80.2K

Verified Solution

Link Copied!

Whitestone Company produces two subassemblies, JR-14 and RM-13, used in manufacturing trucks. The company 1s currently using an absorption costing system that applies overhead based on direct-labor hours. The budget for the current year ending December 31 , 20xi, is as follows: -Total manufacturing overhead (applied on the basis of direct-labor hours): Robinson Coates, Whitestone's president, has been reading about a product-costing method called actlvity-based costing. Coates is convinced that actlilty-based costing will cast a new light on future profits. As a result, Brlanna Walters, Whitestone's director of cost management, has accumulated cost pool information for this year shown on the following chart. This Information is based on a product mlx of 5,000 unlts of JR-14 and 5,000 unlts of RM-13. In addition, the following Information is projected for the next calendar year, 202. On January 1, 20x2, Whitestone Is planning to Increase the prices of JR-14 to $355 and RM-13 to $455. Materlal costs are not expected to Increase In 202 but direct labor will increase by 8 percent, and all manufacturing overhead costs will increase by 6 percent. Due to the nature of the manufacturing process, the company does not have any beglinning or ending work-In-process Inventorles. Whitestone uses a Just-In-time Inventory system and has materlals dellvered to the production faclity directly from the vendors. The raw-materlal Inventory at both the beginning and the end of the month is immaterlal and can be ignored for the purposes of a budgeted Income statement. The company uses the first-In, first-out (FIFO) Inventory method. Required: 2. Using actlvity-based costing. calculate the total cost in 202 for the following actlvity cost pools: machining, assembly, materlal handling. and Inspection. Then, calculate the pool rate per unit of the approprlate cost driver for each of the four actlvitles. 3. Prepare a table showing for each product line the estimated 202 cost for each of the following cost elements: direct materlal, direct labor, machining. assembly, materlal handling. and Inspection. 4. Prepare a budgeted statement showing the gross margin for Whitestone Company for 202, using actlvity-based costlng. 2. Using actlvity-based costing. calculate the total cost In 202 for the following actlvity cost pools: machining, assembly, materlal handling. and inspection. Then, calculate the pool rate per unlt of the approprlate cost drlver for each of the four actlvitles. 3. Prepare a table showing for each product IIne the estimated 202 cost for each of the following cost elements: direct materlal, direct labor, machining. assembly, materlal handling. and inspectlon. 4. Prepare a budgeted statement showing the gross margin for Whitestone Company for 202, using actlvity-based costing. (x) Answer is not complete. Complete this question by entering your answers in the tabs below. Prepare a table showing for each product line the estimated 202 cost for each of the following cost elements: direct material, direct labor, machining, assembly, material handling, and inspection. Note: Round pool rates to 2 decimal places and other intermediate values to the nearest whole dollar: to Increase In 202 but direct labor will Increase by 8 percent, and all manufacturing overhead costs will increase by 6 percent. Due to the nature of the manufacturing process, the company does not have any beginning or ending work-In-process Inventorles. Whitestone uses a Just-In-tlme Inventory system and has materlals dellvered to the production faclity directly from the vendors. The raw-materlal Inventory at both the beginning and the end of the month is Immaterlal and can be ignored for the purposes of a budgeted Income statement. The company uses the first-In, first-out (FIFO) Inventory method. Required: 2. Using actlvity-based costing, calculate the total cost In 202 for the following actlvity cost pools: machining, assembly, materlal handling, and inspection. Then, calculate the pool rate per unlt of the approprlate cost drlver for each of the four actlvitles. 3. Prepare a table showing for each product IIne the estimated 202 cost for each of the following cost elements: direct materlal, direct labor, machining. assembly, materlal handling, and inspection. 4. Prepare a budgeted statement showing the gross margin for Whitestone Company for 20x2, using actlvity-based costung. Answer is not complete. Complete this question by entering your answers in the tabs below. Prepare a budgeted statement showing the gross margin for Whitestone Company for 202, using activity-based costing. Note: Round your answers to the nearest dollar amount. Required: 2. Using activity-based costing, calculate the total cost In 202 for the following activity cost pools: machining, assembly, materlal handling. and inspection. Then, calculate the pool rate per unlt of the approprlate cost drlver for each of the four actlvitues. 3. Prepare a table showing for each product line the estimated 202 cost for each of the following cost elements: direct materlal, direct labor, machining. assembly, materlal handling. and inspection. 