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Uwing traditional product conting as proposed by the tax partners, compute the total overhead cost signed to both services (audit and tax) of Lewis and Stark Total overhead contained Audit Tax Using activity-based costing. Prepare a schedule showing the computations of the actuty-based overhead rates per cost driver), (Round overheart rate to 2 decimal places, s. 12.25) Estimated Activity Cost Poola Expected Use of Overhead Activity-Based Cost Drivers per Activity Overhead Rates Employee training Direct labor doors Der DL dollar Typing and secretaria Reportsform perform Computing Minutes permite Facility rental Employees per employee Travel Direct Direct Precere e che signing och ett overhead cont pour to each service based on the use of the cont drivers (Hound overhead rate to 2 decimal places a 12.25 and contentored to decimals ) Expected UP Cost Drivers Audit Activity-based Overhead Rates Expected Use of Cent Drivers Cost Arned ACTIVITY Oed Overhead Rates Cost Assigned Activy Cost Pool Employee training Typing and secretaria Computing Facility rental Direct Direct Overhead costs assigned
Question 2 of 2 - /20 View Policies Current Attempt in Progress Benton Corporation produces two grades of non-alcoholic wine from grapes that it buys from California growers. It produces and sells roughly 3,000,000 liters per year of a low-cost, high-volume product called CoolDay. It sells this in 600.000 S-liter jups Benton also produces and sells roughly 300.000 liters per year of a low volume, high-cost product called Lite Mist. Lite Mist is sold in 1-liter bottles Based on recent data, the CoolDay product has not been as profitable as LiteMist Management is considering dropping the inexpensive CoolDay line so it can focus more attention on the Lite Mist product. The Lite Mist product already demands considerably more attention than the CoolDay line. Jack Eller, president and founder of Benton, is skeptical about this idea. He points out that for many decades the company produced only the CoolDay line and that it was always quite profitable. It wasn't until the company started producing the more complicated Lite Mist wine that the profitability of CoolDay declined. Prior to the Introduction of Lite Mist, the company had basic equipment, simple growing and production procedures, and virtually no need for quality control. Because Lite Mist is bottled in 1-liter bottles, it requires considerably more time and effort, both to bottle and to label and box than does CoolDay. The company must bottle and handle times as many bottles of Lite Mist to sell the same quantity as CoolDay, CoolDay requires 1 month of apingLite Mist requires 1 year. CoolDay requires cleaning and inspection of equipment every 10.000 liters: LiteMist requires such maintenance every 600 liters Jack has asked the accounting department to prepare an analysis of the cost per liter using the traditional costing approach and using activity-based costing. The following information was collected, CoolDay Lite Mist $0.40 $1.20 $0.50 $0.90 Direct materials per liter Direct labor cost per liter Direct labor hours per liter Total direct labor hours 0.07 0.07 210.000 21.000 Estimated Use of Cost Drivers per Product Estimated Use of Cost Drivers Estimated Overhead Activity Cost Pools Cost Drivers CoolDay Lite Mist Grape processing $146.909 6,600 6,000 600 Aging 745.800 6,600,000 3.000.000 3,600,000 Bottling and corking 288.000 Cart of grapes Total months Number of bottles Number of bottles Number of inspections 900.000 600.000 300,000 Labeling and boxing 200.700 900,000 600.000 300.000 Maintain and inspect equipment 241,600 800 350 450
Direct labor cost per liter $0.50 $0.90 Direct labor hours per liter 0.07 0.07 Total direct labor hours 210.000 21,000 Estimated Use of Cost Drivers per Product Activity Cost Pools Estimated Use of Cost Drivers Estimated Overhead Cost Drivers CoolDay Lite Mist Grape processing Cart of rapes $146.909 6,600 6.000 600 Aging Total months 745,800 6,600,000 3,000,000 3.600,000 Number of bottles 288,000 900.000 600,000 300.000 Bottling and corking Labeling and boxing Maintain and inspect equipment Number of bottles 200,700 900.000 600.000 300,000 Number of inspections 241.600 800 350 450 $1,623,009 Answer each of the following questions (a Under traditional product costing using direct labor hours, compute the total manufacturing cost per liter of both products (Round answers to 3 decimal places, es 12.250.) CoolDay Lite Mist Manufacturing cost per liter $ $ Suve for Later Attempts: 0 of 1 used Submit Answer (b) The parts of this question must be completed in order this part will be available when you complete the part above
