Question

Sheridan Industries has three activity cost pools and two products. It estimates production 2,000 units of...

Sheridan Industries has three activity cost pools and two products. It estimates production 2,000 units of Product BC113 and 1,000 of Product AD908. Having identified its activity cost pools and the cost drivers for each pool, Sheridan accumulated the following data relative to those activity cost pools and cost drivers.

Annual Overhead Data

Estimated Use of
Cost Drivers per Product

Activity Cost Pools

Cost Drivers

Estimated
Overhead

Estimated Use of Cost
Drivers per Activity

Product
BC113

Product
AD908

Machine setup Setups $27,000 45 28 17
Machining Machine hours 109,560 4,980 1,180 3,800
Packing Orders 26,950 490 140 350

Using the above data, do the following:
Prepare a schedule showing the computations of the activity-based overhead rates per cost driver.

Activity Cost
Pools

Estimated
Overhead

Estimated Use of Cost
Drivers per Activity

Activity-Based
Overhead Rates

Machine setup $ setups $ per setup
Machining machine hours $ per machine hr.
Packing orders $ per order
$
Prepare a schedule assigning each activity’s overhead cost to the two products.

BC113

AD908

Activity Cost
Pools

Estimated Use of Cost
Drivers per Product

Activity-Based
Overhead Rates

Cost
Assigned

Estimated Use of Cost
Drivers per Product

Activity-Based
Overhead Rates

Cost
Assigned

Machine setup $ $ $ $
Machining $ $
Packing $ $
Total assigned costs $ $
Compute the overhead cost per unit for each product. (Round answers to 2 decimal places, e.g. 12.25.)

BC113

AD908

Overhead cost per unit $ $

Homework Answers

Answer #1

Req.1

Activity Cost Pools Estimated Overhead( A) Expected Use of Cost Drivers per Activity(B Activity-Based Overhead Rates( A÷B)
Machine setup $27,000 45 setups $600 per setup
Machining $109,560 4980 machine hours $22 per machine hr.
Packing $26,950 490 order $55 Per order

Req.2

Activity Cost Pools Estimated use of Cost driver( a) Activit based overhead rates(b) Cost Assigned(a ×b) Estimated use of Cost driver(c) Activit based overhead rates(d) Cost Assigned(c×d)
Machine setup 28 $600 $16,800 17 $600 $10,200
Machining 1180 $22 $25,960 3800 $22 $83,600
Packing 140 $55 $7700 350 $55 $19,250
Total assigned Costs $50,460 $113,050

