Products under the traditional costing system

Assignment Help Database Management System

Reference no: EM13646463

Werger 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, W82R and L48S, about which it has provided the following data:

	W82R	L48S
Direct materials per unit................	$11.50	$62.90
Direct labor per unit......................	$2.00	$13.00
Direct labor-hours per unit............	0.20	1.30
Annual production........................	45,000	10,000

The company's estimated total manufacturing overhead for the year is $1,521,960 and the company's estimated total direct labor-hours for the year is 22,000.

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
	Supporting direct labor (DLHs)...........	$ 352,000
	Setting up machines (setups)...............	201,960
	Parts administration (part types)..........	968,000
	Total.....................................................	$1,521,960

Activities	W82R	L48S	Total
Supporting direct labor......	9,000	13,000	22,000
Setting up machines...........	814	374	1,188
Parts administration...........	924	1,012	1,936

Required:

a. Determine the unit product cost of each of the company's two products under the traditional costing system.

b. Determine the unit product cost of each of the company's two products under activity-based costing system.

Reference no: EM13646463

Questions Cloud

State how many moles of boron tribromide are present : How many moles of boron tribromide, BBr_3, are present in a sample that contains 6.02 moles of bromine atoms

Torri manufacturing corporation -determine unit product cost : Determine the unit product cost of each of the company's two products under the traditional costing system

Evaluate the speed of the bucket : A bucket of mass 1.60 kg is whirled ina vertical circle of radius 1.40 m. Atthe lowest point of its motion the tension in the rope supporting the bucket is 25.0 N. Find the speed of the bucket

State what is the mass of gold ring : The two rings are heated to 66.1 C and dropped into a 15.0 mL of water at 20.5 C. When equilibrium is reached, the temperature of the water is 22.5 C. What is the mass of gold ring. (Assume a density of 0.998 g/mL for water.)

Products under the traditional costing system : Determine the unit product cost of each of the company's two products under the traditional costing system

Compute what impulse was delivered by the player : a 0.40kg soccer ball approaches a player horizontally with avelocity of 20m/s to the north. what impulse was delivered by the player

Find the velocity of the object at the end of this interval : A 1.7kg object is at rest. A3N force to the right acts on theobject during a time interval of 1.5s. find the velocity of the object at the end of this interval

Explain the freezing point of a solution with glucose : What is the freezing point of a solution that contains 10.0 g of glucose (C6H12O6) in 100 g of H2O. Kf for water is 1.86oC/m

Compute what is the specific gravity of this other fluid : A bottle has a mass of 35.00 g whenempty and 98.49 g when filled withwater. When filled with another fluid, the mass is 88.70 g. What is the specific gravity of this other fluid

User Account

All Pages