Product-Costing Accuracy, Consumption Ratios, Activity Rates, Activity Costing Tristar Manufacturing produces two types

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Product Costing Accuracy Consumption Ratios Activity Rates Activity Costing Tristar Manufacturing Produces Two Types 1 (102.05 KiB) Viewed 64 times

Product-Costing Accuracy, Consumption Ratios, Activity Rates, Activity Costing Tristar Manufacturing produces two types of battery-operated toy soldiers: infantry and special forces. The soldiers are produced by using one continuous process. Four activities have been identified: machining, setups, receiving, and packing. Resource drivers have been used to assign costs to each activity. The overhead activities, their costs, and the other related data are as follows: Product Machine Hours Setups Receiving Orders Packing Orders Infantry 20,000 300 900 1,600 Special forces 20,000 100 100 800 Costs $80,000 $24,000 $18,000 $30,000 Required: head rate answer to two decimal places and 1. Calculate the total overhead assigned to each product by using only machine hours to calculate a plantwide rate. (Round other answers to the nearest dollar.) The overhead rate is $ 3.8 per machine hour. The total overhead assigned to the infantry product is $ 40,000 The total overhead assigned to the Special Forces product is $ 76,000 2. Calculate consumption ratios for each activity. (Round your answers to two decimal places.) Consumption Ratios Overhead Activity Infantry Special forces Machining Setups Receiving Packing
3. Calculate a rate for each activity by using the associated driver. Machining: per machine hour Setups: $ per setup Receiving: per receiving order Packing: per packing order 4. Assign the overhead costs to each product by using the activity rates computed in Requirement 3. Tristar Manufacturing Overhead Assignment Infantry Special forces Machining $ $ Setups Receiving Packing Total 5. CONCEPTUAL CONNECTION: Complete the statements below on the difference between the assignment calculated in Requirement 1 and the activity-based assignment. Using only machine hours the infantry product and the special forces product. The reveal this before the actual calculations are made.