187.Sparks Company produces and distributes two types of garden sculptures, Plain and Fancy. Budgeted cost and activity for each of its three activity cost pools are shown below. The company plans to produce and sell 64,000 plain units and 49,150 fancy units.
Budgeted Activity
Activity Cost PoolBudgeted
Cost
Plain
Fancy
Packaging$360,00070,000 finished units130,000 finished units
Material handling$262,500140,000 total parts210,000 total parts
Production setups$125,0005 total setups20 total setups
a. Compute the approximate overhead cost per unit of Plain under activity-based costing.
b. Compute the approximate overhead cost per unit of Fancy under activity-based costing.
a.
188.Upside Down, Incorporated designs custom storage spaces to eliminate clutter in both residential and business settings. The following data pertain to a recent reporting period:
Design department
Client consultation500 contact hours$100,000
Drawing1,000 design hours$75,000
Models20,000 square feet$25,000
Project Management
Supervision250 days$43,750
Billings150 jobs$52,500
Required:
a. Use ABC to compute overhead rates for each activity.
b. Assign costs to a 3,000 square foot job that requires 70 contact hours, 20 design hours, and 14 days to complete.
189.Inside Out, Company designs custom showroom spaces in interior design marts across the country. The following data pertain to a recent reporting period.
Design Department
Client consultation750 contact hours$127,500
Drawing1,200 design hours$96,000
Models15,000 square feet$21,000
Project Management
Supervision225 days$40,500
Billings150 jobs$54,000
Required:
a. Use ABC to compute overhead rates for each activity.
b. Assign costs to a 3,000 square-foot job that requires 70 contact hours, 20 design hours, and 14 days to complete.