See the attached file.
Snappy Company, estimated the following for 2009:
Manufacturing Overhead $100,000
Direct Labor hours 40,000
At year end (12/31/2009), actual DLH = 45,000
And actual overhead costs were $110,250.
A. Compute the overhead application rate for 2009.
B. Computer the over/under applied over head for 2009. Indicate if the amount is
Over or under applied.
C. If Job #334 required $5,000 of direct materials and 400 DLH at a cost
Of $6/hour, compute the total cost for Job #67.
D. If Job #334 consisted of 200 units, what is the cost per unit?
Question #3: Activity-Based Costing
Anfuso Corporation uses activity-based costing to determine product costs for external financial reports. The company has provided the following data concerning its activity-based costing system. Calculate the per unit cost for Products X and Y.
Activity Cost Pools (and Activity Measures) Estimated Overhead Cost
Machine related (machine-hours) $159,500
Batch setup (setups) $269,000
General factory (direct labor-hours) $166,500
Activity Cost Pools Total Product X Product Y
Machine related 11,000 8,000 3,000
Batch setup 10,000 6,000 4,000
General factory 9,000 5,000 4,000
1. Calculation of Activity Rates:
(A) (B) (A/B)
Activity Estimated Expected Activity
Cost Pool Overhead Cost Activity Rate
2. Calculation of unit product costs:
Product X Product Y
Activity Activity Expected Expected
Cost Pool Rate Activity Amount Activity Amount
Number of units 15,000 2,000
Overhead costs per unit:
Total Unit Cost:
Prod. X Prod. Y
Direct materials $30 $75
Direct labor: 25 35
Question 4:Wacky Company showed the following information for August:
Units Materials Conversion
Work in process, beginning 800 75% 50%
Started into production 15,000
Completed and transferred out 13,800
Work in process, ending 2,000 80% 40%
Work in process, beginning $4,640 $ 2,540
Cost added during August $97,000 $ 215,000
Prepare a production report for Wacky for August.
1. Quantity Schedule and Equivalent Units
Units to be accounted for: Qty. Sch.
Started in production
Units accounted for as follows: Materials Costs
Total units and equivalent units
2. Cost per Equivalent Unit Total Conversion Whole
Cost Materials Costs Unit
Cost to be accounted for:
Costs added during the month
Equivalent units of production:
Cost per Equivalent Unit
3. Cost Reconciliation Equivalent units
Costs accounted for as follows: Cost Materials Costs
The solution explains three questions relating to job order costing, activity based costing and process costing