Lecture 09_24_10 - Managerial Accounting Lecture Problem...

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Click to edit Master subtitle style 2/10/11 Managerial Accounting Lecture September 24, 2010 Problem 3-12
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2/10/11 Problem 3-12 Calculation of predetermined OH rate Estimate OH $1,000,0 00 Estimated based (DLH) # units DL/unit - Mono-relay 40,000 $9 $360,000 - Bi-relay 10,000 $12 $120,000 Total allocation base $480,00 0 Predetermined OH rate 208.33%
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2/10/11 Problem 3-12 Calculation of unit cost based on traditional OH allocation Unit cost Mono- relay Bi-relay - Direct materials $35.00 $48.00 - Direct Labor 9.00 12.00 - Applied overhead 18.75 25.00 Unit product cost $62.75 $85.00
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2/10/11 Activity cost pool Measured by Estimated cost of pool Maintaining parts inventory number of parts $180,000.00 Processing purchase orders number of purchase orders 90,000.00 Quality control number of AC tests 230,000.00 Machine related Machine-hours 500,000.00 Total estimated OH $1,000,000.0 0 Analysis of OH estimate
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2/10/11 Activity cost pool Measured by Mono- relay requires Bi-relay requires Total Maintaining parts inventory number of parts 75 225 300 Processing purchase orders number of purchase orders 800 200 1,000 Quality control number of QC tests 2,500 3,250 5,750 Machine related Machine-hours 4,000 6,000 10,000 Analysis of OH activities by product
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