Davis Company produces two hair dryers: regular and deluxe. The company has four activities: machining, engineering, receiving, and inspection. Information on these activities and their drivers is given below. Regular Deluxe Total Units produced 80,000 240,000 Prime costs $7,200,000 $28,800,000 $36,000,000 Machine hours 80,000 400,000 480,000 Engineering hours 200 1,800 2,000 Receiving orders 300 900 1,200 Inspection hours 900 1,800 2,700 Overhead costs: Machining $5,760,000 Engineering 800,000 Receiving 396,000 Inspecting products 459,000 Required: 1. Calculate the four activity rates. Machining rate S 12 per machine hour Engineering rate S 400 per hour
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- Frenchys makes two types of scarves: polyester (poly) and silk. There are two cost pools: setup, with an estimated $120,000 in overhead, and inspection, with $30,000 in overhead. Poly is estimated to have 800,000 setups and 450,000 inspections, while silk has 400,000 setups and 150,000 inspections. How much overhead is applied to each product?Customs makes two types of hats: polyester (poly) and silk. There are two cost pools: setup, with an estimated $100,000 in overhead, and inspection, with $25,000 in overhead. Poly is estimated to have 750,000 setups and 170,000 inspections, while silk has 250,000 setups and 80,000 inspections. How much overhead is applied to each product?The following product costs are available for Stellis Company on the production of erasers: direct materials, $22,000; direct labor, $35,000; manufacturing overhead, $17,500; selling expenses, $17,600; and administrative expenses; $13,400. What are the prime costs? What are the conversion costs? What is the total product cost? What is the total period cost? If 13,750 equivalent units are produced, what is the equivalent material cost per unit? If 17,500 equivalent units are produced, what is the equivalent conversion cost per unit?
- Davis Company produces two hair dryers: regular and deluxe. The company has four activities: machining, engineering, receiving, and inspection. Information on these activities and their drivers is given below. Regular Deluxe Total Units produced 140,000 420,000 — Prime costs $12,320,000 $47,880,000 $60,200,000 Machine hours 140,000 700,000 840,000 Engineering hours 400 3,600 4,000 Receiving orders 400 1,200 1,600 Inspection hours 800 1,600 2,400 Overhead costs: Machining $11,760,000 Engineering 1,720,000 Receiving 528,000 Inspecting products 336,000 Required: 1. Calculate the four activity rates. Machining rate $_____ Engineering rate $______ Receiving rate $_____ Inspecting rate $____ 2. Calculate the unit costs using activity rates. Round…Davis Company produces two hair dryers: regular and deluxe. The company has four activities: machining, engineering, receiving, and inspection. Information on these activities and their drivers is given below. ONLY NEED HELP WITH NUMBERS 2&3!!! Regular Deluxe Total Units produced 80,000 240,000 — Prime costs $7,040,000 $26,400,000 $33,440,000 Machine hours 80,000 400,000 480,000 Engineering hours 300 2,700 3,000 Receiving orders 400 1,200 1,600 Inspection hours 1,000 2,000 3,000 Overhead costs: Machining $7,200,000 Engineering 1,590,000 Receiving 320,000 Inspecting products 300,000 Required: 1. Calculate the four activity rates. Machining rate $15 per machine hour Engineering rate $530 per hour Receiving rate $200 per order Inspecting rate…Gable Company uses three activity pools. Each pool has a cost driver. Information for Gable Company follows: Total Cost of Pool $ 454,960 100,000 72,720 Estimated Cost Driver 96,800 10,000 505 Activity Pools Machining Designing costs Setup costs Suppose that Gable Company manufactures three products, A, B, and C. Information about these products follows: Product A Product B 38,000 4,000 40 Number of machine hours Number of design hours Number of batches Cost Driver Number of machine hours Number of design hours Number of batches Product A Product B Product C Total Overhead Assigned 48,000 2,200 170 Required: Using activity rates, determine the amount of overhead assigned to each product. Note: Do not round intermediate calculations. Round the final answer to nearest whole number. Product C 10,800 3,800 295
