XYZ manufactures a line of high-end exercise equipment of commercial quality. Assume that the chief accountant has propo
Posted: Mon May 30, 2022 8:46 am
XYZ manufactures a line of high-end exercise equipment of commercial quality. Assume that the chief accountant has proposed changing from a traditional costing system to an activity-based costing system. The financial vice president is not convinced, so she requests that the next large order for equipment be costed under both systems for purposes of comparison and analysis. An order from Slim-Way Salons, Inc., for 150 low-impact treadmills is received and is identified as the order to be subjected to dual costing. The following cost data relate to the Slim-Way order.Data relevant for both costing system:Direct Materials 55,500Direct labor hours 914Direct labor rate per hour 18In the traditional costing system, the predetermined overhead rate is 0 times of direct labor hours.Compute the overhead cost of the Slim-Way Salons, Inc. order under the trdaditional costing system.(Write your answer as a value only, e.g., 5,000 or 5000)
XYZ manufactures a line of high-end exercise equipment of commercial quality. Assume that the chief accountant has proposed changing from a traditional costing system to an activity-based costing system. The financial vice president is not convinced, so she requests that the next large order for equipment be costed under both systems for purposes of comparison and analysis. An order from Slim-Way Salons, Inc., for 150 low-impact treadmills is received and is identified as the order to be subjected to dual costing. The following cost data relate to the Slim-Way order.
Data relevant for both costing system:
Direct Materials 55,500
Direct labor hours 914
Direct labor rate per hour 18
In the traditional costing system, the predetermined overhead rate is 0 times of direct labor hours.
Compute the overhead cost of the Slim-Way Salons, Inc. order under the trdaditional costing system.(Write your answer as a value only, e.g., 5,000 or 5000)
Compute the overhead cost of the Slim-Way Salons, Inc. order under the trdaditional costing system.
(Write your answer as a value only, e.g., 5,000 or 5000)
Data relevant to the activity-based costing system Cost Drivers Engineering hours Setups Machine hours Activity-Based Overhead Rate $30 per hour $200 per setup $25 per hour $8 per Number of subassemblies subassembly Packaging/shipping hours Machine hours $15 per hour $6 per hour Activity Cost Pools Engineering design Machine setup Machining Assembly Packaging and shipping Building occupancy Expected Use of Cost Drivers for Treadmill Order 3232 1,500 152 732
XYZ manufactures a line of high-end exercise equipment of commercial quality. Assume that the chief accountant has proposed changing from a traditional costing system to an activity-based costing system. The financial vice president is not convinced, so she requests that the next large order for equipment be costed under both systems for purposes of comparison and analysis. An order from Slim-Way Salons, Inc., for 150 low-impact treadmills is received and is identified as the order to be subjected to dual costing. The following cost data relate to the Slim-Way order.
Data relevant for both costing system:
Direct Materials 55,500
Direct labor hours 914
Direct labor rate per hour 18
In the traditional costing system, the predetermined overhead rate is 0 times of direct labor hours.
Compute the overhead cost of the Slim-Way Salons, Inc. order under the trdaditional costing system.(Write your answer as a value only, e.g., 5,000 or 5000)
Compute the overhead cost of the Slim-Way Salons, Inc. order under the trdaditional costing system.
(Write your answer as a value only, e.g., 5,000 or 5000)
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