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Homework answers / question archive / Barnette Corporation produces computer tables the company produces two different styles of tables Product and Product V2: an ABC costing ystem and has the following overhead costs: Overhead Costs Manufacturing overhead Selling overhead Administrative overhead Total Overhead 7 8 9 The company uses the following activity cost pools and drivers: ID $300,000 $200,000 $100,000 $600
Barnette Corporation produces computer tables the company produces two different styles of tables Product and Product V2: an ABC costing ystem and has the following overhead costs: Overhead Costs Manufacturing overhead Selling overhead Administrative overhead Total Overhead 7 8 9 The company uses the following activity cost pools and drivers: ID $300,000 $200,000 $100,000 $600.000 Activity cost pool Driver Assembly Number of units Setups Number of setups Machining Machine hours Customer support Number of customers Other Not allocated to customers or products V Total Activity Product H9 Product V2 5.000 1.000 4,000 100 20 80 10,000 4,000 6,000 160 80 80 Based on an extensive analysis and surveys conducted with all employees, Barnette distributes its overhead to the cost pools as follows: Assembly 40% 5% 30% Manufacturing overhead Selling overhead Administrative overhead Setups 20% 5% 20% Other 5% Customer Support 10% 80% 30% Machining 25% 5% 10% 5% 10% = and direct costs per unit for last year are as follows: Sheet1 New
Ortomer support Other Number of customers Not allocated to customers proches Based on an extensive analysis and survey conducted with all employees, ornette distributes its terhead to the cost pools as follemes 10 an BASR ASRI Manufacturing overhead Selling overhead Administrative overhead Assembly 40% SK 30% Setups 20% 5% 20% Machining 25% SX 100% Customer Support 10% BOX 30% Other 5% 5% 10X Total 100 100% 100% 25 Price and direct costs per unit for last year are as follows: 26 27 28 Selling price Direct material Direct labour Product H9 Product V2 $400.00 $300.00 $150.00 $150.00 $50.00 $37.50 Required: Part 1: Prepare a report showing first stage allocation of the overhead costs to the activity cost pools. (5 marks) Assembly Setups Machining Customer Support Other Total Manufacturing overhead Selling overhead Administrative overhead Total overhead costs ctivity rates for each cost pool. (4 marks)
Required: Part 1: Prepare a report showing first stage allocation of the head out to the activity pools males) Assembly Manufacturing overhead Selling overhead Administrative overhead Total overhead costs Setups Machining Customer Support Other Part 2: Calculate the activity rates for each cost pool. (4 marks) Activity Cost Pool Assembly Setups Machining Customer Support Other 3: Last year, one of Barnette's customers, Tutors for All purchased 25 units of Product H9. In total, the sales to Tutors for All required A setup 275 machine hours. Compute the product margin using an income statement format. (6 marks) All rows may not be required. eet1 New
Activity Cost Pool Assembly Setup Machining Customer Support Other Part 3: Last year, one of Barnette's customers, Tutors for All purchased 25 units of Product 19. In total, the sales to Tutorial required and 175 machine hours. Compute the product margin using an income statement format. (6 marks) All row may not be required Product margin (loss)
