Chrom Company manufactures two models, the XL and RD. It also has two departments, assembly and finishing. Thecompany wants to assign budgeted overhead costs to its two different models to better understand the profitability ofeach model. The Tableau Dashboard provides data for our analysis.Budgeted Overhead Costs by Budgeted Direct Labor Hours &Machine Hours by DepartmentDepartment150,00...3000000125,00. 100000 hours-100,00..Finishing70000Total:75,000...AssemblyAssembly$8,000,00050,000...Assembly25,000...5000000Finishing30000Finishing25090.Direct LaborMachine HoursBudgeted Overhead Costs byActivityCost Driver & Budgeted Usageby Activity2000000SupervisionMaintenance125000 hoursSupervisionTotal:$8,000,000Maintenance100000 hours6000000Note: Total overhead costs by department and total overhead costs by activityare equal. The costs are presented in two different ways here.* + a bleau1. Using data from the upper half of the dashboard, compute the company's single plantwide overhead rate based ondirect labor hours.2. Using data from the upper half of the dashboard, compute the company's single plantwide overhead rate based onmachine hours.1. Plantwide overhead rate based on direct labor hours2. Plantwide overhead rate based on machine hours

Name: Chrom Company manufactures two models, the XL and RD. It also has two
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Description: Chrom Company manufactures two models, the XL and RD. It also has two departments, assembly and finishing. Thecompany wants to assign budgeted overhead costs to its two different models to better understand the profitability ofeach model. The Tablea

The predetermined overhead rate using single plantwide method is calculated as estimated overhead…

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Chrom Company manufactures two models, the XL and RD. It also has two departments, assembly and finish company wants to assign budgeted overhead costs to its two different models to better understand the prof each model. The Tableau Dashboard provides data for our analysis. Budgeted Overhead Costs by Budgeted Direct Labor Hours & Machine Hours by Department Department 150,00... 3000000 125,00.100000 hours- 100,00... Finishing 7000 Total: 75,000... Assembly Assembly

Chrom Company manufactures two models, the XL and RD. It also has two departments, assembly and finish company wants to assign budgeted overhead costs to its two different models to better understand the prof each model. The Tableau Dashboard provides data for our analysis. Budgeted Overhead Costs by Budgeted Direct Labor Hours & Machine Hours by Department Department 150,00... 3000000 125,00.100000 hours- 100,00... Finishing 7000 Total: 75,000... Assembly Assembly

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter5: Product And Service Costing: Job-order System

Section: Chapter Questions

Problem 27P: Firenza Company manufactures specialty tools to customer order. Budgeted overhead for the coming...

