Cost Solutions

Cost Solutions - Cornerstones of Cost Accounting Solutions...

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Cornerstones of Cost Accounting Solutions Chapter 4 Problem 4–24 1. Plantwide rate = $4,500,000/150,000 = $30 per direct labor hour Standard Deluxe Prime costs . ......................................................... $150.00 $350.00 Overhead: $30 × 75,000 hours/30,000 units. ................... 75.00 $30 × 75,000 hours/15,000 units. ................... 150.00 Unit cost . .............................................................. $225.00 $500.00 2. Maintenance (Rate 1) . .................................... $600,000 Maintenance hours . ....................................... ÷ 30,000 Activity rate . ................................................... $20 Engineering support (Rate 2). ....................... $900,000 Engineering hours . ........................................ ÷ 45,000 Activity rate . ................................................... $ 20 Materials handling (Rate 3) . .......................... $1,200,000 Number of moves . ......................................... ÷ 60,000 Activity rate . ................................................... $ 20 Setups (Rate 4). .............................................. $ 750,000 Number of setups . ......................................... ÷ 600 Activity rate . ................................................... $ 1,250 Purchasing (Rate 5) . ...................................... $ 450,000 Number of requisitions . ................................ ÷ 2,250 Activity rate . ................................................... $ 200 Receiving (Rate 6). ......................................... $ 300,000 Number of orders . ......................................... ÷ 7,500 Activity rate . ................................................... $40 Paying suppliers (Rate 7). ............................. $ 300,000 Number of invoices . ...................................... ÷ 7,500 Activity rate . ................................................... $40
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Cornerstones of Cost Accounting Solutions Problem 4–24 (Concluded) Unit cost: Standard Deluxe Prime costs . ......................................................... $ 4,500,000 5,250,000 Overhead: Rate 1: $20 × 6,000. ................................................ 120,000 $20 × 24,000 . .............................................. 480,000 Rate 2: $20 × 13,500 . .............................................. 270,000 $20 × 31,500 . .............................................. 630,000 Rate 3: $20 × 15,000 . .............................................. 300,000 $20 × 45,000 . .............................................. 900,000 Rate 4: $1,250 × 60. ................................................ 75,000 $1,250 × 540 . .............................................. 675,000 Rate 5: $200 × 750. ................................................. 150,000 $200 × 1,500 . .............................................. 300,000 Rate 6: $40 × 3,000. ................................................ 120,000 $40 × 4,500. ................................................ 180,000
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Cost Solutions - Cornerstones of Cost Accounting Solutions...

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