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    Argosy University/ Phoniex University/
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    Phoniex University
    Oct-2001 - Nov-2016

Category > Accounting Posted 17 Aug 2017 My Price 11.00

Sonoma Manufacturing

****SHOW ALL COMPUTATIONS****

Sonoma Manufacturing has five activity cost pools and two products (a budget tape vacuum and a deluxe tape vacuum). Information is presented below:

                                                     Cost Drivers by Product

Activity Cost Pool      Cost Driver   Est. Overhead Budget     Deluxe     

Ordering and Receiving Orders       $   202,500         700         800

Machine Setup           Setups          $350,000         600         400

Machining               Machine hours $1,500,000     150,000     100,000

Assembly                Parts         $1,900,000   1,200,000     800,000

Inspection              Inspections     $400,000         425         475

Instructions

Compute the overhead cost per unit for each product. Production is 650,000 units of Budget and 210,000 units of Deluxe. Round your answer to the nearest cent.

 

****SHOW ALL COMPUTATIONS****

Activity Cost Pool

Cost Driver

Est. Overhead

Cost Drivers by Product

Budget     Deluxe

Overhead Rate

Ordering and Receiving

Orders

   $202,500

      

700

    

800

$135/order

Machine Setup

Setups

$ 350,000

    

600

  

400

$350/setup

Machining

Machine hours

$1,500,000

   

150,000

100,000

$6/machine hour

Assembly

Parts

$1,900,000

   1,200,000

800,000

$0.95/part

Inspection

Inspections

$ 400,000

425

375

$500/inspection

 

Answers

Maurice Tutor
(5)
Status NEW Posted 17 Aug 2017 07:08 PM My Price 11.00

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