Beruflich Dokumente
Kultur Dokumente
to products using a
27
overhead rate
own
Chapter 3
CHAPTER HIGHLIGHTS
A.
plantwide overhead rate, ~F>ln~"hnpnb
or activity-based ''''',LIII''
of activity-based
activities into a
batch-level,
activities.
~Qtam",.;cm
of the allocation
cost pool are ""'OdJ<,"yU
to the amount of
each
product requires. This is accomplished by computing
an
overhead rate) for
each
the total cost in
the
cost
might be $150,000 and
1,000 setups. In that case,
the total activity might
the
rate would be $150 per setup and if a
product
two setups, it would be charged $300
for setups.
a.
Unit-level
performed each
shaping a part
machine would be a unit-
D.
the example of
in
Exhibit 3-3. Activity-based costing is just like the
methods for applying overhead to products as de
vu.alJ'C;' 2. The only difference is that activ
uses many overhead cost
and
one. The
overhead
Chapter 3
3. Actual manufacturing overhead costs are ,deb
ited to Manufacturing Overhead as they .are incurred.
xxx
xxx
Manufacturing Overhead
Accounts Payable, Cash, etc.
XXX
xxx
xxx
XXX
xxx
xxx
29
Chapter 3
True or False
iVI1.IIl1,r1W
2. The
is that
resources and
costs.
4. Maintaining
cause
that consume
of resources results in
inventories is a unit-level
Choices
placing the
1.
order is a: a) unit-level
activity; b)
activity; c) product-level
activity; d) facility-level activity.
2. Paying rent on a plant "''''''dalE; is: a) a unit
activity; b) a batch-level
a
level
d) a
3.
the prototype of a new product is:
a unit-level
b) a batch-level activity; c) a
product-level activity; d) a facility-level activity.
4. A company has two activity cost
machine
and production orders. The total cost
in the machine
activity cost pool is $200,000 and
the total cost in
orders cost pool is
$80,000. The estimated activity is 20,000
and
5,000
orders. What is the activity rate for
the machine setup
cost pool? a) $16 per setup;
b)
per
c)
d)
per
5. A
services has an
three activity cost
serv
ing customers, and setting up machines.
activity
rates are $0.02 per photocopy, $2.15 per customer, and
$0.75 per machine-setup. If a customer
set
ups on two different machines and makes
in total, how much cost would be
by the
activity-based costing system for this transaction?
a) $4.00; $2.
d)
c) $1
30
Exercises
3-1.
Activity cost pools tha.t
low_ For cach activity, place an X under
hatch-level, and so forth.
Un it
Level
a.
inventory .......... .
b.
c.
d.
e.
f.
g.
h.
1.
j.
k.
Batch
Level
Activity
31
Product
Level
Activity
are listed be
activity would be
Level
Activity
3
Exercise 3-2.
Company uses
costing to compute unit product costs
company manufactures two products-the Regular Model and the Super Model.
year the company
to produce 20,000 units of
Regular Model and 5,000
of
Other selected data
to the
year are listed below.
the overhead cost per
product
filling in the
data in the schedules provided.
Basic Data
Estimated
Overhead
Costs
$ 80,000
420,000
600,000
Total
10,000
1,400
8,000
45,000
2,000
900
1,600
500
6,400
30,000
Activity Center
(a) -7
Activity
Rate
(b)
$80,000
10,000 DLHs
Machine setups....................
$420,000
1,400 setups
Product
$600,000
8,000 tests
General
$900,000
45,OOOMHs
(a)
Activity
i1fl.nT?'r
The
rates for the various activity cost pools.
cost pools:
Estimated
Overhead Cost
$ 52,900
Batch setups
Material handling
General factory (DLHs) ..................... .
Total manufacturing overhead cost.. .. .
a.
Batch
Estimated
Overhead
Cost
Expected
Activity
$52,900
$100,800
2,800
$65,000
2,500
Activity Rate
Rate
Actual
Activity
Overhead
2,260
2,440
33
Chapter 3
True or False
l. T
Choices
If overhead is
based on direct labor
rather 011 the bases that actually cause the
overheati product costs will be distorted.
2. T
This is the
based
3. T
concept
1. b
2. d
3. c
4. b
5. d
Making
(200
photocopies
@ $0.02) .......... .
machines
(1 customer @
6. F
Exercises
Exercise 3-1.
a.
b.
c.
d.
e.
.
g.
h.
i.
j.
k.
$4.00
1.50
customers
7. F
$10 per
Cost Pool
Manage parts mventorv
Assemble products ................. .
Use factory building ............... .
ProductUnit
Batch-
Level
Level
Level
Activity
Activity
Level
Activity
X
X
X
X
X
X
X
Chapter 3
Exercise 3-2.
Overhelld Rate!> by Activity Center
(a)
Activity Cost Pool
Labor related .... .. .... ..... ....... .
Machine setups ....... ... ... ... .. .
Product testing ........ ......... .. .
General factory ..... .......... ....
Estimated
Overhead Cost
$80,000
$420,000
$600,000
$900,000
(a).;- (b)
Activity Rate
$8.00 per DLH
$300.00 per setup
$75.00 per test
$20.00 per MH
(b)
Expected Activity
10,000 DLHs
1,400 setups
8,000 tests
45,000 MHs
Regular Product
Activity
Amount
8,000
$ 64,000
500
150,000
6,400
480,000
30,000
600,000
$1.294.000
Super Product
Activity
Amount
2,000
$ 16,000
900
270,000
1,600
120,000
15,000
300,000
$lD_6+0_QQ
20,000
5,000
$64.70
$141.20
(b) .................. ..
Exercise 3-3.
a. The first step is to compute the predetermined overhead rate for each activity center:
Estimated
Overhead Cost
Activity Cost Pool
Batch setups .. .. .... .. .... .. ......
$52,900
Material handling .. .... .. .... ..
$100,800
General factory ........ .........
$65,000
Expected
Activity
2,300 setups
2,800 loads
2,500 DLHs
Activity Rate
$23 per setup
$26 perDLH
Activity Rate
$23 per setup
$36 per load
$26 perDLH
A ctual Activity
2,260 setups
2,770 loads
2,440DLHs
35
$2 16,860
215,140
$ 1.12..Q
Overhead
Applied
$ 51 ,980
99,720
63,440
$21 5. 140