I submitted this question earlier but failed to attach the beginning part of the question. I am not sure how to figure this out Concord Toys is exploring options to help reduce overhead costs especially for non-value added activities. One of the proposals isfrom the National Toy Association. For an additional $1 per order, this entity could perform additional safety checks that wouldreduce the assembly line inspection costs by $0.01 per toy. Compute the overhead cost assigned to the toddler toy line for themonth of August using activity-based costing under this proposal.Overhead cost assigned$ Concord Toys & Games, Inc. manufactures specialty toys. Concord uses a traditional product costing system to assign overhead costsuniformly to all products. To meet industry safety standards and to assure its customers of safe and durable toys, Concord assigns itsquality-control overhead costs to all products at a rate of 23% of direct labor costs. Its direct labor cost for the month of August for itstoddler line of toys is $302,000. In response to repeated requests from its financial vice president, Concord's management agrees toadopt activity-based costing. Data relating to the toddler line of toys for the month of August are as follows:Activity Cost PoolsMaterials InspectionAssembly Line InspectionNational Toy Association CertificationCost DriversNumber of poundsNumber of finished toysRetail ordersOverheadRate$0.70 per pound$0.15 per toy$2.00 per orderNumber of CostDrivers Usedper Activity44,000 pounds182,000 toys900 orders

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Description: I submitted this question earlier but failed to attach the beginning part of the question. I am not sure how to figure this out Concord Toys is exploring options to help reduce overhead costs especially for non-value added activities. One of the prop

Overhead costs, often referred to as overhead or operating expenses, refer to those expenses…

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Concord Toys is exploring options to help reduce overhead costs especially for non-value added activities. One of the proposals is from the National Toy Association. For an additional $1 per order, this entity could perform additional safety checks that would reduce the assembly line inspection costs by $0.01 per toy. Compute the overhead cost assigned to the toddler toy line for the month of August using activity-based costing under this proposal. Overhead cost assigned $

Concord Toys is exploring options to help reduce overhead costs especially for non-value added activities. One of the proposals is from the National Toy Association. For an additional $1 per order, this entity could perform additional safety checks that would reduce the assembly line inspection costs by $0.01 per toy. Compute the overhead cost assigned to the toddler toy line for the month of August using activity-based costing under this proposal. Overhead cost assigned $

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter15: Lean Accounting And Productivity Measurement

Section: Chapter Questions

Problem 2CE: During the week of June 12, Harrison Manufacturing produced and shipped 15,000 units of its aluminum...

