Req1ANSSingle Plantwide Rate1.a Calculate the predetermined overhead allocation rate.Nerdzy Computer Company wants to analyze the costs in its generic personal computer mass production...




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Req1ANS Single Plantwide Rate1.a Calculate the predetermined overhead allocation rate. Nerdzy Computer Company wants to analyze the costs in its generic personal computer mass production process. Within its generic segment, Nerdzy manufactures four different computers: Standard Desktop, Standard Laptop, Premium Desktop, Premium Laptop.Predetermined OH allocation Rate14.0000% Tene Greenhood: Tene Greenhood: Total Est MOH / the sum of each product types # of units * DL Cost per unitof DL costs Nerdzy has asked you as an intern to evaluate the different methods for allocating the overhead to the products. Then, you will need to provide management with your recommendation of which method to use in the future. As mentioned in the previous problem, Nerdzy allocates costs based on the % of direct labor costs.1.b Calculate how much Manufacturing overhead should be allocated to each segment and more specifically to each unit within the different segments. Standard DesktopPremium DesktopStandard LaptopPremium LaptopStandard DesktopPremium DesktopStandard LaptopPremium Laptop # of units4,0002,1006,2003,548MOH Cost Per Segment Tene Greenhood: Tene Greenhood: Calculation should be (# of units x DL Cost)x POAR (which you calculated above).57,12042,630110,23665,070 DM cost per unit$ 163$ 212$ 160$ 265MOH Cost Per Unit Tene Greenhood: Tene Greenhood: Calculation is the MOH cost per segment (calculated above) / # of units 14.2820.3017.7818.34 DL cost per unit$ 102$ 145$ 127$ 131 Total est. MOH$ 275,243 1.c Calculate the total manufacturing cost per unit. RequirementsStandard DesktopPremium DesktopStandard LaptopPremium Laptop 1.a Calculate the predetermined overhead allocation rate.Total Cost Per Unit Tene Greenhood: Tene Greenhood: MOH cost per unit (calc above) + DM cost per unit + DL Cost per unit Tene Greenhood: Tene Greenhood: Total Est MOH / the sum of each product types # of units * DL Cost per unit279.28377.30304.78414.34 1.b Calculate how much Manufacturing overhead should be allocated to each segment and more specifically to each unit within the different segments. 1.c Calculate the total manufacturing cost per unit. **Hints: you will need to calculate total DL costs to determine the predetermined OH allocation rate. Req2ANS Multiple Department Rates Nerdzy would also like you to allocate the costs using the multiple departments method.2.a Calculate the predetermined overhead allocation rate for each department. You have been provided the additional information specific to each department.OH All Rate Internal Assembly Tene Greenhood: Tene Greenhood: Total est MOH costs for internal assembly / the sum of all of the machine hours for internal assembly2.26perMachine Hr Est. MOHAllocation BaseExternal Assembly5.61 Tene Greenhood: Tene Greenhood: total est MOH costs for external assembly / the sum of all of the DL hours for external assemblyperDL Hour Internal Assembly103,847Machine HoursTesting1.24% Tene Greenhood: Tene Greenhood: Total est MOH costs for testing / the sum of all of the DL costs per unit * the number of units ofDL Costs External Assembly68,734Labor HoursPackaging Tene Greenhood: Tene Greenhood: total est MOH costs for packaging / the sum of all of the machine hours for packaging9.30perMachine Hr Testing14,585Labor Costs Packaging88,077Machine Hours Cost Driver Data per department & product2.b Allocate overhead costs to each product within each department. Standard DesktopPremium DesktopStandard LaptopPremium LaptopStandard DesktopPremium DesktopStandard LaptopPremium Laptop Internal Assembly9,0462,15519,24815,433Machine HoursInternal Assembly Tene Greenhood: Tene Greenhood: OHAR from 2.a x internal assembly machine hours20,443.964,870.3043,500.4834,878.58 External