ATG212Chapter3Solutions

# ATG212Chapter3Solutions - Brief Exercise 3-3(30 minutes The...

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Brief Exercise 3-3  (30 minutes) The unit product costs for the products are a combination of direct materials, direct labor, and overhead  costs. The overhead costs assigned to each product would be computed as follows: J78 B52  Expected Activity  Amount Expected Activity Amount Labor related, at \$7.00 per direct labor-hour. ....... 1,000 \$ 7,000 40 \$ 280 Machine related, at \$3.00 per machine-hour. ....... 3,200 9,600 30 90 Machine setups, at \$40.00 per setup. .................. 5 200 1 40 Production orders, at \$160.00 per order. ............. 5 800 1 160 Shipments, at \$120.00 per shipment. ................... 10 1,200 1 120 General factory, at \$4.00 per direct labor-hour. ... 1,000       4,000     40     160     Total overhead cost assigned (a). ........................ \$22,800 \$ 850 Number of units produced (b). ..............................       4,000         100     Overhead cost per unit (a) ÷ (b). .......................... \$          5.70     \$8.50 The unit product costs combine direct materials, direct labor, and overhead costs as follows: J78 B52 Direct materials. .............................................. \$ 6.50 \$31.00 Direct labor. .................................................... 3.75 6.00 Manufacturing overhead (see above). ............       5.70           8.50     Unit product cost. ............................................ \$15.95 \$45.50

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Problem 3-11A  (15 minutes)  Activity Level Possible Activity Measures a. Milling machines are used to  make components for  products. Unit Number of units processed;  Machine-hours b. A percentage of all completed  goods are inspected on a  random basis. Unit

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ATG212Chapter3Solutions - Brief Exercise 3-3(30 minutes The...

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