Maurice Tutor

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Teaching Since: May 2017
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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 18 Aug 2017 My Price 12.00

Tristar Manufacturing

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:

Product Machine Hours Setups Receiving Orders Packing Orders
Infantry 27,500 300 900 1,600
Special forces 20,000 100 100 1,800
Costs $80,000 $24,000 $22,000 $30,000

Required:

1. Calculate the total overhead assigned to each product by using only machine hours to calculate a plantwide rate. Round your interim rate calculation to two decimal places, if required.

Infantry $
Special forces $

2. Calculate consumption ratios for each activity. Round your answers to two decimal places.

Product Machine Hours Setups Receiving Orders Packing Orders
Infantry        
Special forces        

3. Calculate a rate for each activity by using the associated driver. If required, round your answers to two decimal places.

Machining $ per machine hour
Setups $ per setup
Receiving $ per receiving order
Packing $ per packing order

4. Assign the overhead costs to each product by using the activity rates computed in Requirement 3.

  Infantry Special Forces
Machining $   $  
Setups        
Receiving        
Packing        
Total $   $

 

Answers

Maurice Tutor
(5)
Status NEW Posted 18 Aug 2017 05:08 PM My Price 12.00

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