Calculate consumption ratios for each activity

Assignment Help Managerial Accounting
Reference no: EM133085618

Question - Timberwolves Manufacturing produces two (2) types of basketballs: adult size and children size. The basketballs are produced by using one continuous process. Four activities have been identified: machining, set-ups, receiving and packing. Resource drivers have been used to assign costs to each activity. The overhead activities, their costs and the other related data are as follows:

Product

Machine Hours

Set-Ups

Receiving Orders

Packing Orders

Adults

10,000

250

800

1,550

Childrens

10,000

150

200

1,200

Costs

$95,000

$26,000

$16,000

$27,000

Required -

1. Calculate the total overhead assigned to each product by using only machine hours to calculate a plant-wide rate.

2. Calculate consumption ratios for each activity.

3. Calculate a rate for each activity by using the associated driver.

4. Assign the overhead costs to each product by using the activity rates computed in requirement c.

5. Comment on the difference between the assignment in requirement a. and the activity-based assignment.

Reference no: EM133085618

Questions Cloud

How would the initial measurement of the lease liability : The fair value of the building on December 31, 2019 is $501,036. How would the initial measurement of the lease liability and right-of-use asset be affected
Bugs everywhere : What happens if metrics are not tracked on bug identification and bug fixes?
Calculate the amount of green work opportunity : Green Corporation hires six individuals on January 4, 2021, all of whom qualify for the work opportunity credit. Calculate the amount of Green work opportunity
Community-based wellness program : The patient was referred to a community-based wellness program for persons with chronic neurological disorders.
Calculate consumption ratios for each activity : Timberwolves Manufacturing produces two (2) types of basketballs: adult size and children size. Calculate consumption ratios for each activity
Change management failures : Change management failures can be traced to many different aspects. What should be done differently?
Functional boundaries to maintain process of change : Does your organization have rewards or incentives for members to work across functional boundaries to maintain the process of change?
Prepare the required journal entries for Telfer Co : On July 9, 2014, Telfer received full payment for the July 1 sale. Prepare the required journal entries for Telfer Co
Determine the discount rate used by the bank : Assuming a 360-day year, proceeds of $40,665 were received from discounting a $41,639, 90-day note at a bank. Determine the discount rate

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Manage budgets and financial plans

Explain the budgeting process and its importance to a business, identifying the components of different budgets, forecast estimates for inclusion in the budgets.

  Prepare a retained earnings statement

Prepare a retained earnings statement for the year and Prepare a stockholders' equity section of given case.

  Prepare a master budget for the three-month period

Prepare a master budget for the three-month period.

  Construct the companys direct labor budget

Construct the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced.

  Evaluate the predetermined overhead rate

Evaluate the Predetermined Overhead Rate

  Determine the company''s bid

Determine the company's bid if activity-based costing is used and the bid is based upon full manufacturing cost plus 30 percent.

  Compute the pool rates for the different activities

Complete the schedule to compute the pool rates for the different activities.

  Prepare Company financial statements

Prepare Company financial statements

  Prepare an analysis of terracycles

This individual assignment is based on the TerraCycle Inc.

  Discuss the ethical issues

Discuss the ethical issues

  Political resources in emerging markets

Calculate the GDP in Income Approach  and Expenditure Approach

  Management accounting - ehsan electronics company

A new plant accountant suggested that the company may be able to assign support costs to products more accurately by using an activity based costing system that relies on a separate rate for each manufacturing activity that causes support costs.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd