27 Sep Calculate the activity-based overhead rates for these three cost pools
Order Instructions
Complete the following questions using Microsoft Excel. No other submission format is allowed. Review the grading rubric to confirm you are meeting the assignment requirements.
Consider the following information for Hamburg Corporation:
Items
Units
Beginning inventory
85,000
Units started during the year
155,000
Ending inventory
61,000
Inventory is 100% complete as to materials and 60% complete as to conversion.
Items
Materials
Conversion
Beginning costs (SAR)
425,000
686,000
Costs added during the period (SAR)
1,255,000
980,000
Using the WEIGHTED AVERAGE method:
Calculate the number of units completed during the period.
Calculate equivalent units for conversion during the period.
Calculate cost per equivalent units for materials.
Mannheim Corporation manufactures small camping tents and family camping tents. The estimated direct labor time to produce each type of tent is as follows:
Items
Small
Family
Estimated tents produced
24,500
11,000
Direct labor hours per tent
2.5
4.5
Estimated overhead for the period = 1,300,000 SAR.
Compute the overhead cost assigned to each type of tent assuming direct labor hours are used to allocate overhead costs.
The controller is not satisfied with the traditional method of allocating overhead because he believes that most of the overhead costs relate to the family tent product line because of its complexity. He, therefore, developed the following three activity cost pools and related cost drivers to better understand the costs.
Activity Cost Pools
Expected Use of Cost Drivers
Estimated Overhead Costs (SAR)
Setting up machines
1,000 setups
25,000
Assembling
90,000 labor hours
980,000
Inspection
1,200 inspections
230,000
Calculate the activity-based overhead rates for these three cost pools.
Compute the cost that is assigned to each tent using activity-based costing system, given the following information.
Expected Use of Cost Drivers per Product
Items
Small
Family
Number of setups
130
825
Direct labor hours
29,000
55,000
Number of inspections
125
1,125
What do you believe the controller should do and why?
Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Fill in all the assignment paper details that are required in the order form with the standard information being the page count, deadline, academic level and type of paper. It is advisable to have this information at hand so that you can quickly fill in the necessary information needed in the form for the essay writer to be immediately assigned to your writing project. Make payment for the custom essay order to enable us to assign a suitable writer to your order. Payments are made through Paypal on a secured billing page. Finally, sit back and relax.