Question;1.;Question;Alliance;Company manufactures two products (brushes and combs). The overhead costs;have been divided into four cost pools that use the following activity;drivers.;#;of Setups;#;of Orders;Machine;Hours;Packing;Orders;Brushes;30;35;2,000;100;Combs;10;65;6,000;150;Cost per Pool;$20,000;$10,000;$280,000;$60,000;a. Compute the allocation rates for each of the activity drivers listed.;b. Allocate the overhead costs to Products S and T using activity-based;costing;c. Compute the overhead rate using machine hours under the;functional-based costing system.;d. Allocate the overhead costs to Products S and T using the;functional-based costing system overhead rate calculated in part (c).;2.;Question;Complete Exercise 4.10 located on page 182 & 183;in the textbook.;1.;Question;Bubble;Corporation manufactures two products, I and II, from a joint process. A;single production costs $4,000 and results in 100 units of I and 400;units of II. To be ready for sale, both products must be processed;further, incurring separable costs of $1 per unit for I and $2 per unit;for II. The market price for Product I is $20 and for Product II is $15.;Required;a. Allocate joint production costs to each product using the physical;units method.;b. Allocate joint production costs to each product using the net;realizable value method.;c. Allocate joint production costs to each product using the constant;gross margin percentage method.;2.;Question;Mike's;Meats incurs costs of $4,000 while processing raw chicken meat into three;products: breasts, wings, and thighs. The meat is then sold to local;grocery stores based on the following.;Sales;Price per lb;Quantity;produced (lbs);Breast;$2.00;3,000;Wings;$0.50;1,000;Thighs;$1.00;2,000;Required: (Calculate relative quantity to three decimal points.);a. Determine the cost and gross profit percentage for each type of;chicken using the physical units method of joint cost allocation.;b. Repeat part (a) using the sales-value-at-split-off method of joint;cost allocation.;c. The company has an opportunity to sell wings to local restaurants for;$1.00 per pound but additional packaging is required, which will cost;$300 per 1,000 lb. Assuming the physical unit method is used to allocate;joint costs, should the offer be accepted?;Student Answer;Instructor Explanation;Points;Received;8;of 10;Comments;Check;part b.
Paper#38151 | Written in 18-Jul-2015Price : $24