Maurice Tutor

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    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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    Phoniex University
    Oct-2001 - Nov-2016

Category > Accounting Posted 14 Aug 2017 My Price 12.00

traditional costing system

Dunnstreet produces two types of calculator, standard and deluxe. The company is currently using a traditional costing system with machine hours as the cost driver but is considering a move to activity based costing. In preparing for the possible switch, Dunnstreet has identified two cost pools: materials handling and setup. The collected data follow:

 

  Standard Model Deluxe Model
Number of machine hours 25,000   30,000  
Number of material moves 550   850  
Number of setups 80   500  

 

Total estimated overhead costs are $225,000 of which $70,000 is assigned to the material handling cost pool and $155,000 is assigned to the setup cost pool.

references

6.

E4-14 Requirement 1

 

Requirement 1:

Calculate the overhead assigned to each product using the traditional cost system. Round the overhead rate to four decimal places if necessary.(Do not round intermediate calculations and round your final answer to the nearest whole dollar amount.Omit the "$" sign in your response.)

 

  Overhead assigned
Standard model $
Deluxe model $

eBook Links (5)references

7.

E4-14 Requirement 2

 

Requirement 2:

Calculate the overhead assigned to each product using ABC. Round activity rates to four decimal places if necessary.(Do not round intermediate calculations and round your final answers to 2 decimal places. Omit the "$" sign in your response.)

 

  Overhead assigned
Standard model $
Deluxe model $

eBook Links (5)references

Answers

(5)
Status NEW Posted 14 Aug 2017 02:08 PM My Price 12.00

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