Activity data have been supplied for the following two products: Total Expected Activity K425 M67 200 2,000 500 100 1,500 Number of units produced per year ... Direct labor-hours ... Machine-hours ....... Machine setups .. Production orders .... Shipments.. Product sustaining ...... o Required: Determine the total overhead cost that would be assigned to each of the products listed above in the activity-based costing system.
Jamar FerryLv2
3 Aug 2018
Related questions
Klumper Corporation is a diversified manufacturer of industrialgoods. The company's activity-based costing system contains thefollowing six activity cost pools and activity rates: |
| Activity Cost Pool | Activity Rates | |
| Supporting direct labor | $7 | per direct labor-hour |
| Machine processing | $3 | per machine-hour |
| Machine setups | $45 | per setup |
| Production orders | $170 | per order |
| Shipments | $115 | per shipment |
| Product sustaining | $850 | per product |
| Activity data have been supplied for the following twoproducts: |
| Total Expected Activity | ||
| K425 | M67 | |
| Number of units produced per year | 1,400 | 180 |
| Direct labor-hours | 1,125 | 50 |
| Machine-hours | 2,600 | 40 |
| Machine setups | 13 | 1 |
| Production orders | 13 | 1 |
| Shipments | 26 | 1 |
| Product sustaining | 1 | 1 |
| Required: |
Determine the total overhead cost that would be assigned to each ofthe products listed in the activity-based costing system.(Omit the "$" sign in your response.) |
| Activity Cost Pool | K425 | M67 |
| Supporting direct labor | $ | $ |
| Machine processing | ||
| Machine setups | ||
| Production orders | ||
| Shipments | ||
| Product sustaining | ||
| Total overhead cost | $ | $ |
| | ||
| \Larner Corporation is adiversified manufacturer of industrial goods. The company'sactivity-based costing system contains the following six activitycost pools and activity rates: |
| |||||||||||||||||||||||||||||||||
Cost and activity data have been supplied for the followingproducts:
| J78 | B52 | |||
| Directmaterials cost per unit | $ | 4.50 | $ | 26.00 |
| Direct labor costper unit | $ | 5.00 | $ | 6.00 |
| Number of unitsproduced per year | 2,000 | 100 | ||
| Total Expected Activity | |||
| J78 | B52 | ||
| Directlabor-hours | 1,400 | 30 | |
| Machine-hours | 2,400 | 30 | |
| Machine setups | 8 | 1 | |
| Productionorders | 8 | 1 | |
| Shipments | 6 | 1 | |
| Larner Corporation is adiversified manufacturer of industrial goods. The company'sactivity-based costing system contains the following six activitycost pools and activity rates: |
| Activity CostPool | Activity Rates | ||
| Labor-related | $ | 5.00 | per direct labor-hour |
| Machine-related | $ | 6.00 | per machine-hour |
| Machine setups | $ | 40.00 | per setup |
| Productionorders | $ | 100.00 | per order |
| Shipments | $ | 120.00 | per shipment |
| General factory | $ | 6.00 | per direct labor-hour |
| Cost and activity data have beensupplied for the following products: |
| J78 | B52 | |||
| Directmaterials cost per unit | $ | 6.00 | $ | 26.00 |
| Direct labor costper unit | $ | 5.00 | $ | 6.00 |
| Number of unitsproduced per year | 1,000 | 100 | ||
| Total Expected Activity | |||
| J78 | B52 | ||
| Directlabor-hours | 1,300 | 40 | |
| Machine-hours | 2,200 | 30 | |
| Machine setups | 5 | 2 | |
| Productionorders | 7 | 2 | |
| Shipments | 6 | 2 | |
| Required: |
| Compute the unit product cost ofeach product listed above. (Round your answers to 2 decimalplaces.) |
