Reference no: EM131202646
Wilkins Inc. has two types of handbags: standard and custom. The controller has decided to use a plantwide overhead rate based on direct labor costs. The president has heard of activity-based costing and wants to see how the results would differ if this system were used. Two activity cost pools were developed: machining and machine setup. Pre- sented below is information related to the company’s operations.
Standard custom
Direct labor costs 50,000 100,000
Machine hours 1,000 1,000
Setup hours 100 400
Total estimated overhead costs are $270,000. Overhead cost allocated to the machining ac- tivity cost pool is $170,000, and $100,000 is allocated to the machine setup activity cost pool.
a) Allocate the overhead to the two types of handbags based on direct labor dollars (plantwide approach).
b) Allocate the overhead to the two types of handbags using activity-based costing and the activity pools the company has identified.
c) Do the 2 methods produce the same allocation? Do you have a preference for one of the methods?
|
The periodic weighted-average costing method
: Ronald Company had the following balances and transactions during 2014. Beginning merchandise inventory 10 units at $95 March 10 Sold 8 units June 10 Purchased 20 units at $92 October 30 Sold 15 units What is the amount of the company's Merchandise I..
|
|
Investigate the government regulations
: Identify the company (for instance, US Airways, this is just an example) - Identify the industry your chosen company operates in (for instance, US Airways operates in the Airline Industry, this is just an example).
|
|
How did the perspective you chose view sexuality
: How did reviewing the perspective help with your own understanding of various views of sexuality? Why is it important to understand the various influences on our views of sexuality?
|
|
Determine the mass of water
: Water in a piston-cylinder assembly, initially at a temperature of 99.63°C and a quality of 65%, is heated at constant pressure to a temperature of 200°C
|
|
Two types of handbags-standard and custom
: Wilkins Inc. has two types of handbags: standard and custom. The controller has decided to use a plantwide overhead rate based on direct labor costs. The president has heard of activity-based costing and wants to see how the results would differ if t..
|
|
Depreciation schedule for the equipment using the methods
: Exxonmobil paid $1,600,000 for a Petroleum drilling equipment, which it believes will have $200,000 salvage value at the end of its 5-year life. Compute the depreciation schedule for the equipment using the following methods.
|
|
Determine the thermal efficiency of the combined cycle
: Water enters the pump as a saturated liquid at 0.1 bar. The turbine and pump have isentropic efficiencies of 90 and 100%, respectively. Cooling water enters the condenser at 208C and exits at 358C.
|
|
What is the basis for subject matter jurisdiction
: What must the parties demonstrate to establish personal jurisdiction? Do you think that the U.S. legal system is the best forum for resolving a dispute regarding university admissions policies? Why or why not?
|
|
Estimate the installed cost of a similar system
: The delivered equipment cost for a fixed-bed carbon adsorption system with a capacity of 5000 acfm was $100,000 in 1994. Estimate the installed cost of a similar system with a capacity of 7500 acfm in 2000.
|