- Davis Company produces two hair dryers: regular and deluxe. The company has four activities: machining, engineering, receiving, and inspection. Information on these activities and their drivers is given below. Units produced Regular Deluxe 330,000 Total 110,000 Prime costs $8,360,000 $38,280,000 $46,640,000 Machine hours 110,000 550,000 660,000 Engineering hours 300 2,700 3,000 Receiving orders 400 1,200 1,600 Inspection hours 600 1,200 1,800 Overhead costs: Machining $7,260,000 Engineering 1,410,000 Receiving 448,000 Inspecting products 270,000 Required: 1. Calculate the four activity rates. Machining rate Engineering rate Receiving rate Inspecting rate per machine hour per hour per order per hour 2. Calculate the unit costs using activity rates. Round your answers to the nearest cent. Regular Deluxe Unit cost per unit per unit Calculate the overhead cost per unit. Round your answers to the nearest cent. Overhead Cost Regular Deluxe per unit per unit 3. If consumption ratios instead…Lynwood, Inc. produces two different products (Product A and Product X) using two different activities: Machining, which uses machine hours as an activity driver, and Inspection, which uses number of batches as an activity driver. The activity rate for Machining is $130 per machine hour, and the activity rate for Inspection is $520 per batch. The activity drivers are used as follows: Product A Product X Total Machine hours 1,200 3,200 4,400 Number of batches 46 16 62 What is the amount of Machining cost assigned to Product X? Multiple Choice $416,000 $27,500 $520,000 $130,000Requ Gable Company uses three activity cost pools. Each pool has a cost driver. Information for Gable Company follows: Activity Cost Pools Machining Designing costs Setup costs Number of machine hours Number of design hours Number of batches Suppose that Gable Company manufactures three products, A, B, and C. Information about these products follows: Product A Product B Product C 26,000 2,800 40 Total Cost of Pool Cost Driver $250,600 Number of machine hours 61,600 Number of design hours 66,402 Number of batches Product A Product B Product C Total Overhead Assigned 36,000 1,600 170 Estimated Cost Driver 71,600 7,000 465 9,600 2,600 255 Required: 1. Using activity proportions, determine the amount of overhead assigned to each product. (Do not round your intermediate calculations. Round your final answers to nearest whole number.)
- Saved Lynwood, Inc. produces two different products (Product A and Product X) using two different activities: Machining, which uses machine hours as an activity driver, and Inspection, which uses number of batches as an activity driver. The activity rate for Machining is $180 per machine hour, and the activity rate for Inspection is $540 per batch. The activity drivers are used as follows: Product A Product X Total Machine hours 1,400 3,100 4,500 Number of batches 47 18 65 15 What is the amount of Inspection cost assigned to Product A? Multiple Cholce $9.720 $25,380 $252,000The following table presents the activities and activity drivers that LampPlus uses in manufacturing Product 1 and Product 2. Complete the table: Activity Design Preparation Machining Finishing Inspection Packaging Shipping Cost Activity Driver $ 39,060 Design time $ 67,650 Labor hours 105,200 Machine hours $ Batches Units Orders $ 12,720 Packages Driver Usage Prod. 1 840 3,130 209 76 Prod. 2 1,330 hours hours 300 56 Activity Rate $ $ $ $ /hour /hour 20 /hour 50 /batch 17 /unit 302 /order /package Activity Cost:Prod. 1 $ $ $ $ 34,430 31,200 Activity Cost:Prod. 2 9,690 $ 12,986 $ 19,720 3,600Hazelnut Corporation manufactures lawn ornaments. It currently has two product lines, the basic and the luxury. Hazelnut has a total of $143,484 in overhead. The company has identified the following information about its overhead activity pools and the two product lines: Quantity or Amount Consumed by Basic Activity Pools Materials handling Quality control Machine maintenance Cost Driver Number of moves Number of inspections Number of machine hours Required 1 Complete this question by entering your answers in the tabs below. Basic Model Luxury Model Required 2 Required 3 Required 4 Required: 1. Suppose Hazelnut used a traditional costing system with machine hours as the cost driver. Determine the amount of overhead assigned to each product line. 2. Calculate the activity rates for each activity pool in Hazelnut's ABC system. 3. Calculate the amount of overhead that Hazelnut will assign to the basic line if it uses an ABC system. 4. Determine the amount of overhead Hazelnut will assign…