Format as Table NAME EXPLORER CLIMBER OTAL COST COST DRIVER TOTALEXPLORERCLIMBER
ID: 2343180 • Letter: F
Question
Format as Table NAME EXPLORER CLIMBER OTAL COST COST DRIVER TOTALEXPLORERCLIMBER Sales price per unit Direct materials per unit Direct labor per unit $615 $115 $75 $390 Machine hours 1 maintenance Batch setups Quality control Technica Total overhead cost $138,364 Setups Number of $51 97 Number of Estimated annual production 4000 units9000 units $484,746 13 14 484,746 Estimated total manufacturing overhead: Estimated total machine hours: 1,000 17 1 Calculate the predetermined overhead rate using traditional volume-based costing 2 Calculate the total amount of overhead that would be assigned to each product line 23 using traditional volume-based costing EXPLORER 3 Calculate the gross margin per unit for each product line using traditional volume-based costing EXPLORER
Explanation / Answer
Req 1. Ohh rate per MH Estimated Overheads 484746 Divide: Estimated MH 1000 OH rate per MH 484.746 Req 2. Explorer Climber Number of MH used 350 650 OH rate per MH 484.746 484.746 Overheads applied 169661 315085 Req 3. Gross profit Explorer Climber Sales 1560000 5535000 Less: Cost Material 368000 1035000 Labour 204000 675000 Overheads 169661 315085 Total c ost 741661 2025085 Gross Profit 818339 3509915 Req 4. Activity Rate STATEMENT SHOWING ACTIVITY RATE OF ACTIVITY POOL Activity Total Expected Activity ACTIVITY COST POOL Measures Overheads Activity Rate machine maintenance MH 78,840 1,000 78.84 Batch Setups Setups 136,364 146 934.00 Quality Control Inspections 163,020 1,650 98.80 Technical support Support calls 106,522 964 110.50 Req 5. Overheads allocated Explorer Climber Activity Rate Activity OH Activity OH machine maintenance 78.84 350 27594 650 51246 Batch Setups 934 60 56040 86 80324 Quality Control 98.8 975 96330 675 66690 Technical support 110.5 352 38896 612 67626 Total Overheads 218860 265886 Req 6. Gross profits: Explorer Climber Sales 1560000 5535000 Less: Cost Material 368000 1035000 Labour 204000 675000 Overheads 218860 265886 Total c ost 790860 1975886 Gross Profit 769140 3559114