Week 2 Written Assignment - Problems and Exercises

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chapter_4_-_p2_week_2.xlsx
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Template

P 04-02 Name :
Section :
Enter appropriate amount or item in the shaded cells. Use the drop-down lists when available.
An asterisk (*) will appear next to an incorrect entry in the outlined cells.
1.
Hawes Order:
Direct materials
Purchased parts
Direct labor
Overhead
Total cost of order
Product unit cost
2.
Parts production
Product assembly
Packaging
Setup
Engineering systems design
Building occupancy
3. Printware Products, Inc.
Bill of Activities
Hawes Order
Activity Activity Cost Rate Cost Driver Level Activity Cost
Unit level: Engineering systems design
per machine hour machine hours Parts production
per assembly hour assembly hours Product assembly
per package packages Packaging
Batch level: Setup
per setup setups
Product level: Parts production
per engineering hour engineering hours Product assembly
Facility level: Packaging
per machine hour machine hours Building occupancy
Total activity costs assigned to job Parts production
Total units of job Setup
Activity costs per unit
Shaista Fathima: Round value to two decimal places. 		Engineering systems design
Building occupancy
Product assembly
4. Cost summary:
Direct materials
Purchased parts Packaging
Activity costs Setup
Total cost of order Engineering systems design
Building occupancy
Total cost of order Units Product unit cost
Product unit cost =
+
5. -
Product unit cost—traditional costing x
Product unit cost—activity-based costing /
Difference
Shaista Fathima: Enter as a negative value and round it to two decimal places.
Shaista Fathima: Round value to two decimal places.

Solution

P 18-02_Sol Name : SOLUTION
Section :
Enter appropriate amount or item in the shaded cells. Use the drop-down lists when available.
An asterisk (*) will appear next to an incorrect entry in the outlined cells.
1.
Hawes Order:
Direct materials $ 17,552
Purchased parts 14,856
Direct labor 2,380
Overhead 5,712
Total cost of order $ 40,500
Product unit cost $ 90
2.
Parts production Unit level
Product assembly Unit level
Packaging Unit level
Setup Batch level
Engineering systems design Product level
Building occupancy Facility level
3. Printware Products, Inc.
Bill of Activities
Hawes Order
Activity Activity Cost Rate Cost Driver Level Activity Cost
Unit level: Engineering systems design
Parts production $37.00 per machine hour 82 machine hours $ 3,034 Parts production
Product assembly $42.00 per assembly hour 96 assembly hours 4,032 Product assembly
Packaging $5.60 per package 150 packages 840 Packaging
Batch level: Setup
Setup $36.00 per setup 12 setups 432
Product level: Parts production
Engineering systems design $28.00 per engineering hour 18 engineering hours 504 Product assembly
Facility level: Packaging
Building occupancy $10.00 per machine hour 82 machine hours 820 Building occupancy
Total activity costs assigned to job $ 9,662 Parts production
Total units of job 450 Setup
Activity costs per unit $21.47
Shaista Fathima: Round value to two decimal places. 		Engineering systems design
Building occupancy
Product assembly
4. Cost summary:
Direct materials $ 17,552
Purchased parts 14,856 Packaging
Activity costs 9,662 Setup
Total cost of order $ 42,070 Engineering systems design
Building occupancy
Total cost of order Units Product unit cost
Product unit cost $ 42,070 / 450 = $93.49
Shaista Fathima: Round value to two decimal places.
+
5. -
Product unit cost—traditional costing $90 x
Product unit cost—activity-based costing 93.49 /
Difference ($3.49)
Shaista Fathima: Enter as a negative value and round it to two decimal places.

Shaista Fathima: Round value to two decimal places.