Solution-Calculate the manufacturing overhead cost for each

Calculate the manufacturing overhead cost for each product

Assignment Help Accounting Basics

Reference no: EM132504692

Question - Glass Mountain Vases is reviewing two vase product lines, Tall & Short. For these two products they allocate the costs using one single overhead rate based on estimated machine hours. GMV doesn't believe the tall & short vases are being costed accurately and therefore decides to investigate switching to an Activity Based Costing System. The controller performs significant analysis and determines the following costs activities and cost drivers:

Activity	Activity Driver	Estimated Activity Cost	Volume of Activity Measure
Purchasing	Quantity bought (kg)	$225,00	100,000 kg
Machine setups	Number of setups	450,000	200 setups
Oven Firing	Oven hours	600,000	25,000 hours

The following data is used for GMV for November:

	Short	Tall
Purchasing Materials	2,000 kg	4,000 kg
Machine setups	22 setups	5 setups
Oven Firing	1,000 hours	1,000 hours

1. Calculate the budgeted indirect cost rate for the three cost pools.

2. Calculate the manufacturing overhead cost for each product.

3. Assuming the following additional costs, what is the total cost of the two products?

	Short	Tall
Direct Maters	$50	$65
Direct Labour	$75	$33

Reference no: EM132504692

Questions Cloud

Determine total net income if all products are sold : Joint processing costs for a year amount to $200,000. Determine total net income if all products are sold at split off point

What is the amount and character recognized by Wilma : Wilma's income tax basis in each share is $7,900. What is the amount and character recognized by Wilma as a result of the stock redemption

How many shares of Acme is Shirley deemed : Joan and Bill are married, and they each own 55 shares of Acme. How many shares of Acme is Shirley deemed to own under the stock attribution rules

Prepare flexible selling and administrative expenses budget : Prepare a flexible selling and administrative expenses budget for June 2016 for sales volume $400,000, $500,000 and $600,000

Calculate the manufacturing overhead cost for each product : Calculate the budgeted indirect cost rate for the three cost pools. Assuming the following additional costs, what is the total cost of the two products

Compute the equivalent units of production for the month : Units transferred to quality control department 90,000. Using FIFO method, compute the equivalent units of production for the month with to respect to materials

What was gross profit : Let's suppose you (USA dealer) imported a product from German on Dec 1, 2018 at € 300, What was gross profit for 2018 and 2019, respectively

What was profit or loss from these transactions : You sold the product in the US market at $400 in cash on Dec 15, 2018. What was profit or loss from these transactions (in 2018 and 2019 combined)

Prepare journal entries on the books of producers limited : Construction materials on hand in opening inventory used $23,000. Prepare journal entries on the books of Producers Limited to record these transactions

User Account

All Pages

Calculate the manufacturing overhead cost for each product

Reference no: EM132504692

Reference no: EM132504692

Questions Cloud

Reviews

Write a Review

Accounting Basics Questions & Answers

How much control does fed have over this longer real rate

Coures:- fundamental accounting principles

Accounting problems

Theory of interest - term structure of interest rates

Write a report on internal controls

Prepare the bank reconciliation for company

Cost-benefit analysis

Theory of interest

Liquidity and profitability

What is the expected risk premium on the portfolio

Simple interest and compound interest

Capm and venture capital

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT