50.1K

Verified Solution

Link Copied!

Exercise 9.30 (Algo) Plantwide versus Department Allocation (LO 9-2,3) Trombly Travel Products (TPP) manufactures and selis travel bags and accessories. TTP produces backpacks at its West Street plant. The different backpock models are identified by the primary moterisl used. canvas, nylon, or leathec. The company uses a plantwide. rate based on direct laborhours. The plantwide rate is $5.00 per isbor hour. Al direct labor at TTP is pald $36 per hour. Canvas and nylon backpacks are produced in Deportment 1. Leather backpocks are produced in Department 2. The product costs (per backpock) follow Required: a. Compute the total unit cost of each backpockmodel using the plantwite allocation mothod. b. The machines in Department 1 are older and almost fully depreclated. The equigment in Department 2 was recently updated and the process in Department 2 is more highly outomated. At the request of the manager of Department, o cost analyst at ITP provided the following informetion on overhead costs, machine-hours and direct labor-bours for the two departments Using iaboehours as the depsrtmem aliocation base for Department 1 and mochine-hours as the deportment allocation base for Department 2, compule the allocation rote for each c. Compute the unt cost of each model of backpsck using the departmem allocason rates computed in requirement iol (laborhours in Deportment 1 and machine-hours in Deportment 2 ) Noter Do not round your intermed ile calculations. Complete this question by entering your answers in the tabs below. Compute the total unit cost of each backpack model using the plantwide allocatien method. Note: Do not round your intermedlate calculations. Round your answers to 2 decimal places. Using lobor-hours as the department allocation base for Department 1 and mochine-hours as the department aliocation basat for Degartment 2 , compute the allocabon rate for esch. Note: Round ysur ahswers to ? decimal places Complete this question by entering your answers in the tabs below. Compute the urit cost of each modn of backpack using the departmeot allocation rates computed in reculrement (o) (iabor: hours in Department 1 and machine-hours in Department 2). Note 00 not round your intermediate calculations. Round your answers to 2 decimal places

Answer & Explanation Solved by verified expert

See Answer