Ask Question, Ask an Expert


Ask Accounting Basics Expert

Q1) Carroll Company manufactures two products, Product DRT and Product CRT.

Company estimated it would incur $130,890 in manufacturing overhead costs in current period. Overhead presently is allocated to the products on basis of direct labour hours. Data concerning present period's operations appear below:

  Product DRT Product CRT
Estimated volume 400 units 1,200 units
Direct labour hours per unit  0.70 hour 1.20 hours
Direct materials cost per unit $10.70 $16.70
Direct labour cost per unit $11.20 $19.20

Company is considering using activity-based costing system to find out unit product costs instead of its traditional system based on direct labour hours. Activity-based costing system would use three activity centres.  Data relating to these activities for present period:

    Expected Activity
Activity Center Estimated Overhead Costs Total DRT CRT
Machine setups $13,570 230 100 130
Purchase orders 91,520 2,080 810 1,270
General factory 25,800 1,720 280 1,440

Find out unit product cost of each product for presnt period using activity-based costing approach. (Material and direct labour are unchanged. Variety of arithmetic paths can be utilized to deal with over head. Usually, you should assign the three overhead pools between two products, and then compute overhead per unit.)

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M918508

Have any Question? 

Related Questions in Accounting Basics

Objectives of the assignmentthis assignment develops your

Objectives of the Assignment This assignment develops your capabilities to analyse, reason logically and conceptualise financial, social and environmental issues; and is aligned with the Course Learning Outcomes of ident ...

Instructions1 this assignment is to be submitted in

Instructions 1. This assignment is to be submitted in accordance with assessment policy stated in the Subject Outline and Student Handbook. 2. It is the responsibility of all students who have their name on the submitted ...

Francis moved in with her mother beatrice when beatrices

Francis moved in with her mother, Beatrice, when Beatrice's health started to fail. Francis cared for her mother as a devoted child and never expected anything in return. When Beatrice needed to move to a nursing home, s ...

You are managing a systems development team for a company

You are managing a systems development team for a company who wants to implement a new accounting information system. Your team has been asked to review the process prior to implementation. Produce a 700-to 1,050 word pa ...

Question -owing to low liquidity lisa ltd decides on 1 july

Question - Owing to low liquidity, Lisa Ltd decides on 1 July 2015 to sell its land and buildings to Anderson Ltd. The carrying values of the land and buildings in the books of Lisa Ltd, at 1 July 2015, are: Land at Cost ...

Common-size balance sheet of michael hill international ltd

Common-size Balance Sheet of Michael Hill International Ltd for the years 2014 and 2015: Particulars 2015   $000 % of total 2014    $000 % of total ASSETS         Current assets         Cash and cash equivalents 6797 1.9 ...

Individual case study assignmentcash flow forecasts and

Individual Case Study Assignment Cash flow forecasts and projected financial statements For the following Individual Case Study, you assume the role of someone who has been asked to provide a Business Report for a group ...

On 30 june 2006 salohcin ltd entered into a nonshy

On 30 June 2006, Salohcin Ltd entered into a non­ cancellable lease with Ffoeg Ltd, for a period of 4 years. The lessor is a Manufacturer/Dealer of the leased equipment. The leased asset is a specific item of industrial ...

Accounting papermany companies use leases to acquire higher

Accounting Paper Many companies use leases to acquire higher priced assets. Leasing is an important activity for many entities. Presently some leases are capitalized and some are treated as operating leases. Opponents of ...

Provide a three page discussion in pdf to address the

Provide a three page discussion in PDF to address the following: • Changes to Rev Rec since initial issuance propose impact • Changes to IFRS 9 since initial issuance propose impact • Summary of the latest IFRS since 8 e ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate