Companys traditional costing system-pacchiana manufacturing

Assignment Help Database Management System

Reference no: EM13646368

Pacchiana Manufacturing Corporation has a traditional costing system in which it applies manufacturing overhead to its products using a predetermined overhead rate based on direct labor-hours (DLHs). The company has two products, R21V and D00B, about which it has provided the following data:

	R21V	D00B
Direct materials per unit.................	$19.60	$61.70
Direct labor per unit.......................	$3.90	$19.50
Direct labor-hours per unit.............	0.30	1.50
Annual production.........................	45,000	15,000

The company's estimated total manufacturing overhead for the year is $1,262,880 and the company's estimated total direct labor-hours for the year is 36,000.

The company is considering using a variation of activity-based costing to determine its unit product costs for external reports. Data for this proposed activity-based costing system appear below:

	Activities and Activity Measures	Estimated Overhead Cost
	Assembling products (DLHs)....................	$ 108,000
	Preparing batches (batches).......................	362,880
	Product support (product variations).........	792,000
	Total...........................................................	$1,262,880

	Expected Activity
	R21V	D00B	Total
DLHs........................	13,500	22,500	36,000
Batches.....................	1,440	1,152	2,592
Product variations.....	1,404	576	1,980

1. The unit product cost of product R21V under the company's traditional costing system is closest to:

A) $34.02

B) $24.40

C) $41.36

D) $23.50

2. The unit product cost of product D00B under the activity-based costing system is closest to:

A) $111.81

B) $133.82

C) $81.20

D) $30.61

Reference no: EM13646368

Questions Cloud

Determine the total amount of indirect factory wages : Determine the total amount of indirect factory wages and factory equipment depreciation costs that would be allocated to the Product Processing activity cost pool.

Define average speed of an ammonia mole at that temperature : The average speed of a nitrogen molecule at 25 0C is 515 m/s. What is the average speed of an ammonia mole at that temperature

Explain the method and rationale : Explain the method and rationale you used for conducting this type of research.

Find the wheels angular acceleration and displacement : Ed rode a bicycle thatwas pulled by an automobile. In this way Ed rode his bike 200.0 min 6.83 seconds. Find the wheel's angular acceleration and angular displacement for a point on one of the wheels during this ride

Companys traditional costing system-pacchiana manufacturing : Unit product cost of product R21V under the company's traditional costing system - unit product cost of product D00B under the activity-based costing system is closest

Define the maximum number of electrons in an atom : What is the maximum number of electrons in an atom whose highest-energy electrons have the principal quantum number n = 5

Find out the molarity of a solution made : Determine the molarity of a solution made by dissolving 24.8 g of sodium chloride in 750.0 mL of solution

Evaluate the speed of the car just before braking : In coming to a stop, a car leaves skid marks 92m lng on thehighway. Assuming a deceleration of 7.00 m/s^2 estimate the speed of the car just before braking

Explain what patterns about the charges of the ions : What patterns do you notice about the charges of the ions with respect to their positions in the periodic table (or their group number in the periodic table)

User Account

All Pages