1 answer

Required information Upriver Parts manufactures two products, V-1 and V-2, at its River Plant. Selected data...

Question:

Required information Upriver Parts manufactures two products, V-1 and V-2, at its River Plant. Selected data for an average m

Required information Upriver Parts manufactures two products, V-1 and V-2, at its River Plant. Selected data for an average month for the two products follow. V-1 10,000 $ 2 Units produced Direct materials cost per unit Machine hours per unit Production runs per month V-2 1,000 $ 4 2 40 80 Production at the plant is automated and any labor cost is included in overhead. Data on manufacturing overhead at the plant follow. Machine depreciation Setup labor Material handling Total $51,000 24,000 15,600 $90,600 Required: a. Compute the unit costs for the two products V-1 and V-2 using the current costing system at Upriver (using machine hours as the allocation basis). (Do not round intermediate calculations. Round your answers to 2 decimal places.) b. Compute the unit costs for the two products V-1 and V-2 using the proposed ABC system at Upriver. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Unit Cost V-1 V-2 $ 9.55 $ 19.10 a. b. Using current costing system Using proposed ABC system

Answers

Answer:

1.

V-1 V-2
a. Using current costing system   $     9.55 $    19.1
b.   Using proposed ABC system   $     9.15 $    23.1

a.

Unit cost:
V-1 V-2
Direct Material $          2.00 $            4.00
Overhead (include labor) $          7.55 $          15.1
(7.55*1) (7.55*2)
Unit cost $          9.55 $          19.1

Working :

V-1 V-2 Total
Units produced         10,000         1,000
Machine hour per unit                   1                 2
Total Machine Hours         10,000         2,000       12,000
Total Overheads $   90600
Overheads per unit $90600/12,000 $        7.55 per MH

b.

Unit cost:
V-1 V-2
Direct Material $            2.00 $            4.00
Overhead (include labor) $            7.15 $          19.1
Unit cost $            9.15 $          23.1

Working :

a b a+b=c d d/c=e f=e*a g=e*b
Activity Activity Base V-1 V-2 Total Activity Cost Rate per activity V-1 V-2
Machine Depreciation Total Machine Hours 10000 2000 12000 $      51000 $              4.25 $         42500 $              8500
Set up labor No of Production Runs 80 40 120 $      24000 $          200 $         16000 $              8000
Material Handling Direct Material Cost 20000 4000 24000 $      15600 $              0.65 $         13000 $              2600
$         71500 $            19100
No of Units 10000 1000
Overhead cost per unit $                  7.15 $                   19.1
.

Similar Solved Questions

1 answer
Here is a bivariate data set. x y 44.1 57.5 28.1 30.4 19.3 21.1 19.4 7.6...
Here is a bivariate data set. x y 44.1 57.5 28.1 30.4 19.3 21.1 19.4 7.6 23.9 22.7 23.6 25.6 36.5 43.3 47.5 56 Find the correlation coefficient and report it accurate to three decimal places. r = What proportion of the variation in y can be explained by the variation in th...
1 answer
M v Before After A child with mass m runs with speed v toward a merry...
m v Before After A child with mass m runs with speed v toward a merry go-round that has a moment of inertia I and radius r and jumps onto its rim as shown in the figure above. The merry-go-round is initially at rest. The merry-go-round rotates about its center with no friction. The magnitude of the ...
1 answer
What is the domain of #h = (x+1)sqrt(2x-6)#?
What is the domain of #h = (x+1)sqrt(2x-6)#?...
1 answer
HELP PLS For the following HINMR spectra, what is the most likely compound? singlet triplet triplet...
HELP PLS For the following HINMR spectra, what is the most likely compound? singlet triplet triplet singlet doublet doublet PPM Give the most appropriate major product for the following E1 reaction: CH3OH ?? ? со ауа...
1 answer
What is the derivative of #arctan(cosθ)#?
What is the derivative of #arctan(cosθ)#?...
1 answer
Here is the sample of the Punnett squares. (You may use the back of the page...
here is the sample of the Punnett squares. (You may use the back of the page to write your answer if needed) the laws of inheritance. Here is a fun situation for you to solve: Today you have learned about genetics and Baby mix up at a hospital? had a baby last night in the local hospital. At around ...
1 answer
8. Ductile to brittle transition: observed and a material when temperature is low.
8. Ductile to brittle transition: observed and a material when temperature is low....
1 answer
Simon Company's year-end balance sheets follow. 2018 2017 2016 At December 31 Assets Cash Accounts receivable,...
Simon Company's year-end balance sheets follow. 2018 2017 2016 At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Long-term notes payable secured by mortgages on plant assets Common sto...
1 answer
Assume that MTA Sandwiches sells sandwiches for $3.30 each. The cost of each sandwich follows: Materials...
Assume that MTA Sandwiches sells sandwiches for $3.30 each. The cost of each sandwich follows: Materials Labor Variable overhead Fixed overhead ($17,440 per month, 21,800 units per month) Total cost per sandwich $ 0.90 0.30 0.60 0.80 $2.60 One of MTA's regular customers asked the company to fill...
1 answer
Homework: Section 10.6 Homework Score: 0 of 1 pt 10 of 12 (12 complete) Hw Score:...
Homework: Section 10.6 Homework Score: 0 of 1 pt 10 of 12 (12 complete) Hw Score: 58.33%, 7 of 12 pts 10.6.13 years to accumulate $23,000 pa (Round up to the nearest cent) for Clear All Manual Contacts...
1 answer
Crane Inc. purchased land, building, and equipment from Laguna Corporation for a cash payment of $428,400....
Crane Inc. purchased land, building, and equipment from Laguna Corporation for a cash payment of $428,400. The estimated fair values of the assets are land $81,600, building $299,200, and equipment $108,800. At what amounts should each of the three assets be recorded? (Round intermediate percentage ...
1 answer
Effect of Heat on Diffusion 1) What conclusion might you make concerning the effect of temperature...
Effect of Heat on Diffusion 1) What conclusion might you make concerning the effect of temperature on diffusion time? Diffusion of a liquid in a liquid 1) Does the net movement of molecules slow down as equilibrium is reached? Why/ Why not? 2) Does net diffusion come to an end? Why/ Why not?...
1 answer
The joint probability density function of X and Yis defined by f(, )0 elsewhere What is Pr(X Y K ...
The joint probability density function of X and Yis defined by f(, )0 elsewhere What is Pr(X Y K z,0 1)? The joint probability density function of X and Yis defined by f(, )0 elsewhere What is Pr(X Y K z,0 1)?...
1 answer
1. Sketch a graph of intensity versus position for a set of slits whose width is...
1. Sketch a graph of intensity versus position for a set of slits whose width is 0.0500 mm and whose separation is 0.250 mm. Assume that 2 = 633 nm and that your screen is 65.0 cm from the slits. Pay particular attention to the number of interference maxima visible in the central diffraction maximum...
1 answer
If you add 125 g of C2H6O to your fuel, how many grams of CO2 can...
If you add 125 g of C2H6O to your fuel, how many grams of CO2 can be produced from ethanol?...
1 answer
I need to create a shell script that will remind the employees to fill n their...
I need to create a shell script that will remind the employees to fill n their timecards at the end of each day using variables to define the names of all the employees - I could really use some help!...
1 answer
Sam and Devon agree to go into business together selling college-licensed clothing. According to the agreement,...
Sam and Devon agree to go into business together selling college-licensed clothing. According to the agreement, Sam will contribute inventory valued at $124,000 in return for 80 percent of the stock in the corporation. Sam’s tax basis in the inventory is $74,400. Devon will receive 20 percent ...