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I don\'t need A-D https://www.chegg.com/homework-help/questions-and-answers/need-asap-please-answer-complete-ll-rate-instantly-thank--budgeted-overhead-receiving-2-72-q30136589 I need this ASAP but please only answer if you can complete. I\'ll rate you instantly. Thank you. Budgeted Overhead: Receiving $ 2,720,000 Assembling 4,324,000 Machining 7,304,000 Testing 252,000 Total Budgeted Overhead Costs $ 14,600,000 Direct Labor Hours: Nimbus 800,000 Firebolt 200,000 Total Direct Labor Hours 1,000,000 Pounds Nimbus 300,000 Firebolt 100,000 Total Pounds 400,000 Number of Parts Nimbus 700,000 Firebolt 240,000 Total Number of Parts 940,000 Machine Hours Nimbus 600,000 Firebolt 280,000 Total Number of Parts 880,000 Number of Tests Nimbus 200 Firebolt 100 Total Tests 300 Using Plantwide Overhead: a. What is the Plantwide Overhead per hour? b.Total Overhead for Nimbus? c.Total Overhead for Firebolt? d. Per unit for Nimbus? e. Per unit for Firebolt? Using Activity Based Costing: f. What is the receiving cost per pound? g. The cost driver for assembly is the number of parts, but what is the overhead rate per part of the Assembly Cost Pool? h. The cost driver for machining is machine hours, but what is the overhead rate per machine hour for Machining Cost Pool? i. What is the rate per test for Testing Activity Pool? j. ABC total overhead cost for Nimbus? k. ABC total overhead cost for Firebolt? l. ABC per unit for Nimbus? m. ABC per unit for Firebolt? n. Does plantwide cause cost distortion? If so, how can ABC eliminate that? A different section if possibe: VALUE OR NON-VALUE? Consulting clients? Staff meetings? Onsite supervisor? Handing out meals at work? Entertaining perspective clients? Provides training to clients employees?
Solution
Answers
Overheads
Overhead cost
Cost driver
Total Activity Cost drivers
Overhead cost per Activity cost driver
[A]
[B]
[A/B]
Receiving
$ 2,720,000.00
Pounds
400,000
$ 6.80
Assembling
$ 4,324,000.00
No. of parts
940,000
$ 4.60
Machining
$ 7,304,000.00
Machine hours
880,000
$ 8.30
Testing
$ 252,000.00
No. of test
300
$ 840.00
Total
$ 14,600,000.00
Nimbus Allocation:
Overheads
Overhead cost per Activity cost driver
Cost driver
No. of cost driver for Nimbus
Overhead allocated
Receiving
$ 6.80
Pounds
300,000
$ 2,040,000.00
Assembling
$ 4.60
No. of parts
700,000
$ 3,220,000.00
Machining
$ 8.30
Machine hours
600,000
$ 4,980,000.00
Testing
$ 840.00
No. of test
200
$ 168,000.00
Total
$ 10,408,000.00
Firebolt allocation:
Overheads
Overhead cost per Activity cost driver
Cost driver
No. of cost driver for Firebolt
Overhead allocated
Receiving
$ 6.80
Pounds
100,000
$ 680,000.00
Assembling
$ 4.60
No. of parts
240,000
$ 1,104,000.00
Machining
$ 8.30
Machine hours
280,000
$ 2,324,000.00
Testing
$ 840.00
No. of test
100
$ 84,000.00
Total
$ 4,192,000.00
‘f’: receiving cost per pound = $6.80
‘g’: Overhead rate per part of assembly cost pool = $ 4.60
‘h’: Overhead rate per machine hours for machining cost pool = $ 8.30
‘I’: Rate per test = $ 840
‘j’: Total Overhead cost for Nimbus = $ 10,408,000
‘k’: Total Overhead cost for Firebolt = $ 4,192,000
‘l’: ABC per unit of Nimbus = $10,408,000 divided by Total Nimbus units (not provided)
‘m’: ABC per unit of Fireplot = $ 4,192,000 divided by Total Fireplot units (not provided)
| Overheads | Overhead cost | Cost driver | Total Activity Cost drivers | Overhead cost per Activity cost driver |
| [A] | [B] | [A/B] | ||
| Receiving | $ 2,720,000.00 | Pounds | 400,000 | $ 6.80 |
| Assembling | $ 4,324,000.00 | No. of parts | 940,000 | $ 4.60 |
| Machining | $ 7,304,000.00 | Machine hours | 880,000 | $ 8.30 |
| Testing | $ 252,000.00 | No. of test | 300 | $ 840.00 |
| Total | $ 14,600,000.00 |
