Amount of overhead costs assigned to the standard model

Assignment Help Accounting Basics

Reference no: EM132949248

Question

Q. 1 Barnes Corporation manufactures two models of office chairs, a standard and a deluxe model. The following activity and cost information has been compiled:

Number of Product Set-ups Standard 22 Deluxe 28
Overhead costs $30 000

Required:
Number of Components 8 12
$60 000
Number of Direct Labour Hours 500 300

a) Assume a traditional costing system applies the $90 000 of overhead costs based on direct labour hours. What is the total amount of overhead costs assigned to the standard model?

b) Assume a traditional costing system applies the $90 000 of overhead costs based on direct labour hours. What is the total amount of overhead costs assigned to the deluxe model?

Number of set-ups and number of components are identified as activity-cost drivers for overheads.

c) Assuming an activity-based costing system is used, what is the total amount of overhead costs assigned to the standard model?

d) Assuming an activity-based costing system is used, what is the total amount of overhead costs assigned to the deluxe model?

e) Comment on your findings from a) to d)

Reference no: EM132949248

Questions Cloud

Cost assurance for the administrative bookkeepers : Provide and produce a legitimate request of occasions that attempt to clarify the record investigation marvel of cost assurance in administrative bookkeeping

Find how much is the interest earned : If money earns an annual rate of 6.5% compounded annually, how much would be available at the end of the time period. How much is the interest earned?

Determine the monthly payment : Determine the monthly payment. What is the outstanding balance of the loan after 1 year (12 payments) assuming all payments were made on schedule

What is the operating cash flow : A project will generate sales of $59,559 each. The variable costs are $11,071 and the fixed costs are $12,752. What is the operating cash flow

Amount of overhead costs assigned to the standard model : What is the total amount of overhead costs assigned to the deluxe model and what is the total amount of overhead costs assigned to the standard model

Prepare a statement of financial position for viviane : At the end of December 31, 2020, the fair market value of the Trading Securities amount. Prepare a Statement of Financial Position

What is the par value per share of common stock : The information on the following page was obtained from the records of Breanna Inc.: What is the par value per share of common stock

Compute the book value per share for the preference share : Compute the book value per share for the Preference share assuming dividends are in arrears for 3 years including the current year.

How many shares of ordinary share capital were issued : How many shares of Ordinary share capital were issued at the conversion date? Is there an indicated gain or an indicated loss?

User Account

All Pages