Product Costing Accuracy Consumption Ratios Activity Rates Activity Costing Tristar Manufacturing Produces Two Types 1 (33.34 KiB) Viewed 34 times
Product Costing Accuracy Consumption Ratios Activity Rates Activity Costing Tristar Manufacturing Produces Two Types 2 (34.53 KiB) Viewed 34 times
Product Costing Accuracy Consumption Ratios Activity Rates Activity Costing Tristar Manufacturing Produces Two Types 3 (24.22 KiB) Viewed 34 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: Machine Hours Receiving Orders Product Infantry Special forces Costs Required: 20,000 Overhead Activity Machining 20,000 $80,000 Setups 300 Infantry 100 $24,000 Consumption Ratios 900 100 $18,000 1. Calculate the total overhead assigned to each product by using only machine hours to calculate a plantwide rate. (Round overhead rate answer to two decimal places and other answers to the nearest dollar.) The overhead rate is $152,000 X per machine hour. The total overhead assigned to the infantry product is $40,000 X 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.) Special forces Packing Orders 1,600 800 $30,000
eBook 2. Calculate consumption ratios for each activity. (Round your answers to two decimal places.) Consumption Ratios Overhead Activity Machining Setups Receiving Packing Feedback Infantry Check My Work Divide the total overhead by the total machine hours for rate per machine hour. Multiply rate by machine hours for infantry and Feedback Special forces 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 Check My Work
4. Assign the overhead costs to each product by using the activity rates computed in Requirement 3. Tristar Manufacturing Overhead Assignment Machining Setups Receiving Packing Total Feedback Infantry Special forces Check My Work Incorrect HW Chs assign 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 this before the actual calculations are made. the infantry product and i the special forces product. The reveal
Join a community of subject matter experts. Register for FREE to view solutions, replies, and use search function. Request answer by replying!