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

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FileName: 0fd23ddc745ea1d46799f4a61596e15c74258532.xls, Tab: Problem P4-1B, Page 1 of 2, 12/28/2011, 19:02:01 Name: Date: Instructor: Course: product, 80,000 units annually. It is a "large barrel", 20-watt, triple-heat appliance designed to appeal to the teenage market segment with its glow-in-the-dark handle. The handheld blow-dryer is Waves Galore's lower-volume product, 40,000 units annually. IT is a three-speed, 2,000 watt appliance with a "cool setting" and a removable filter. It also is designed for the teen market. Both products require 1 hour of direct labor for completion. Therefore, total annual direct labor hours are 120,000 (80,000 + 40,000) Expected annual manufacturing overhead is $441,600 Thus, the predetermined overhead rate is $3.65 per direct labor hour. The direct material cost per unit is $5.25 for the hair curler and $9.75 for the blow-dryer. The direct labor cost is $8.00 per unit for the hair curler and blow-dryer. Activity Cost Pool Cost Driver Expected Use of Drivers by Product Curlers Dryers Purchasing Orders $57,500 500 170 330 Receiving Pounds 42,000 140,000 58,000 82,000 Assembling Parts 166,000 830,000 415,000 415,000 Testing Tests 52,000 130,000 82,000 48,000 Finishing Units 60,000 120,000 80,000 40,000 Packing and shipping Cartons 60,500 12,100 8,040 4,060 $438,000 Instructions: Products Manufacturing Costs Home Model Commercial Model Label Amount Amount Label Amount Amount Label Amount Amount Total unit cost Formula Formula Activity Cost Pool ÷ = Purchasing Amount ÷ Amount Label = Amount Label Receiving Amount ÷ Amount Label = Amount Label Assembling Amount ÷ Amount Label = Amount Label
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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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p4-1b - Name: Date: Instructor: Course: Managerial...

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