Maurice Tutor

(5)

$15/per page/Negotiable

About Maurice Tutor

Levels Tought:
Elementary,Middle School,High School,College,University,PHD

Expertise:
Algebra,Applied Sciences See all
Algebra,Applied Sciences,Biology,Calculus,Chemistry,Economics,English,Essay writing,Geography,Geology,Health & Medical,Physics,Science Hide all
Teaching Since: May 2017
Last Sign in: 401 Weeks Ago, 6 Days Ago
Questions Answered: 66690
Tutorials Posted: 66688

Education

  • MCS,PHD
    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

Experience

  • Professor
    Phoniex University
    Oct-2001 - Nov-2016

Category > Accounting Posted 12 Aug 2017 My Price 15.00

Rodent Corporation

Exercise 9-28 Activity-Based versus Traditional Costing (LO 9-4, 5, 6)

Rodent Corporation produces two types of computer mice, wired and wireless. The wired mice are designed as low-cost, reliable input devices. The company only recently began producing the higher-quality wireless model. Since the introduction of the new product, profits have been steadily declining. Management believes that the accounting system is not accurately allocating costs to products, particularly because sales of the new product have been increasing.

Management has asked you to investigate the cost allocation problem. You find that manufacturing overhead is currently assigned to products based on their direct labor costs. For your investigation, you have data from last year. Manufacturing overhead was $1,183,000 based on production of 340,000 wired mice and 84,000 wireless mice. Direct labor and direct materials costs were as follows:

 

  Wired Wireless Total
Direct labor $ 1,043,000   $ 379,000   $ 1,422,000  
Materials   800,000     677,000     1,477,000  

 

Management has determined that overhead costs are caused by three cost drivers. These drivers and their costs for last year are as follows:

 

        Activity Level  
       
 
Cost Driver Costs Assigned Wired Wireless Total
Number of production runs $ 550,000   40 15 55
Quality tests performed   493,000   12 17 29
Shipping orders processed   140,000   100 40 140
 
     
Total overhead $ 1,183,000        
 
     

 

Required:
(a)

How much overhead will be assigned to each product if these three cost drivers are used to allocate overhead? What is the total cost per unit produced for each product? (Round "Total Cost Per Unit" to 2 decimal places.)
   
   

 

(b)

How much overhead will be assigned to each product if direct labor cost is used to allocate overhead?What is the total cost per unit produced for each product? (Do not round intermediate calculations. Round "Overhead" to the nearest whole dollar and "Total Cost Per Unit" to 2 decimal places.)

 

Answers

Maurice Tutor
(5)
Status NEW Posted 12 Aug 2017 03:08 PM My Price 15.00

Hel-----------lo -----------Sir-----------/Ma-----------dam-----------Tha-----------nk -----------You----------- fo-----------r u-----------sin-----------g o-----------ur -----------web-----------sit-----------e a-----------nd -----------and----------- ac-----------qui-----------sit-----------ion----------- of----------- my----------- po-----------ste-----------d s-----------olu-----------tio-----------n.P-----------lea-----------se -----------pin-----------g m-----------e o-----------n c-----------hat----------- I -----------am -----------onl-----------ine----------- or----------- in-----------box----------- me----------- a -----------mes-----------sag-----------e I----------- wi-----------ll

Not Rated(0)
Relevent Questions