Homework Help is Here – Start Your Trial Now!
Business
Accounting
Traditional Product Costing Versus Activity-Based Costing High Country Outfitters, Inc., makes backpacks for large sporting goods chains that are sold under the customers' s brand names. The accounting department has identified the following overhead costs and cost drivers for next yea Overhead Item Expected Costs Cost Driver Setup costs Ordering costs Maintenance Power Number of setups Number of orders $1,216,800 312,000 1,200,000 Number of machine hours 120,000 Number of kilowatt hours Maximum Quantity 7,200 60,000 80,000 600,000 Total predicted direct labor hours for next year is 60,000. The following data are for two recently completed jobs: Job 201 Job 202 $15,000 $16,500 Cost of direct materials Cost of direct labor $20,625 $72,750 Number of units completed 1,125 915 Number of direct labor hours 270 330 Number of setups 18 22 Number of orders 24 45 Number of machine hours 540 450 Number of kilowatt hours 270 360 a. Determine the unit cost for each job using a traditional company-wide overhead rate based on direct labor hours Round rate to two decimal places. Overhead rate per direct labor hour $0

Traditional Product Costing Versus Activity-Based Costing High Country Outfitters, Inc., makes backpacks for large sporting goods chains that are sold under the customers' s brand names. The accounting department has identified the following overhead costs and cost drivers for next yea Overhead Item Expected Costs Cost Driver Setup costs Ordering costs Maintenance Power Number of setups Number of orders $1,216,800 312,000 1,200,000 Number of machine hours 120,000 Number of kilowatt hours Maximum Quantity 7,200 60,000 80,000 600,000 Total predicted direct labor hours for next year is 60,000. The following data are for two recently completed jobs: Job 201 Job 202 $15,000 $16,500 Cost of direct materials Cost of direct labor $20,625 $72,750 Number of units completed 1,125 915 Number of direct labor hours 270 330 Number of setups 18 22 Number of orders 24 45 Number of machine hours 540 450 Number of kilowatt hours 270 360 a. Determine the unit cost for each job using a traditional company-wide overhead rate based on direct labor hours Round rate to two decimal places. Overhead rate per direct labor hour $0

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter2: Job Order Costing
Section: Chapter Questions
Problem 1MAD: Antolini Enterprises produces mens sports coats that are sold by popular department stores. Each...
See similar textbooks
icon
Related questions
icon
Concept explainers
Topic Video
Question

Can you please answer A and fill in the table; please show me how you got those numbers and any formulas or rules used. I want to be able to understand. 

 

note: use ABC method

Traditional Product Costing Versus Activity-Based Costing High Country Outfitters, Inc., makes backpacks for large sporting goods chains that are sold under the customers' store brand names. The accounting department has identified the following overhead costs and cost drivers for next year: Overhead Item Expected Costs Cost Driver Setup costs $1,216,800 Number of setups Ordering costs 312,000 Number of orders Maintenance 1,200,000 Number of machine hours 120,000 Number of kilowatt hours Power Maximum Quantity 7,200 60,000 80,000 600,000 Total predicted direct labor hours for next year is 60,000. The following data are for two recently completed jobs: Job 201 Job 202 $15,000 $16,500 Cost of direct materials Cost of direct labor $20,625 $72,750 Number of units completed 1,125 915 Number of direct labor hours 270 330 Number of setups 18 22 Number of orders 24 45 Number of machine hours 540 450 Number of kilowatt hours 270 360 a. Determine the unit cost for each job using a traditional company-wide overhead rate based on direct labor hours. Round rate to two decimal places. Overhead rate per direct labor hour $0
Transcribed Image Text:Traditional Product Costing Versus Activity-Based Costing High Country Outfitters, Inc., makes backpacks for large sporting goods chains that are sold under the customers' store brand names. The accounting department has identified the following overhead costs and cost drivers for next year: Overhead Item Expected Costs Cost Driver Setup costs $1,216,800 Number of setups Ordering costs 312,000 Number of orders Maintenance 1,200,000 Number of machine hours 120,000 Number of kilowatt hours Power Maximum Quantity 7,200 60,000 80,000 600,000 Total predicted direct labor hours for next year is 60,000. The following data are for two recently completed jobs: Job 201 Job 202 $15,000 $16,500 Cost of direct materials Cost of direct labor $20,625 $72,750 Number of units completed 1,125 915 Number of direct labor hours 270 330 Number of setups 18 22 Number of orders 24 45 Number of machine hours 540 450 Number of kilowatt hours 270 360 a. Determine the unit cost for each job using a traditional company-wide overhead rate based on direct labor hours. Round rate to two decimal places. Overhead rate per direct labor hour $0
NOTE: Round all answers (except cost per unit) to the nearest whole number, when applicable. Round cost per unit answers to two decimal places. Direct materials Direct labor Overhead Setup cost Ordering costs Maintenance costs Power Total job costs Units produced Cost per unit $ $ $ Job 201 0 0 $ 0 0 0 0 0 $ 0 0 $ Job 202 0 0 0 O 0 0 0 0 0
Transcribed Image Text:NOTE: Round all answers (except cost per unit) to the nearest whole number, when applicable. Round cost per unit answers to two decimal places. Direct materials Direct labor Overhead Setup cost Ordering costs Maintenance costs Power Total job costs Units produced Cost per unit $ $ $ Job 201 0 0 $ 0 0 0 0 0 $ 0 0 $ Job 202 0 0 0 O 0 0 0 0 0
Expert Solution
steps

Step by step

Solved in 4 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Costing Systems
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Managerial Accounting
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Managerial Accounting: The Cornerstone of Busines…
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Cornerstones of Cost Management (Cornerstones Ser…
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Excel Applications for Accounting Principles
Excel Applications for Accounting Principles
Accounting
ISBN:
9781111581565
Author:
Gaylord N. Smith
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Principles of Cost Accounting
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
SEE MORE TEXTBOOKS