P4-4A - P4-4A (a) Computation of unit costs—traditional...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: P4-4A (a) Computation of unit costs—traditional costing Overhead cost per direct labor hour is $1,241,660 / (120,000 + 25,000) = $8.563 Products Manufacturing Costs CoolDay $0.400  0.250  0.428 $1.078 Direct materials Direct labor Overhead (b) Activity Cost Pools Grape processing Aging Bottling and corking Labeling and boxing Maintain and inspect   equipment LiteMist $1.200  0.500  0.771 $2.471 Estimated Overhead Expected Use of Cost Drivers Activity-Based Overhead Rate $  145,860    396,000    270,000    189,000     6,600 6,600,000   900,000   900,000 $22.10 per cart $0.06 per month $0.30 per bottle $0.21 per bottle    240,800 $1,241,660       800 $301 per inspection (c) Cool Day Activity Cost Pools Lite Mist Expected ActivityExpected ActivityUse of Based Use of Based Cost Overhead Cost Cost Overhead Cost Drivers x Rates = Assigned Drivers x Rates = Assigned Liters produced $132,600 600   180,000      180,000 3,600,000  126,000   300,000  105,350 300,000 $723,950       450 3,000,000 Overhead cost per   liter    $0.241 Grape processing Aging Bottling and corking Labeling and boxing Maintain and inspect   equipment Total costs assigned     6,000 3,000,000   600,000   600,000 $22.10 $0.06 $0.30 $0.21       350 $301 $22.10 $0.06 $0.30 $0.21 $ 13,260  216,000   90,000   63,000 $301  135,450 $517,710  300,000   $1.726 ...
View Full Document

Ask a homework question - tutors are online