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SmokeCity, Inc., manufactures barbeque smokers. Based on past experience, SmokeCity has found that its total annual overhead costs can be represented by the following formula: Overhead cost = 543,000 + 1.34X, where X equals number of smokers. Last year, SmokeCity produced 20,000 smokers. Actual overhead costs for the year were as expected. Required: 1. What is the driver for the overhead activity? 2. What is the total overhead cost incurred by SmokeCity last year? 3. What is the total fixed overhead cost incurred by SmokeCity last year? 4. What is the total variable overhead cost incurred by SmokeCity last year? 5. What is the overhead cost per unit produced? 6. What is the fixed overhead cost per unit? 7. What is the variable overhead cost per unit? 8. Recalculate Requirements 5, 6, and 7 for the following levels of production: (a) 19,500 units and (b) 21,600 units. (Round your answers to the nearest cent.) Explain this outcome.
Box Springs. Inc., makes two sizes of box springs: queen and king. The direct material for the queen is $35 per unit and $55 is used in direct labor, while the direct material for the king is $55 per unit, and the labor cost is $70 per unit. Box Springs estimates it will make 4,300 queens and 3,000 kings in the next year. It estimates the overhead for each cost pool and cost driver activities as follows: How much does each unit cost to manufacture?
During the week of June 12, Harrison Manufacturing produced and shipped 15,000 units of its aluminum wheels: 3,000 units of Model A and 12,000 units of Model B. The following costs were incurred: Required: 1. Assume initially that the value-stream costs and total units shipped apply only to one model (a single-product value stream). Calculate the unit cost, and comment on its accuracy. 2. Calculate the unit cost for Models A and B, and comment on its accuracy. Explain the rationale for using units shipped instead of units produced in the calculation. 3. What if Model A is responsible for 40 percent of the materials cost? Show how the unit cost would be adjusted for this condition.
Sheridan Toys and Games, Inc manufactures specialty toys. Sheridan uses a traditional products costing system to assign overhead cost uniformly to all products. To meet industry safety standards and to assure its customers of safe and durable toys. Sheridan assigned its quality-control overhead costs to all products at a rate of 22% of direct labor costs. Its direct labor cost for the month of August for its toddler line of toys is 292,000. In response to repeated requests from its financial vice president, Sheridan’s management agrees to adopt activity-based costing. Data relating to the toddler line of toys for the month of August are as follow Activity Cost Pools Cost Drivers Overhead rate Number of Cost Drivers used per Activity Materials Inspection Number of pounds $0,70 per pound 49,000 pounds Assembly Line Inspection Number of finished toys $ 0.16 per toy 168,000 toys National Toy Association Certification Retail orders $2.00 per order…
Sunland Toys & Games, Inc. manufactures specialty toys. Sunland uses a traditional product costing system to assign overhead costs uniformly to all products. To meet industry safety standards and to assure its customers of safe and durable toys, Sunland assigns its quality-control overhead costs to all products at a rate of 21% of direct labor costs. Its direct labor cost for the month of August for its toddler line of toys is $325,000. In response to repeated requests from its financial vice president, Sunland's management agrees to adopt activity-based costing. Data relating to the toddler line of toys for the month of August are as follows: Activity Cost Pools Materials Inspection Assembly Line Inspection National Toy Association Certification (a) Traditional costing Activity-based costing Compute the quality-control overhead cost to be assigned to the toddler toy line for the month of August (1) using the traditional product costing system (direct labor is the cost driver), and (2)…
Sheridan Toys and Games, Inc manufactures specialty toys. Sheridan uses a traditional products costing system to assign overhead cost uniformly to all products. To meet industry safety standards and to assure its customers of safe and durable toys. Sheridan assigned its quality-control overhead costs to all products at a rate of 22% of direct labor costs. Its direct labor cost for the month of August for its toddler line of toys is 292,000. In response to repeated requests from its financial vice president, Sheridan’s management agrees to adopt activity-based costing. Data relating to the toddler line of toys for the month of August are as follow Activity Cost Pools Cost Drivers Overhead rate Number of Cost Drivers used per Activity Materials Inspection Number of pounds $0,70 per pound 49,000 pounds Assembly Line Inspection Number of finished toys $ 0.16 per toy 168,000 toys National Toy Association Certification Retail orders $2.00 per order…
S Company produces custom widgets for its customers. The company uses an activity-based costing system for its overhead costs. One particular customer, Volley Inc., requested 40 jobs during the year for a total of 157 units, requiring a total of 193 machine hours. Each unit requires $0.47 in direct materials and $1.85 in direct labor. In accordance with ABC, $2009 of overhead was applied to Volley, Inc. The customer was charged $3791 for these jobs. Using ABC, compute the cost for S Corp. to produce one unit for Volley Inc. Round ONLY your final answer to 2 decimal places. Do not round intermediate calculations. Enter as a positive number.
Waterway Toys & Games, Inc. manufactures specialty toys. Waterway uses a traditional product costing system to assign overhead costs uniformly to all products. To meet industry safety standards and to assure its customers of safe and durable toys, Waterway assigns its quality-control overhead costs to all products at a rate of 21% of direct labor costs. Its direct labor cost for the month of August for its toddler line of toys is $321,000. In response to repeated requests from its financial vice president, Waterway's management agrees to adopt activity-based costing. Data relating to the toddler line of toys for the month of August are as follows: Activity Cost Pools Materials Inspection Assembly Line Inspection National Toy Association Certification (a) Traditional costing Activity-based costing Compute the quality-control overhead cost to be assigned to the toddler toy line for the month of August (1) using the traditional product costing system (direct labor is the cost driver), and…
Sardi Incorporated is considering whether to continue to make a component or to buy it from an outside supplier. The company uses 12,600 of the components each year. The unit product cost of the component according to the company's cost accounting system is given as follows: Direct materials $ 8.40 Direct labor 5.40 Variable manufacturing overhead 1.20 Fixed manufacturing overhead 3.20 Unit product cost $ 18.20 Assume that direct labor is a variable cost. Of the fixed manufacturing overhead, 35% is avoidable if the component were bought from the outside supplier. In addition, making the component uses 1 minutes on the machine that is the company's current constraint. If the component were bought, time would be freed up for use on another product that requires 2 minutes on this machine and that has a contribution margin of $4.80 per unit. When deciding whether to make or buy the component, what cost of making the component should be compared to the price of buying the…
Dawson Toys, Limited, produces a toy called the Maze. The company has recently created a standard cost system to help control costs and has established the following standards for the Maze toy: Direct materials: 7 microns per toy at $0.34 per micron Direct labor: 1.3 hours per toy at $6.70 per hour During July, the company produced 5,200 Maze toys. The toy's production data for the month are as follows: Direct materials. 74,000 microns were purchased at a cost of $0.33 per micron. 28,500 of these microns were still in inventory at the end of the month. Direct labor. 7,060 direct labor-hours were worked at a cost of $50,126. Required: 1. Compute the following variances for July: Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Do not round intermediate calculations. Round final answer to the nearest whole dollar amount. a. The materials price and quantity…
Dawson Toys, Ltd., produces a toy called the Maze. The company has recently established a standard cost system to help control costs and has established the following standards for the Maze toy: Direct materials: 7 microns per toy at $0.32 per micron Direct labor: 1.4 hours per toy at $7.10 per hour During July, the company produced 4,600 Maze toys. The toy's production data for the month are as follows: Direct materials: 73,000 microns were purchased at a cost of $0.30 per micron. 32,750 of these microns were still in inventory at the end of the month. Direct labor: 6,740 direct labor-hours were worked at a cost of $50,550. Required: 1. Compute the following variances for July: (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Do not round intermediate calculations. Round final answers to the nearest whole dollar amount.) a. The materials price and…
Dawson Toys, Ltd., produces a toy called the Maze. The company has recently established a standard cost system to help control costs and has established the following standards for the Maze toy: Direct materials: 7 microns per toy at $0.32 per micron Direct labor: 1.4 hours per toy at $7.10 per hour During July, the company produced 4,600 Maze toys. The toy's production data for the month are as follows: Direct materials: 73,000 microns were purchased at a cost of $0.30 per micron. 32,750 of these microns were still in inventory at the end of the month. Direct labor: 6,740 direct labor-hours were worked at a cost of $50,550. Required: 1. Compute the following variances for July: (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Do not round intermediate calculations. Round final answers to the nearest whole dollar amount.) a. The materials price and…