Req.3

BC113 AD908
Overhead Cost Per Unit ( a÷ b) $25.23 $113.05
Total Cost ( a) $50,460 $113,050
No of Units ( b) 2000 1000
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Question 9 Flynn Industries has three activity cost pools and two products. It expects to produce...
Question 9 Flynn Industries has three activity cost pools and two products. It expects to produce 3,200 units of Product BC113 and 1,830 of Product AD908. Having identified its activity cost pools and the cost drivers for each pool, Flynn accumulated the following data relative to those activity cost pools and cost drivers. Annual Overhead Data Expected Use of Cost Drivers per Product Activity Cost Pools Cost Drivers Estimated Overhead Expected Use of Cost Drivers per Activity Product BC113 Product...
Weber Industries has three activity cost pools and two products. It estimates the production of 3,000...
Weber Industries has three activity cost pools and two products. It estimates the production of 3,000 units of Product BC113 and 1,400 of Product AD908. Having identified its activity cost pools and the cost drivers for each pool, Weber accumulated the following data relative to those activity cost pools and cost drivers Annual Overhead Data Estimated Use of Cost Drivers per Product Activity Cost Pool Cost Drivers Estimated Overhead Estimated Use of Cost Drivers per Activity Product BC113 Product AD908...
Meester Corporation has an activity-based costing system with three activity cost pools--Machining, Order Filling, and Other....
Meester Corporation has an activity-based costing system with three activity cost pools--Machining, Order Filling, and Other. In the first stage allocations, costs in the two overhead accounts, equipment depreciation and supervisory expense, are allocated to three activity cost pools based on resource consumption. Data used in the first stage allocations follow: Overhead costs: Equipment expense $ 79,800 Supervisory expense $ 4,900 Distribution of Resource Consumption Across Activity Cost Pools: Activity Cost Pools Machining Order Filling Other Equipment expense 0.40 0.30...
Meester Corporation has an activity-based costing system with three activity cost pools--Machining, Order Filling, and Other....
Meester Corporation has an activity-based costing system with three activity cost pools--Machining, Order Filling, and Other. In the first stage allocations, costs in the two overhead accounts, equipment depreciation and supervisory expense, are allocated to three activity cost pools based on resource consumption. Data used in the first stage allocations follow: Overhead costs: Equipment expense $ 84,000 Supervisory expense $ 5,500 Distribution of Resource Consumption Across Activity Cost Pools: Activity Cost Pools Machining Order Filling Other Equipment expense 0.50 0.20...
Meester Corporation has an activity-based costing system with three activity cost pools--Machining, Order Filling, and Other....
Meester Corporation has an activity-based costing system with three activity cost pools--Machining, Order Filling, and Other. In the first stage allocations, costs in the two overhead accounts, equipment depreciation and supervisory expense, are allocated to three activity cost pools based on resource consumption. Data used in the first stage allocations follow: Overhead costs: Equipment depreciation $ 83,100 Supervisory expense $ 2,300 Distribution of Resource Consumption Across Activity Cost Pools: Activity Cost Pools Machining Order Filling Other Equipment depreciation 0.50 0.20...
Activity Rates and Activity-Based Product Costing Hammer Company produces a variety of electronic equipment. One of...
Activity Rates and Activity-Based Product Costing Hammer Company produces a variety of electronic equipment. One of its plants produces two laser printers: the deluxe and the regular. At the beginning of the year, the following data were prepared for this plant: Deluxe Regular Quantity 100,000 800,000 Selling price $900 $750 Unit prime cost $529 $483 In addition, the following information was provided so that overhead costs could be assigned to each product: Activity Name Activity Driver Deluxe Regular Activity Cost...
Meester Corporation has an activity-based costing system with three activity cost pools--Machining, Order Filling, and Other....
Meester Corporation has an activity-based costing system with three activity cost pools--Machining, Order Filling, and Other. In the first stage allocations, costs in the two overhead accounts, equipment depreciation and supervisory expense, are allocated to three activity cost pools based on resource consumption. Data used in the first stage allocations follow: Overhead costs: Equipment depreciation $ 78,000 Supervisory expense $ 2,000 Distribution of Resource Consumption Across Activity Cost Pools: Activity Cost Pools Machining Order Filling Other Equipment depreciation 0.40 0.10...
Howell Corporation's activity-based costing system has three activity cost pools--Machining, Setting Up, and Other. The company's...
Howell Corporation's activity-based costing system has three activity cost pools--Machining, Setting Up, and Other. The company's overhead costs, which consist of equipment depreciation and indirect labor, are allocated to the cost pools in proportion to the activity cost pools' consumption of resources. Equipment depreciation (total) $ 29,400 Indirect labor (total) $ 7,380 Distribution of Resource Consumption Across Activity Cost Pools Machining Setting Up Other Equipment depreciation 0.30 0.20 0.50 Indirect labor 0.50 0.30 0.20 Costs in the Machining cost pool...
Howell Corporation's activity-based costing system has three activity cost pools--Machining, Setting Up, and Other. The company's...
Howell Corporation's activity-based costing system has three activity cost pools--Machining, Setting Up, and Other. The company's overhead costs, which consist of equipment depreciation and indirect labor, are allocated to the cost pools in proportion to the activity cost pools' consumption of resources. Equipment depreciation (total) $ 29,400 Indirect labor (total) $ 7,380 Distribution of Resource Consumption Across Activity Cost Pools Machining Setting Up Other Equipment depreciation 0.30 0.20 0.50 Indirect labor 0.50 0.30 0.20 Costs in the Machining cost pool...
ABC Corporation has an activity based costing system with three activity cost pools- Machining, Setting up,...
ABC Corporation has an activity based costing system with three activity cost pools- Machining, Setting up, and Other. The company's overhead costs have already been allocated to the cost pools and total $5,800 for the machining cost pool, $4,700 for the setting up cost pool, and $7,500 for the other cost pool. Costs in the machining cost pool are assigned to products based on machine-hours and costs in the setting up cost pool are assigned to products based on the...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT