Reference no: EM132945354

Problem 1 - Snow Products Corporation makes two products, titanium Rims and Posts. Additional information about the company follows: a. Rims require $17 in direct materials per unit, and Posts require $10. b. The direct labor wage rate is $16 per hour. Following are the data regarding the two products and ABC costing: Data Regarding the two product follows Direct Labor-hour per unit Annual Production Rims 0.5 20,000 Posts 0.3 80,000 Activity Cost pool: Activity Activity cost pool (and activity measure) Estimated Overhead costs Rims Posts Total Machine setups (number of setups) 20,000 70 90 160 Special Processing (machine hours) 200,000 3,000 1,000 4,000 General factory (direct labor hours) 300,000 10,000 24,000 34,000 Required: Determine the total cost of Posts according to the ABC system. Show details of your working.

Problem 2 - Tyrion Company has the following budgeted production for the 2nd quarter ending in June 30. April May June Quarter Budgeted Production 50,000 60,000 70,000 180,000 Each unit requires 5 pounds of raw material that costs $4.00 per pound. Management desires to end each month with an inventory of raw materials equal to 25% of the following month's production needs. The beginning raw materials inventory for April is budgeted to be 55,000 pounds and desired ending inventory for June is budgeted to be 95,000 pounds. Management plans to pay for 70% of raw material purchases in the month acquired and 30% in the following month. In addition, the beginning accounts payable for April is budgeted to be $40,820. Required: a. Prepare the company's direct materials budget and schedule of expected cash disbursements for purchases of materials for the 2nd quarter ending in June. b. If the actual cost of material purchased is $4.5 per pound and 4 pounds of raw materials were purchased to manufacture each unit of product. Compute the materials quantity variance for one unit of product from the budgeted standard.