4. Prepare a budgeted statement showing the gross margin for Whitestone Company for 20x2, using actlvity-based costing. Answer is not complete. Complete this question by entering your answers in the tabs below. Using activity-based costing, calculate the total cost in 202 for the following activity cost pools: machining, assembly, material handling, and inspection. Then, calculate the pool rate per unit of the appropriate cost driver for each of the four activities. Note: Round your total cost answers to the nearest whole dollar. Round pool rates to 2 decimal places. Whitestone Company produces two subassemblies, JR-14 and RM-13, used in manufacturing trucks. The company 1s currently using an absorption costing system that applies overhead based on direct-labor hours. The budget for the current year ending December 31 , 20xi, is as follows: -Total manufacturing overhead (applied on the basis of direct-labor hours): Robinson Coates, Whitestone's president, has been reading about a product-costing method called actlvity-based costing. Coates is convinced that actlilty-based costing will cast a new light on future profits. As a result, Brlanna Walters, Whitestone's director of cost management, has accumulated cost pool information for this year shown on the following chart. This Information is based on a product mlx of 5,000 unlts of JR-14 and 5,000 unlts of RM-13. In addition, the following Information is projected for the next calendar year, 202. On January 1, 20x2, Whitestone Is planning to Increase the prices of JR-14 to $355 and RM-13 to $455. Materlal costs are not expected to Increase In 202 but direct labor will increase by 8 percent, and all manufacturing overhead costs will increase by 6 percent. Due to the nature of the manufacturing process, the company does not have any beglinning or ending work-In-process Inventorles. Whitestone uses a Just-In-time Inventory system and has materlals dellvered to the production faclity directly from the vendors. The raw-materlal Inventory at both the beginning and the end of the month is immaterlal and can be ignored for the purposes of a budgeted Income statement. The company uses the first-In, first-out (FIFO) Inventory method. Required: 2. Using actlvity-based costing. calculate the total cost in 202 for the following actlvity cost pools: machining, assembly, materlal handling. and Inspection. Then, calculate the pool rate per unit of the approprlate cost driver for each of the four actlvitles. 3. Prepare a table showing for each product line the estimated 202 cost for each of the following cost elements: direct materlal, direct labor, machining. assembly, materlal handling. and Inspection. 4. Prepare a budgeted statement showing the gross margin for Whitestone Company for 202, using actlvity-based costlng. 2. Using actlvity-based costing. calculate the total cost In 202 for the following actlvity cost pools: machining, assembly, materlal handling. and inspection. Then, calculate the pool rate per unlt of the approprlate cost drlver for each of the four actlvitles. 3. Prepare a table showing for each product IIne the estimated 202 cost for each of the following cost elements: direct materlal, direct labor, machining. assembly, materlal handling. and inspectlon. 4. Prepare a budgeted statement showing the gross margin for Whitestone Company for 202, using actlvity-based costing. (x) Answer is not complete. Complete this question by entering your answers in the tabs below. Prepare a table showing for each product line the estimated 202 cost for each of the following cost elements: direct material, direct labor, machining, assembly, material handling, and inspection. Note: Round pool rates to 2 decimal places and other intermediate values to the nearest whole dollar: to Increase In 202 but direct labor will Increase by 8 percent, and all manufacturing overhead costs will increase by 6 percent. Due to the nature of the manufacturing process, the company does not have any beginning or ending work-In-process Inventorles. Whitestone uses a Just-In-tlme Inventory system and has materlals dellvered to the production faclity directly from the vendors. The raw-materlal Inventory at both the beginning and the end of the month is Immaterlal and can be ignored for the purposes of a budgeted Income statement. The company uses the first-In, first-out (FIFO) Inventory method. Required: 2. Using actlvity-based costing, calculate the total cost In 202 for the following actlvity cost pools: machining, assembly, materlal handling, and inspection. Then, calculate the pool rate per unlt of the approprlate cost drlver for each of the four actlvitles. 3. Prepare a table showing for each product IIne the estimated 202 cost for each of the following cost elements: direct materlal, direct labor, machining. assembly, materlal handling, and inspection. 4. Prepare a budgeted statement showing the gross margin for Whitestone Company for 20x2, using actlvity-based costung. Answer is not complete. Complete this question by entering your answers in the tabs below. Prepare a budgeted statement showing the gross margin for Whitestone Company for 202, using activity-based costing. Note: Round your answers to the nearest dollar amount. Required: 2. Using activity-based costing, calculate the total cost In 202 for the following activity cost pools: machining, assembly, materlal handling. and inspection. Then, calculate the pool rate per unlt of the approprlate cost drlver for each of the four actlvitues. 3. Prepare a table showing for each product line the estimated 202 cost for each of the following cost elements: direct materlal, direct labor, machining. assembly, materlal handling. and inspection. 4. Prepare a budgeted statement showing the gross margin for Whitestone Company for 20x2, using actlvity-based costing. Answer is not complete. Complete this question by entering your answers in the tabs below. Using activity-based costing, calculate the total cost in 202 for the following activity cost pools: machining, assembly, material handling, and inspection. Then, calculate the pool rate per unit of the appropriate cost driver for each of the four activities. Note: Round your total cost answers to the nearest whole dollar. Round pool rates to 2 decimal places

Answer & Explanation Solved by verified expert

See Answer