Discuss what is the overhead cost per unit for nutty bars

Assignment Help Accounting Basics
Reference no: EM131752594

Health Solutions, Inc. makes two types of health bars and is implementing an ABC system. Previously, all overhead totaling $81,000 had been applied on the basis of machine hours (9,000 total for the period; 5,000 for Nutty Bars and 4,000 for Raisin Bars). The company produces 22,500 units of Nutty Bars and 42,284 units of Raisin Bars. Additional data is as follows:

Cost Driver and

Estimated

   
 

Estimated Level

Overhead

Use of Cost Driver

Use of Cost Driver

Cost Pool

of Activity

Cost

by Nutty Bars

by Raisin Bars

Equipment Setup

100 setups

$20,000

65 setups

35 setups

Materials Ordering

140 orders

$21,000

95 orders

45 orders

Quality Control

200 inspections

$22,000

150 inspections

50 inspections

Mixing

9,000 machine hours

$18,000

5,000 machine hours

4,000 machine hours


What is the overhead cost per unit for Nutty Bars when all overhead is applied based on machine hours using one plantwide rate? (Hint: Start by calculating the predetermined overhead rate per machine hour.)

Reference no: EM131752594

Questions Cloud

Calculate the total accumulated depreciation : An asset purchased on Jan1 for 60000 has an estimated value of 3000.The current useful life is 8 years. How much is total accumulated depreciation.
Identify three limitations of the price-earnings : Identify three limitations of the price-earnings (P/E) multiple valuation approach and suggest one alternative valuation method that reduces or eliminates.
What is the change in operating income : What is the change in operating income if marketing is correct and only the sales price is changed
Semiannual coupon bond with a face value : Assume you have a 9 year, 3.95% semiannual coupon bond with a face value of $1,000. Assume that the bond's yield to maturity was 2.98%
Discuss what is the overhead cost per unit for nutty bars : What is the overhead cost per unit for Nutty Bars when all overhead is applied based on machine hours using one plant wide rate
Review problem of mark-robert and norman : Mark, Robert and Norman (MRN) are considering purchasing the assets of Tin Can Corporation, a company in bankruptcy. The previous owners of Tin Can.
What value would you place on stock : What value would you place on this stock if the WACC is 5% and the cost of equity is 7%?
Designs a new financial instrument : A financial engineer designs a new financial instrument that she calls the PopSnap. This instrument gives the holder access to the following cashflows:
Primary goal is capital gains : If your primary goal is capital gains (or avoiding capital loss!) and you strongly believe that interest rates will not change over the next year.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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