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(Solved by Expert Tutors) Use the following information to complete questions 25 throug


Use the following information to complete questions 25 through 28:

AB

Company manufactures and distributes two products, Alpha and Beta.? Overhead costs are currently allocated using the number of units produced as the allocation base.? The controller has recommended changing to an activity-based costing (ABC) system.? She has collected the following information:

Activity

Cost Driver

Estimated Overhead Amount

Estimated No. of Cost Driver Activities

Rate

Purchasing Materials

Pounds

$96000

80

$1200 per lb

Production Setups

No. of setups

$164000

20

$8200 per setup

Packaging

No. of units?

$260000

130,000

$2 per unit

$520000

???????????????????????

??? At the end of the period, the AB Company collected the following? information about the actual number of activity events for each of?the two products:

??????????????????????????????????????????????????????????????????????????????????????????????? Alpha????? Beta

??????????????????????? Purchased materials?????????????????????????????????? ? 56???????? 24

??????????????????????? Production setups?????????????????????????????????????? ?? 8???????? 12

??????????????????????? Packaging???????????????????????????????????????????????????? 80,000???? 50,000

??????????????????????? Units produced???????????????????????????????????????????? 80,000???? 50,000


25.? ???? What is the total overhead allocated to Alpha using the current system?

??????????????????????????????????? A.? ????? $200,000

??????????????????????????????????? B.? ????? $260,000

??????????????????????????????????? C.? ????? $292,800

??????????????????????????????????? D.? ????? $320,000

???????????????????????

26.? ???? What is the total overhead allocated to Beta using the current system?

??????????????????????????????????? A.? ????? $200,000

??????????????????????????????????? B.? ????? $260,000

??????????????????????????????????? C.? ????? $292,800

??????????????????????????????????? D.? ????? $320,000

???????????????????????

27.? ???? What is the total overhead per unit allocated to Beta using activity-based costing?

??????????????????????????????????? A.? ????? $4.54

??????????????????????????????????? B.? ????? $5.20

??????????????????????????????????? C.? ????? $4.00

??????????????????????????????????? D.? ????? $3.66

???????????????????????

28.? ???? What is the total overhead per unit allocated to Alpha using activity-based ?????costing?

??????????????????????????????????? A.? ????? $4.54

??????????????????????????????????? B.? ????? $5.20

??????????????????????????????????? C.? ????? $4.00

??????????????????????????????????? D.? ????? $3.66

 


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DATE ANSWERED

Apr 19, 2020

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