Harrison Company Conventional Costing System

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Harrison Company makes two products and uses a conventional costing system in which a single plant-wide predetermined overhead rate is computed based on direct labor-hours. Data for the two products for the upcoming year follow:

	Rascon		Parcel
Direct materials cost per unit	$	13.90	$	22.30
Direct labor cost per unit	$	5.90	$	3.60
Direct labor-hours per unit		0.42		0.29
Number of units produced		17,000		75,000

 

These products are customized to some degree for specific customers.

 

Requirement 1:

The company's manufacturing overhead costs for the year are expected to be $681,804. Using the-company's conventional costing system, compute the unit product costs for the two products. (Do not round intermediate calculation. Round your final answers to 2 decimal places. Omit the "$" sign in your response.)

Fogerty Company Activity Cost Pool

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[The following information applies to the questions displayed below.]
 

Fogerty Company makes two products, titanium Hubs and Sprockets. Data regarding the two products follow:

 

	Direct Labor-Hours per unit	Annual Production
Hubs	0.80	19,000 units
Sprockets	0.40	78,000 units

 

Additional information about the company follows:

a. Hubs require $17 in direct materials per unit, and Sprockets require $11.

b. The direct labor wage rate is $15 per hour.

c. Hubs are more complex to manufacture than Sprockets and they require special equipment.

d. The ABC system has the following activity cost pools:

Slyvan Company - Activity Based Costing

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 5.

value:
1 points

Sylvan Company uses activity-based costing to determine product costs for external financial reports. The company's partially completed Manufacturing Overhead T-account for the current year is shown below:

 

Manufacturing Overhead

(a)            1,302,000

   

At the beginning of the year, the company made the following estimates of cost and activity for its five activity cost pools:

 

Activity Cost Pool	Activity Measure	Estimated Overhead Cost				Expected Activity
Labor related	Direct labor-hours		$	280,000		40,000	DLHs
Purchase orders	Number of orders		$	90,000		1,500	orders
Parts management	Number of part types		$	120,000		400	part types
Board etching	Number of boards		$	360,000		2,000	boards
General factory	Machine-hours		$	400,000		80,000	MHs

Accounting Activity Cost Pool

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Requirement 2:
At the beginning of the year, the company made the following estimates of cost and activity for its five activity cost pools:

 

Activity Cost Pool	Activity Measure	Estimated Overhead Cost				Expected Activity
Labor related	Direct labor-hours		$	270,000		40,000	DLHs
Purchase orders	Number of orders		$	61,500		1,500	orders
Parts management	Number of part types		$	115,000		400	part types
Board etching	Number of boards		$	380,000		2,000	boards
General factory	Machine-hours		$	416,000		80,000	MHs

   

Compute the activity rate (i.e., predetermined overhead rate) for each of the activity cost pools. (Round your answers to 2 decimal places. Omit the "$" sign in your response.)

 

Activity Cost Pool	Activity Rate
Labor related	$	per DLH
Purchase orders	$	per order
Parts management	$	per part type
Board etching	$	per board
General factory	$	per MH

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Worksheet	Learning Objective: 03-2
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