Gudemaranahalli G-Accounting 225-Assign 2-5

Gudemaranahalli G-Accounting 225-Assign 2-5 - Number of...

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Problem 3-15A Part 1.a Predetermined overhead rate = 1,785,000/1,260,000 = 1.42 Part 1.b Model N 800 XL Model N500 Direct Material 75 25 Direct Labor @ 18 54 18 Manufacturing overhead cost 4.26 1.42 unit product cost 133.26 44.42 Part 2.a. Activities Estimated overhead cost Total expected Activity Activity Rate machine set up 360000 300 1200 Special processing 165000 16500 10 General factory 1260000 21000 60 1785000 Part 2.b. Model N 800 XL Model N500 Activities Expected activity Amount Expected Activity Amount machine set up @ 1200 per set up 100 120000 200 240000 special processing @ 10 per MH 16500 165000 0 0 General factory @ 60 DLH 9000 540000 12000 720000 Total overhead cost assigned 825000 960000
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Unformatted text preview: Number of units produced 3000 12000 overhead cost per unit 275 80 Model N 800 XL Model N500 Direct Material 75 25 Direct Labor @ 18 54 18 Manufacturing overhead cost 275 80 unit product cost 404 123 Part 3. When we used only the direct labor-hours as the base for overhead cost, we did not take other parts of the manufacturing overhead into account, like number of setups. In the activity based costing, we used each individual part of the production process to calculate the manufacturing overhead cost. Hence, manufacturing overhead cost shifted under activity-based costing....
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This note was uploaded on 10/10/2010 for the course ACCT 225 S taught by Professor Webster during the Spring '10 term at Franklin.

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