Business, 25.06.2021 15:30, jadelovell21

Wieters Industries manufactures several products including a basic case for a popular smartphone. The company is considering adopting an activity-based costing approach for setting its budget. The company's production activities, budgeted activity costs, and cost drivers for the coming year are as follows: Activity Activity Overhead $ Cost Driver Cost Driver Quantity
Machine setup $200,000 # of setups 800
Inspection 120,000 # of quality tests 400
Materials receiving 252,000 # of purchase orders 1,800

The budgeted data for smartphone case production are as follows.

Direct materials $2.50 per unit
Direct labor $0.54 per unit
Number of setups 92
Number of quality tests 400
Number of purchase orders 50
Production 15,000 units

Required
a. Calculate the activity rate for each cost pool.
b. Calculate the activity-based unit cost of the smartphone case.

Answers: 2

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answered: coronadenise

Wieters Industries

a. Activity Rates:

Machine setup = $250

Inspection = 300

Materials receiving 140

b. The activity-based unit cost of the smartphone case is:

= $13.04

Explanation:

a) Data and Calculations:

Activity Activity Overhead $ Cost Driver Cost Driver Quantity

Machine setup $200,000 # of setups 800

Inspection 120,000 # of quality tests 400

Materials receiving 252,000 # of purchase orders 1,800

Total overhead costs $572,000

Activity Rates:

Machine setup = $250 ($200,000/800)

Inspection = 300 ($120,000/400)

Materials receiving 140 ($252,000/1,800)

Budgeted data for smartphone case production:

Direct materials $2.50 per unit

Direct labor $0.54 per unit

Number of setups 92

Number of quality tests 400

Number of purchase orders 50

Production 15,000 units

Overhead Applied to Smartphone Case:

Number of setups 92 * $250 = $ 23,000

Number of quality tests 400 * $300 = 120,000

Number of purchase orders 50 * $140 = 7,000

Total overhead applied = $150,000

Overhead per unit = $10 ($150,000/15,000)

Unit Cost of Smartphone Case:

Direct materials per unit $2.50

Direct labor per unit $0.54

Overhead per unit $10.00

Total unit cost = $13.04

answered: Guest

Secured loans are protected by collateral security. examples: title loans where the borrower uses the car title as collateral security interest rates are lower and repayments are longer therefore risk is low as a collateral security is given as guarantee to the bank in case of failure to pay the loanunsecured loans are not protected by collateral security but it is given on the creditworthiness of the borrower, trusting that she/he will pay on time. examples; payday loans is a short term loan where the borrower lends money from the bank and pays is back when the borrower receives his/her wages.interest rates are high and repayments are shorter. but the risk is high as no collateral security is given as a guarantee to the bank for payment of the loan

answered: Guest

answer(eu) is the correct answer;

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Wieters Industries manufactures several products including a basic case for a popular smartphone. Th...