Need ASAP If you could add formulas that would be great Weas
Need ASAP. If you could add formulas, that would be great.
Weasley Co. manufactures two models: Nimbus and Firebolt. Production of the Nimbus is 100,000 units and production of the Firebolt is 10,000 units.
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?
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
VALUE OR NON-VALUE?
Consulting clients?
Staff meetings?
Onsite supervisor?
Handing out meals at work?
Entertaining perspective clients?
Provides training to clients employees?
Solution
Solution a:
Plantwide overhead rate = Total budgeted overhead cost / Budgeted direct labor hours
= $14,600,000 / 1000000 = $14.60 per direct labor hour
Solution b:
Total overhead for numbus = Direct labor hours of Nimbus * Plantwide overhead rate per direct labor hour
= 800000 * $14.60 = $11,680,000
Solution c:
Total overhead for firebolt = Direct labor hours of Firebolt * Plantwide overhead rate per direct labor hour
= 200000 * $14.60 = $2,920,000
Solution d:
Overhead Per unit for Nimbus = Overhead cost of Nimbus / Nos of units of nimbus = $11,680,000 / 100000 = $116.80 per unit
Solution e:
Overhead per unit for Firebolt = Overhead cost of Firebolt / Nos of units of Firebolt = $2,920,000/ 10000 = $292 per unit
Note: I have answered more than required parts as per chegg policy, kindly post separate question for answer of remaining parts.