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The controller for Muir Companys Salem plant is analyzing overhead in order to determine appropriate drivers for use in flexible budgeting. She decided to concentrate on the past 12 months since that time period was one in which there was little important change in technology, product lines, and so on. Data on overhead costs, number of machine hours, number of setups, and number of purchase orders are in the following table. Required: 1. Calculate an overhead rate based on machine hours using the total overhead cost and total machine hours. (Round the overhead rate to the nearest cent and predicted overhead to the nearest dollar.) Use this rate to predict overhead for each of the 12 months. 2. Run a regression equation using only machine hours as the independent variable. Prepare a flexible budget for overhead for the 12 months using the results of this regression equation. (Round the intercept and x-coefficient to the nearest cent and predicted overhead to the nearest dollar.) Is this flexible budget better than the budget in Requirement 1? Why or why not?
The management of Hartman Company is trying to determine the amount of each of two products to produce over the coming planning period. The following information concerns labor availability, labor utilization, and product profitability: a. Develop a linear programming model of the Hartman Company problem. Solve the model to determine the optimal production quantities of products 1 and 2. b. In computing the profit contribution per unit, management does not deduct labor costs because they are considered fixed for the upcoming planning period. However, suppose that overtime can be scheduled in some of the departments. Which departments would you recommend scheduling for overtime? How much would you be willing to pay per hour of overtime in each department? c. Suppose that 10, 6, and 8 hours of overtime may be scheduled in departments A, B, and C, respectively. The cost per hour of overtime is 18 in department A, 22.50 in department B, and 12 in department C. Formulate a linear programming model that can be used to determine the optimal production quantities if overtime is made available. What are the optimal production quantities, and what is the revised total contribution to profit? How much overtime do you recommend using in each department? What is the increase in the total contribution to profit if overtime is used?
Landon is working on putting together the financials for his company's quarterly report. His company uses standard costs within its absorption costing system, and Landon needs to find the budgeted. cost per unit in order to estimate COGS. Landon has provided the following cost information. 2 3 41 15 16 17 18 Budgeted variable manufacturing cost per unit Budgeted variable operating cost per unit Budgeted fixed overhead costs Budgeted fixed operating costs Budgeted production in units $ D 5.00 3.00 30,000 20,000 5,000 E F G H functions with cell references to the Problem area or work area as indicated. How much cost should be capitalized to inventory for each unit produced? Cost per unit
Chrom Company manufactures two models, the XL and RD. It also has two departments, Assembly and Finishing. The company wants to assign budgeted overhead costs to its two different models to better understand the profitability of each model. The Tableau Dashboard provides data for our analysis. ***My table is wrong, please give me the right answers for it.**
The HeatRadiator Company uses a normal-costing system with a single manufacturing overhead cost pool and machine-hours as the cost-allocation base. The following data are for 2017: Read the requirements2. Requirement 1. Compute the budgeted manufacturing overhead rate for 2017. Begin by selecting the formula you will use. Then, enter the amounts and calculate the rate. Budgeted manufacturing (1) / (2) = overhead rate / = Requirement 2. Compute the under-or overallocated manufacturing overhead of Heat Radiator in 2017. Begin by selecting the formula you will use. Next, enter the amounts in the formula and compute the under-or overallocated manufacturing overhead. (Use parentheses or a minus sign when entering overallocated amounts.) Manufacturing overhead (3) – (4) = under-allocated (overallocated)…
The company is considering using a two-stage cost allocation system and wants to assess the effects on reported product profits. The company is considering using Engineering Hours and Users as the allocation base. Additional information follows. Toot! TiX Total Engineering hours 7,650 5,650 13,300 Users 9,500 17,100 26,600 Engineering – hour related administrative cost $ 114,380 User-related administrative cost $…
Surratt Corp is projecting activity costs associated with producing disk drives, tapes drives, and wire drives. Indirect labor can be traced to five separate activity pools. The budgeted activity cost and activity base data by product are provided below. What is the activity rate for the procurement activity cost pool? Procurement Scheduling Materials handling Product development Production Activity Cost $ 370,000 250,000 500,000 730,000 1.500,000 Activity Base Number of purchase orders Number of production orders Number of moves Number of engineering changes Machine hours Number of Purchase Production Orders Number Number of Machine Engineering Hours Changes Number of Number of of Moves 1.400 Orders Units Disk drives 300 2,000 2,000 4,000 4,000 12,000 10 Tape drives Wire drives. 150 800 10 8,000 4,000 800 4,000 25 10,000 2,500
Company XYZ has 6 standard products from stainless steel and brass. The company’s most popular product is Product XX. The information below shows Product XX’s data for next year’s budget. Using this information a) calculate the budgeted overhead costs using activity-based costing principles b) calculate the budgeted overhead costs using absorption costing (absorb overhead using machine hours) c) how can the company reduce the ABC for Product XX: Customer AAA BBB Component Type A999 B999 Contract Value ($) $27,000 $100,000 Contract Quantity 1,000 unit 2,000 unit Material cost/unit $15 $20 Moulding time/batch 5 hours 7.5 hours Batch size 100 units 50 units Activity Cost Driver Cost Driver Volume/Yr Cost Pool Purchasing Purchase orders 1,500 $75,000 Setting Batches produced 2,800 $112,000 Materials handling Materials movements 8,000 $96,000 Inspection Batches produced 2,800…
Objective: Consider that you are an analyst at Regeneron Pharmaceuticals. You need to decide how to allocate administrative overhead costs to Regeneron's main commercial products (Eylea, Dupixent, Kevzara and Praluent). Determine how to appropriately allocate the costs in the table below to each of the commercial products using an allocation methodology of your choice. Department2019 Annual Operating ExpenseTime spent supporting Commercial productsCommercial$200MM100%IT$100MM25%Facilities$150MM0%Finance$25MM20%Human Resources$75MM10% Use the supporting document Net Product Sales of REGN Products to facilitate your analysis. Provide a written summary of how you allocated the overhead costs to each product in an outline of no more than one page. As a starting point, it's recommended that you revisit the material we covered in Chapter 12. Guidance on calculations:Start off with Net Product Sales of REGN Products. Your objective pertains to 2019 expenses, so you should be reviewing 2019…
A company has two products: A and B. It uses activity-based costing and has prepared the following analysis showing budgeted cost and activity for each of its three activity cost pools: Budgeted Activity Product A Product B Activity Cost Pool Activity 1 Activity 2 Activity 3 Budgeted Cost $106,000 4,900 4,700 $ 81,000 6,400 7,400 $131,000 4,400 7,150 Annual production and sales level of Product A is 36,200 units, and the annual production and sales level of Product B is 71,450 units. What is the approximate overhead cost per unit of Product A under activity-based costing? Multiple Choice $1.41 O $3.91 $11.04 $2.47
A company has two products: A and B. It uses activity-based costing and has prepared the following analysis showing budgeted cost and activity for each of its three activity cost pools: Activity Cost Pool Budgeted Activity Product A Product B Activity 1 Budgeted Cost $ 99,000 $ 74,000 4,200 4,000 Activity 2 5,700 6,700 Activity 3 $117,000 3,700 6,450 Annual production and sales level of Product A is 35,500 units, and the annual production and sales level of Product B is 70,750 units. What is the approximate overhead cost per unit of Product B under activity-based costing? Multiple Choice $3.59 $2.30
A company has two products: A and B. It uses activity-based costing and has prepared the following analysis showing budgeted cost and activity for each of its three activity cost pools: Activity Cost Pool Activity 1 3,000 2,800 Activity 2 4,500 5,500 Activity 3 2,500 5,250 Annual production and sales level of Product A is 34,300 units, and the annual production and sales level of Product B is 69,550 units. What is the approximate overhead cost per unit of Product B under activity-based costing? O $10.28 O $3.00 $2.33 $2.00 O $15.00 Budgeted Activity Budgeted Cost $87,000 $62,000 $93,000 Product A Product B