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    KUIZ

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    ismail88
    This document provides calculations for three products - Alphas, Betas, and Zebas - using traditional costing and activity-based costing. Under traditional costing, overhead is allocated using a plant-wide machine hours rate of 2.41, resulting in total costs of $1731.83, $1052.8, and $1833.05 respectively. Under activity-based costing, overhead is allocated based on cost drivers for setups, engineering changes, and inspection/packing. This results in different total costs of $1,811, $969.12, and $596.67 respectively when costing out the three products.

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    KUIZ

    Uploaded by

    ismail88
    123 views2 pages
    This document provides calculations for three products - Alphas, Betas, and Zebas - using traditional costing and activity-based costing. Under traditional costing, overhead is allocated using a plant-wide machine hours rate of 2.41, resulting in total costs of $1731.83, $1052.8, and $1833.05 respectively. Under activity-based costing, overhead is allocated based on cost drivers for setups, engineering changes, and inspection/packing. This results in different total costs of $1,811, $969.12, and $596.67 respectively when costing out the three products.

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    This document provides calculations for three products - Alphas, Betas, and Zebas - using traditional costing and activity-based costing. Under traditional costing, overhead is allocated using a plant-wide machine hours rate of 2.41, resulting in total costs of $1731.83, $1052.8, and $1833.05 respectively. Under activity-based costing, overhead is allocated based on cost drivers for setups, engineering changes, and inspection/packing. This results in different total costs of $1,811, $969.12, and $596.67 respectively when costing out the three products.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as doc, pdf, or txt
    123 views2 pages

    KUIZ

    Uploaded by

    ismail88
    This document provides calculations for three products - Alphas, Betas, and Zebas - using traditional costing and activity-based costing. Under traditional costing, overhead is allocated using a plant-wide machine hours rate of 2.41, resulting in total costs of $1731.83, $1052.8, and $1833.05 respectively. Under activity-based costing, overhead is allocated based on cost drivers for setups, engineering changes, and inspection/packing. This results in different total costs of $1,811, $969.12, and $596.67 respectively when costing out the three products.

    Copyright:

    Attribution Non-Commercial (BY-NC)
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    of 2

    KUIZ

    1. Calculate the cost of each product using a plant-wide overhead rate based on
    machine hours.

    Answer :

    Alphas = 1000x63jbl
    = 63,000

    Betas = 3400x80jbl
    = 272,000

    Zebas = 600x105jbl
    = 63,000

    Overhead Rate= 960,000


    398,000
    =2.41

    Item Alphas Betas Zebas


    D.Material 680 300 730
    D.Labor 900 560 850
    MOH 151.83 192.8 253.05
    Total 1731.83 1052.8 1833.05

    2. Calculate the activity cost rates for (1) setups,(2) engineering changes and (3)
    inspection and packing.

    Answer:

    Item O.head dollars Activity Levels Activity Cost


    M.Setups $170,000 34 setups 5000
    E.Changes $320,000 400 E.changes 800
    I.&Packing $470,000 500 units 94
    3. Cost out the three products using an activity-based costing system.

    Answer :

    Item Alphas (1,000) Betas(3,400) Zebas(600)


    D.Materials 680,000 1,020,000 438,000
    D.Labor 900,000 1,904,000 510,000
    MOH
    M.Setups 25,000 45,000 100,000
    E.Changes 112,000 6,400 201,600
    I. & Packing 94,000 319,600 56,400
    Total 1,811,000 3,295,000 358,000

    Kos Seunit : $ 1,811 $ 969.12 $ 596.67

    Tradisional : $ 1731.83 $ 1052.8 $ 1833.05

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