J25p j40x direct material 1505000 2410000 direct

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J25PJ40XDirect material$1,505,000$2,410,000Direct laborAssembly$755,000$610,000Packaging995,000370,000Total direct labor$1,750,000$980,000Direct costs$3,255,000$3,390,000OverheadAssembly buildingAssembling (@ $30 per mh)$190,000$910,000Setting up machine (@ $900 per setup hour)38,500365,000Handling material (@ $3,000 per run)26,500125,000Packaging buildingInspecting and Packing (@ $5 per direct labor-hour)310,000119,000Shipping (@ $1,320 per shipment)137,000274,000Total ABC overhead$702,000$1,793,000Total ABC cost$3,957,000$5,183,000Number of units105,00042,500Unit cost$37.69$121.95Required:Compute the amount of overhead allocated to the J25P and the J40X cameras for the first quarter usingactivity-based costing. Assume that all events are the same in the first quarter as in the third quarter except forthe number of setup hours. Assume the cost of a setup hour remains at $900.Total ABC OverheadJ25P$690,450J40X$1,683,500
Setting up machine ($26,950 = 0.70 × $38,500; $255,500 = 0.70 × $365,000).4. Doaktown Products manufactures fishing equipment for recreational uses. The Miramichi plant produces thecompany’s two versions of a special reel used for river fishing. The two models are the M-008, a basic reel,and the M-123, a new and improved version. Cost accountants at company headquarters have prepared costsfor the two reels for the most recent period. The plant manager is concerned. The cost report does not coincidewith her intuition about the relative costs of the two models. She has asked you to review the cost accountingand help her prepare a response to headquarters.Manufacturing overhead is currently assigned to products based on their direct labor costs. For the most recentmonth, manufacturing overhead was $287,200. During that time, the company produced 12,200 units of the M-008 and 2,300 units of the M-123. The direct costs of production were as follows:M-008M-123TotalDirect materials$97,600$92,000$189,600Direct labor97,60046,000143,600Management determined that overhead costs are caused by three cost drivers. These drivers and their costs forlast year were as follows:Activity LevelCost DriverCostsM-008 M-123 TotalNumber of machine-hours$113,7008,0002,00010,000Number of production runs80,0001030Number of inspections93,5002530Total overhead$287,200Required:a.How much overhead will be assigned to each product if these three cost drivers are used to allocateoverhead? What is the total cost per unit produced for each product?(Round your intermediate calculationsand final answers to 2 decimal places.)4055

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Term
Spring
Professor
yangxiong

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