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ss7ja [257]
2 years ago
6

Horgen Corporation manufactures two products: Product M68B and Product H27T. The company is considering implementing an activity

-based costing (ABC) system that allocates its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products M68B and H27T.
Activity Cost Pool Activity Measure Total Cost Total Activity
Machining Machine-hours $299,000 13,000 MHs
Machine setups Number of setups $240,000 400 setups
Product design Number of products $80,000 2 products
Order size Direct labor-hours $290,000 10,000 DLHs


Activity Measure Product Product
Machine-hours M68B H27T
Number of setups 6,000 7,000
Number of products 250 150
Direct labor-hours 4,000 6,000

Using the ABC system, how much total manufacturing overhead cost would be assigned to Product H27T?
a. $291,000
b. $174,000
c. S465,000
d. $454,500
Business
1 answer:
8_murik_8 [283]2 years ago
7 0

Answer: $465,000

Explanation:

The activity-based costing (ABC) is used to know the total cost of activities that is vital to make a product. In ABC system, for every activity which goes into production, a cost will be assigned.

Based on the figures in the question, the following can be deduced:

Machining:

= 299,000/13,000 × 7,000

= 23 × 7,000

= $161,000

Machine set up:

= 240,000/400 × 150

= 600 × 150

= $90000

Product design:

= 80,000/2

= $40,000

Order size:

= 290,000/10,000 × 6,000

= 29 × 6,000

= $174,000

Total = $161,000 + $90,000 + $40,000 + $174,000

= $465,000

The total manufacturing overhead cost that would be assigned to Product H27T is $465,000.

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Answer:

The current value per share is $25.51

Explanation:

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    = $25.51

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2 years ago
Molina Company has beginning and ending work in process inventories of $130,000 and $145,000 respectively. If total manufacturin
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Answer:

cost of goods manufactured= $665,000

Explanation:

Giving the following information:

Molina Company has a beginning and ending work in process inventories of $130,000 and $145,000 respectively. If total manufacturing costs are $680,000

We need to use the following formula:

cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP

cost of goods manufactured= 130,000 + 680,000 - 145,000

cost of goods manufactured= 665,000

8 0
2 years ago
Imagine you have just bought some property and notice that the trees on the slope have curved trunks. what type of landslide eve
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Khalid has just found out that his friend Jason is terminally ill.This has made him feel sad and lonely at the thought of living
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Answer:

B) Anticipatory Grief

Explanation:

As Khalid has found out that his friend Jason is terminally ill. This has made him feel sad and lonely at the thought of living life without his friend. Khalid's feelings best represent the concept of anticipatory grief which refers to the feeling of sadness and grief occurring before the actual happening of that loss. We become sad and emotional even before the actual happening of some incident. For example, when our dear friend is in hospital after a sever accident, then we start feeling this anticipatory grief that the chances are more that he will be dead soon so we feel more grief and sadness.

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2 years ago
Suppose that end-of-term frustrations have produced this e-mail message to Professor Anne Brewer from a student who believes he
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A student who have wrongly been graded is writing an e mail to his professor in order to reconsider his grade on the bsis of the fact thet he has appeared a question in the term exam using the optimal cost method and the professor have assured the students that he will be giving 6 points extra to the student who will ans the question on the basis of the optimal cost method

<u>Explanation:</u>

End-of-term frustrations have produced this e-mail message to Professor Anne Brewer from a student who believes he should have received a B in his accounting class. If this message were recast into three or four clear sentences, the teacher might be more receptive to the student’s argument.

The e-mail message to Prof Anne Brewer can be rewritten as  

Sir

I think you have mistakenly awarded me C in the term examination conducted recently.As far as i can recall you mentioned in the class that the students who will answer  question number three using the optimal cost method will get 6 extra marks .I think you have forgotten to consider the same while grading me.Therefore i request you to reconsider my grade on the above mentioned basis.

Regards

6 0
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