Tribute Inc. makes two styles of trophies, basic and deluxe, and operates at capacity. Tribute does large custom orders.

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Tribute Inc Makes Two Styles Of Trophies Basic And Deluxe And Operates At Capacity Tribute Does Large Custom Orders 1 (34.98 KiB) Viewed 40 times

Tribute Inc. makes two styles of trophies, basic and deluxe, and operates at capacity. Tribute does large custom orders. Tribute budgets to produce 10,000 basic trophies and 5,000 deluxe trophies. Manufacturing takes place in two production departments: forming and assembly. In the forming department, indirect manufacturing costs are accumulated in two cost pools, set up and general overhead. In the assembly department, all indirect manufacturing costs are accumulated in one general overhead cost pool. The basic trophies are formed in batches of 200 but because of the more intricate detail of the deluxe trophies, they are formed in batches of 50. 5 Click the icon to view budgeted information.) Read the requirements .. total direct costs. (Don't forget to include direct material and direct manufacturing labor cost in your unit cost calculation.) Start by calculating the total direct costs for the basic and deluxe trophies departments. Basic Deluxe $ 19800 29,000 4.900 Direct materials Forming Assembly Total direct materials Direct manufacturing labor Forming Assembly 33,900 31,400 15,400 46,800 Total direct manufacturing labor $ 80,700 Total direct costs
Requirements 1. Calculate the budgeted unit cost of basic and deluxe trophies based on a single plantwide overhead rate, if total overhead is allocated based on total direct costs. (Don't forget to include direct material and direct manufacturing labor cost in your unit cost calculation.) 2. Calculate the budgeted unit cost of basic and deluxe trophies based on departmental overhead rates, where forming department overhead costs are allocated based on direct manufacturing labor costs of the forming department and assembly department overhead costs are allocated based on total direct manufacturing labor costs of the assembly department. 3. Calculate the budgeted unit cost of basic and deluxe trophies if Tribute allocates overhead costs in each department using activity-based costing, where setup costs are allocated based on number of batches and general overhead costs for each department are allocated based on direct manufacturing labor costs of each department. 4. Explain briefly why plantwide, department, and activity-based costing systems show different costs for the basic and deluxe trophies. Which system would you recommend and why?
- Х Data table The controller has asked you to compare plantwide, department, and activity-based cost allocation. Tribute Budgeted Information for the Year Ended November 30, 2020 Forming Department Basic Deluxe Total Direct materials $ 29,000 $ 22,400 $ 51,400 Direct manufacturing labor 31,400 18,100 49,500 Overhead costs: Set up 15,840 Overhead costs: General overhead 39,600 $ Assembly Department Direct materials Direct manufacturing labor Overhead costs: General overhead Basic 4,900 $ 15,400 Deluxe 7,400 $ 18,600 Total 12,300 34,000 47,600