Answer Happy

Cabio Company manufactures two products, Product Cand 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.) Product C Activity Cost Pools Machine setups Purchase orders. Order size Total 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.) per DLH Unit product cost Product D Product C 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 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 $ 30.30 $ 24.00 Product C 220 1,040 10,005 Expected Activity Product D 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
In April, Holderness Incorporated, a merchandising company, had sales of $301,000, selling expenses of $22,000, and administrative expenses of $33,000. The cost of merchandise purchased during the month was $171,000. The beginning balance in the merchandise inventory account was $42,000 and the ending balance was $56,000. Required: Prepare a traditional format income statement for April. Holderness Incorporated For the month of April Traditional Format Income Statement Sales Cost of goods sold Gross margin Selling and administrative expenses Selling expense Administrative expense $ 22,000 33,000 $ 301,000 157,000 144,000 $ 55,000 89,000