Cabio Company manufactures two products, Product C and Product D. The company estimated it would incur $188,910 in manuf

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Cabio Company Manufactures Two Products Product C And Product D The Company Estimated It Would Incur 188 910 In Manuf 1 (165.15 KiB) Viewed 8 times

Cabio Company Manufactures Two Products Product C And Product D The Company Estimated It Would Incur 188 910 In Manuf 2 (168.72 KiB) Viewed 8 times

Cabio Company manufactures two products, Product C and Product D. The company estimated it would incur $188,910 in manufacturing overhead costs during the current period. Overhead currently is applied to the products on the basis of direct labor- hours. Data concerning the current period's operations appear below: Estimated volume. Direct labor-hours per unit Direct materials cost per unit Direct labor cost per unit Predetermined overhead rate Unit product cost Required: 8-1. Compute the predetermined overhead rate under the current method. (Round your answer to 2 decimal places.) Activity Cost Pools Machine setups Purchase orders a-2. Determine the unit product cost of each product for the current year (Round your intermediate calculations and final answers to 2 decimal places.) Product C Order size Total per DLH Unit product cost Product D b. The company is considering using an activity-based costing system to compute unit product costs for external financial reports instead of its traditional system based on direct labor-hours. The activity-based costing system would use three activity cost pools. Data relating to these activities for the current period are given below: Product C Product C 4,350 units 2.30 hours Estimated Overhead $ 17.10 $23.00 Costs $ 13,290 78,540 97,080 $ 188,910 Product D Product D 3,550 units 2.40 hours Expected Activity Product C Product D 220 $ 30.30 $24.00 1,040 10,005 230 1,380 8,520 Determine the unit product cost of each product for the current period using the activity-based costing approach. (Round your intermediate calculations and final answers to 2 decimal places.) Total 450 2,420 18,525
Tiehen Corporation uses a job-order costing system to assign manufacturing costs to jobs. At the end of the month it closes out any overapplied or underapplied manufacturing overhead to Cost of Goods Sold. Its balance sheet on April 1 appears below: Assets: Cashi Raw materials Work in process Finished goods Property, plant, and equipment (net). Total assets Liabilities and Stockholders' Equity: Accounts payable Retained earnings Total liabilities and stockholders' equity Summaries of the transactions completed during April appear below: (1) Raw materials purchased on account $ 66,300 (2) Raw materials used in production (direct materials) $50,300 $ 7,150 (3) Raw materials used in production (indirect materials) (4) Direct labor paid in cash $ 95,300 (5) Indirect labor paid in cash $ 25,300 $30,300 (6) Selling and administrative salaries paid in cash (7) Factory utility costs (on account). $ 12,300 (8) Depreciation on PP&E-manufacturing equipment $ 10,300 $ 2,150 $ 15,300 (9) Depreciation on PP&E-selling and administration. (10) Advertising expenses paid in cash (11) Manufacturing overhead applied to production (12) Cost of goods manufactured (13) Cash sales (14) Cost of goods sold Tiehen Corporation Balance Sheet April 1 (15) Cash payments to creditors. (16) Overapplied (underapplied) overhead. Transactions Beginning balances, April 1 (1) Raw materials purchased on account (2) Raw materials used in production (direct materials) (3) Raw materials used in production (indirect materials). (4) Direct labor paid in cash. (5) Indirect labor paid in cash. (6) Selling and administrative salaries paid in cash (7) Factory utility costs (on account) (8) Depreciation on PP&E-manufacturing equipment (9) Depreciation on PP&E-selling and administration (10) Advertising expenses paid in cash. (11) Manufacturing overhead applied to production (12) Cost of goods manufactured (13) Cash sales (14) Cost of goods sold (15) Cash payments to creditors (16) Overapplied (underapplied) overhead Ending balances at April 30 $57,980 $196,300 $275,000 Required: Complete the spreadsheet below. (Negative or Deductible amounts should be entered with a minus sign.). $205,300 $ 81,300 $ 4,300 15,300 19,300 Cashi $ 10,300 38,900 229,300 $278,500 $ 15,150 263,350 $278,500 Raw Work in Finished Manufacturing PP&E Materials Process Goods Overhead (net) Accounts Retained Payable Earnings