p4-1a - Name: Date: Instructor: Course: Managerial...

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FileName: dfe9109864c8e5d4c2ceb1629569f75c25ddc5ec.xls, Tab: Problem P4-1A, Page 1 of 2, 12/28/2011, 19:01:59 Name: Date: Instructor: Course: and (2) a commercial fire extinguisher. The Home Model is a high-volume, 54,000 half-gallon cylinder that holds 2 1/2 pounds of multipurpose dry chemical at 480 PSI. The Commercial Model is a low-volume, 10,200 units, 2 gallon cylinder that holds 10 pounds of multipurpose dry chemical at 390 PSI. Both products require 1 1/2 hours of direct labor for completion. Therefore, total annual direct labor hours are 96,300 or [1.5 hrs X (54,000 + 10,2000]. Expected annual manufacturing overhead is $1,502,280 Thus, the predetermined overhead rate is $15.60 or ($1,502,280 / 96,300) $18.50 for the home model and $26.50 for the commercial model. The direct labor cost is $19.00 per unit for both the home and commercial models. The company's managers identified six activity cost pools and related cost drivers and accumulated overhead by cost pool as follows. Activity Cost Pool Cost Driver Expected Use of Drivers by Product Home Commercial Receiving Pounds $70,350 335,000 215,000 120,000 Forming Machine hours 150,500 35,000 27,000 8,000 Assembling Number of parts 390,600 217,000 165,000 52,000 Testing Number of tests 51,000 25,500 15,500 10,000 Painting Gallons 52,580 5,258 3,680 1,578 Packing and shipping Pounds 787,250 335,000 215,000 120,000 $1,502,280 Instructions: Products Manufacturing Costs Home Model Commercial Model Label Value Value Label Value Value Label Value Value Label Formula Formula Activity Cost Pool ÷ = Receiving
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This note was uploaded on 12/28/2011 for the course ACCT 221 taught by Professor Leonarda.bacon during the Winter '07 term at CSU Bakersfield.

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p4-1a - Name: Date: Instructor: Course: Managerial...

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