Description
Original text, no plagiarism.
Complete the questions using Microsoft Excel. No other submission format is allowed.
–
Textbook:
Warren, C. S., & Tayler, W. B. (2020). Managerial accounting (15th ed). Cengage.
Print: ISBN: 9781337912020
eText ISBN: 9780357685709
meeting the assignment requirements.
Consider the following information for Hamburg Corporation:
Items
Beginning inventory
Units started during the year
Ending inventory
Inventory is 100% complete as to materials and 60% complete as to conversion.
Items
Materials
Beginning costs (SAR)
425,000
Costs added during the period (SAR)
1,255,000
Units
85,000
155,000
61,000
Conversion
686,000
980,000
Using the WEIGHTED AVERAGE method:
1. Calculate the number of units completed during the period.
2. Calculate equivalent units for conversion during the period.
3. Calculate cost per equivalent units for materials.
Mannheim Corporation manufactures small camping tents and family camping tents. The estimated direct labor time to produce each type of tent
is as follows:
Items
Small
Family
Estimated tents produced
24,500
11,000
Direct labor hours per tent
2.5
4.5
Estimated overhead for the period = 1,300,000 SAR.
1. Compute the overhead cost assigned to each type of tent assuming direct labor hours are used to allocate overhead costs.
The controller is not satisfied with the traditional method of allocating overhead because he believes that most of the overhead costs relate to the
family tent product line because of its complexity. He, therefore, developed the following three activity cost pools and related cost drivers to
better understand the costs.
Activity Cost Pools
Expected Use of Cost Drivers
Estimated Overhead Costs (SAR)
Setting up machines
1,000 setups
25,000
Assembling
90,000 labor hours
980,000
Inspection
1,200 inspections
230,000
1. Calculate the activity-based overhead rates for these three cost pools.
2. Compute the cost that is assigned to each tent using activity-based costing system, given the following information.
Expected Use of Cost Drivers per Product
Items
Number of setups
Direct labor hours
Number of inspections
Small
130
29,000
125
1. What do you believe the controller should do and why?
You must show your work for credit.
Family
825
55,000
1,125
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