Q-35PGA-1 Question:聽Oscar, Inc. manufactu... [FREE SOLUTION]

91影视

Chapter 19: Q-35PGA-1 (page 1077)

Question:Oscar, Inc. manufactures bookcases and uses an activity-based costing system. Oscar鈥檚 activity areas and related data follow:
Activity
Budgeted Cost of Activity
Allocation Base
Predetermined Overhead Allocation Rate
Materials handling
$ 240,000
Number of parts
$1.00
Assembly
3,500,000
Number of assembling direct labor hours
17.00
Finishing
190,000
Number of finished units*
4.50
*Refers to number of units receiving the finishing activity, not the number of units transferred to Finished Goods Inventory
Oscar produced two styles of bookcases in October: the standard bookcase and an unfinished bookcase, which has fewer parts and requires no finishing. The totals for quantities, direct materials costs, and other data follow:
Product
Total Units Produced
Total Direct materials Costs
Total Direct Labor Costs
Total Number of Parts
Total Assembling Direct Labor Hours
Standard bookcase
7,000
$91,000
$105,000
28,000
10,500
Unfinished bookcase
7,500
82,500
75,000
22,500
7,500
Requirements
1. Compute the manufacturing product cost per unit of each type of bookcase.

Short Answer

Expert verified

Answer

Manufacturing cost per unit:

For Standard bookcase: $62

For Unfinished bookcase: $40.93

Step by step solution

Computation of manufacturing product cost for standard bookcase

$罢辞迟补濒尘补迟别谤颈补濒丑补苍诲濒颈苍驳肠辞蝉迟=笔谤别诲别迟别谤尘颈苍别诲补濒濒辞肠补迟颈辞苍辞惫别谤丑别补诲谤补迟别脳苍辞.辞蹿辫补谤迟蝉耻蝉别诲蹿辞谤蝉迟补苍诲补谤别诲产辞辞办肠补蝉别 = $ 1 脳 $ 28000 = $ 28, 000 Total assembling cost = Predetermined allocation overhead rate 脳 no . of assembling direct hours for standared book case = $ 17 脳 $ 10, 500 = $ 178, 500 Total fishing cost = Predetermined allocation overhead rate 脳 no . of fished units for standared book case = $ 4.5 脳 $ 7000 = $ 31, 500 Total Overhead cost = Total material cost 脳 Total assembling cost 脳 Total finished cost = $ 28, 000 + 178500 + $ 31, 500 = $ 238, 000 Total manufacturing cost for standared book case = Direct meterial cost + Direct labour cost + Overhead cost = $ 91000 + $ 105, 000 + $ 238, 000 = $ 434, 000 Manufacturing cost per unit = \frac{Total manufacturing cost}{No . 0 f units produced} = \frac{$ 434, 000}{7000} = $ 62$

Computation of manufacturing product cost for unfinished bookcase

$罢辞迟补濒尘补迟别谤颈补濒丑补苍诲濒颈苍驳肠辞蝉迟=笔谤别诲别迟别谤尘颈苍别诲补濒濒辞肠补迟颈辞苍辞惫别谤丑别补诲谤补迟别脳苍辞.辞蹿辫补谤迟蝉耻蝉别诲蹿辞谤耻苍蹿颈苍颈蝉丑别诲产辞辞办肠补蝉别 = $ 1 脳 $ 22000 = $ 22, 000 Total assembling cost = Predetermined allocation overhead rate 脳 no . of assembling direct l a b o u r hours for standared book case = $ 17 脳 $ 7, 500 = $ 178, 500 T o t a l o v e r h e a d \cos t = T o t a l m a t e r i a l \cos t + T o t a l a s s e m b l i n g \cos t = $ 22, 500 + 127, 500 = $ 150, 500 Total manufacturing cost for standared book case = Direct meterial cost + Direct labour cost + Overhead cost = $ 82000 + $ 75, 000 + $ 150, 000 = $ 307, 000 Manufacturing cost per unit = \frac{Total manufacturing cost}{No . 0 f units produced} = \frac{$ 307, 000}{7500} = $ 40.93$

Unlock Step-by-Step Solutions & Ace Your Exams!

Full Textbook Solutions
Get detailed explanations and key concepts
Unlimited Al creation
Al flashcards, explanations, exams and more...
Ads-free access
To over 500 millions flashcards
Money-back guarantee
We refund you if you fail your exam.

Over 30 million students worldwide already upgrade their learning with 91影视!

One App. One Place for Learning.

All the tools & learning materials you need for study success - in one app.

Get started for free

Recommended explanations on Business Studies Textbooks

View all explanations

What do you think about this solution?

We value your feedback to improve our textbook solutions.

91影视

Short Answer

Step by step solution

Computation of manufacturing product cost for standard bookcase

Computation of manufacturing product cost for unfinished bookcase

One App. One Place for Learning.

Most popular questions from this chapter

Recommended explanations on Business Studies Textbooks

Operational Management

Startups

Business Data Analytics

Accounting

Intermediate Accounting

Human 91影视

Study anywhere. Anytime. Across all devices.

Activity	Budgeted Cost of Activity	Allocation Base	Predetermined Overhead Allocation Rate

Materials handling	\( 240,000	Number of parts	\)1.00
Assembly	3,500,000	Number of assembling direct labor hours	17.00
Finishing	190,000	Number of finished units*	4.50

Product	Total Units Produced	Total Direct materials Costs	Total Direct Labor Costs	Total Number of Parts	Total Assembling Direct Labor Hours

Standard bookcase	7,000	\(91,000	\)105,000	28,000	10,500
Unfinished bookcase	7,500	82,500	75,000	22,500	7,500