K-Tyres Corp. produces two types of tires, regular and snow tires. The company uses activity-based...
70.2K
Verified Solution
Link Copied!
Question
Accounting
K-Tyres Corp. produces two types of tires, regular and snow tires. The company uses activity-based costing and has identified two activities and their budgeted costs: Molding RM 75,000 Assembly RM 260,000
Molding is based on mixing hours and assembly is based on machine hours. Information regarding each product is as follows:
Regular tire
Snow tire
Units produced
5,000
2,000
Mixing hours
525
275
Machine hours
1,000
460
Required: A. Calculate the activity rate for molding and assembly.
Round your answer totwo decimal places.
B. Calculate how much total overhead is assigned to each type of tire.
C. Calculate the unit overhead assigned to each type of tire.
D. Assume the company does not use ABC costing. Calculate the plantwide overhead rate, based on machine hours. Round your answer to two decimal places.
E. Calculate the total overhead assigned to each type of tire using the plantwide overhead rate.
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