Under traditional product costing using direct labor hours, compute the total manufacturing cost per liter of both products. (und answers CoolDay Manutacturing cost per liter LINK TO TEXT Under ABC, prepare a schedule showing the computation of the activity based overhead rates. (Round overhead rates to 3 decimal places Activity Cost Pools Estimated Expected Use Activity-Based Overhead of Cost Drives Overhead Rates Grape processing per cart Aging per month Bottling and corking per bottle Labeling and boxing Maintain and inspect equipment heining at the thread on the India codech 2.0 CoolDay LISSE Age dan din Der Compute the total manufacturing cost per liter for both products under ABC. (Round overhead cost per her to 3 decimal places, eg. 1.223 CoolDay Lite Mist Manufacturing cost per liter LINK TO TEXT LINK TO TEXI Question After
Question 4 of 4 0.67/1 E View Policies Show Attempt History Current Attempt in Progress Windsor Corporation has one temporary difference at the end of 2021 that will reverse and cause taxable amounts of $57 500 in 2022,562.100 in 2023, and $76.600 in 2024. Windsor's pretax financial income for 2021 is $414,600, and the tax rate is 30% for all years. There are no deferred taxes at the beginning of 2021 (a) Your answer is correct Compute taxable income and income taxes payable for 2021 Taxable income $ 218400 Income taxes payable $ 65520 e Textbook and Media List of Accounts Attempts: 1 of 2 used (b) Your Answer Correct Answer Your answer is correct Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2021 Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts) Account Titles and Explanation Debit Credit Income Tax Expert 124380 Deferred taxaby 58560 Income Tax Pwable 65520 3 Evidence LO4, PC...docx Evidence LO2, PC .docx
Your Answer Correct Answer Your answer is correct Prepare the journal entry to record income tax expense, deferred income taxes and income taxes payable for 2021 Condit account titles are automatically Indented when amount is entered. Do not indentmenly Ino entry is required select "No Entry for the account titles and enter for the amounts: Account Tities and Explanation Debit Credit Income Tax Exe 1380 Deferred Tectability 55860 Tecome awes wable 6 e Textbook and Media Solution List of Accounts Attempts: 2 of 2 used c Prepare the income tax expense section of the income statement for 2021, beginning with the line income before income taxes (Enter negative amounts using either a negative sin preceding the numbers 45 or parentheseses (451 Windsor Corporation Income Statement(Partial) Current e Textbook and Media List of Accounts SforLater Last saved 6 seconds Attempts: 0 of 2 used
Question 3 of 4 < 0.7/1 View Policies Show Attempt History Current Attempt in Progress Your answer is partially correct. Cheyenne SA began operations in 2022 and reported pretax financial income of €234,000 for the year. Cheyenne's tax depreciation exceeded its book depreciation by €32,000. Cheyenne's tax rate for 2022 and years thereafter is 30%. Assume this is the only difference between Cheyenne's pretax financial income and taxable income. Prepare the journal entry to record the income tax expense, deferred income taxes, and income taxes payable. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts) Account Titles and Explanation Debit Credit Income Tax Expense 79800 Deferred Tax Liability 9600 Income Taxes Payable 70200 Show how the deferred tax liability will be classihed on the December 31, 2022 statement of financial position Deferred tax liability should be classified as a current liability on the December 31, 2022, statement of financial pos eTextbook and Media List of Accounts Save for Later Attempts: 1 of 2 used Submit Answer