Assembly3,4861,8454,8122,111Labor HoursExternal Assembly Tene Greenhood: Tene Greenhood: OHAR from 2.a x external assembly DL hours19,556.4610,350.4526,995.3211,842.71 Testing$ 61$ 87$ 76$ 79DL Costs per unitTesting Tene Greenhood: Tene Greenhood: OHAR from 2.a x testing DL cost per unit x # of units produced3,035.522,265.485,858.263,458.02 Packaging1,8679123,5803,115Machine HoursPackaging Tene Greenhood: Tene Greenhood: OHAR from 2.a x packaging # of batches17,363.108,481.6033,294.0028,969.50 # of Units Produced4000210062003548 2.c Calculate the manufacturing overhead cost per unit per department. RequirementsStandard DesktopPremium DesktopStandard LaptopPremium Laptop 2.a Calculate the predetermined overhead allocation rate for each department.MOH Cost Per Unit Tene Greenhood: Tene Greenhood: Sum of the MOH costs for the product / the # of units of that product15.1012.3717.6922.31 2.b Allocate overhead costs to each product within each department. 2.c Calculate the manufacturing overhead cost per unit per department. 2.d Determine the total cost per unit per product.2.d Determine the total cost per unit per product. 2.e Compare the total estimated costs per unit under each calculation method and determine which method you would recommend to management and why.Standard DesktopPremium DesktopStandard LaptopPremium Laptop Total Cost Per Unit Tene Greenhood: Tene Greenhood: MOH cost per unit (above) + DL cost per unit + DM cost per unit (DM & DL are provided in Req1) Tene Greenhood: Tene Greenhood: OHAR from 2.a x internal assembly machine hours Tene Greenhood: Tene Greenhood: OHAR from 2.a x external assembly DL hours Tene Greenhood: Tene Greenhood: OHAR from 2.a x testing DL cost per unit x # of units produced Tene Greenhood: Tene Greenhood: OHAR from 2.a x packaging # of batches Tene Greenhood: Tene Greenhood: Total est MOH costs for internal assembly / the sum of all of the machine hours for internal assembly Tene Greenhood: Tene Greenhood: total est MOH costs for external assembly / the sum of all of the DL hours for external assembly Tene Greenhood: Tene Greenhood: total est MOH costs for packaging / the sum of all of the machine hours for packaging Tene Greenhood: Tene Greenhood: Sum of the MOH costs for the product / the # of units of that product Tene Greenhood: Tene Greenhood: Total est MOH costs for testing / the sum of all of the DL costs per unit * the number of units 280.10369.37304.69418.31 2.e Compare the total estimated costs per unit under each calculation method and determine which method you would recommend to management and why. Standard DesktopPremium DesktopStandard LaptopPremium Laptop Single Rate Cost per unit- 0- 0- 0- 0 Multiple Rate Cost per unit280.10369.37304.69418.31 Difference280.10369.37304.69418.31 Method Recommended to Management: Multiple Dept Rate Req3ANS 3.a Compute the predetermined overhead allocation rate (POAR) for each activity: Setup Tene Greenhood: Tene Greenhood: Total est MOH costs for setup / total # of batches for setup92.52perBatch Production Tene Greenhood: Tene Greenhood: Total est MOH costs for production / total # of machine hours for production0.82perMachine Hr Testing Tene Greenhood: Tene Greenhood: Total est MOH costs for testing / total # of tests534.45perTest Packaging Tene Greenhood: Tene Greenhood: Total est MOH costs for packaging / total # of batches for packaging204.97perBatch Allocation BaseEstimated MOH Costs Setup# of batches22019.443.b Allocate overhead costs to the different products based on the activites required. ProductionMachine Hrs159640.94 Testing# of Tests55048.6POAR xQty of base=Allocated MOH Packaging# of Batches38534.02Standard Desktop 275243Setup92.52656,013.71 Production0.8282316,749.42 Testing534.452814,964.67 Packaging204.975110,453.38 Total Manufacuring Overhead38,181.18 ActivityAllocation BaseStandard DesktopPremium DesktopStandard LaptopPremium LaptopTotal÷ # of units4000 Setup# of batches65527150238MOH cost per unit9.55 ProductionMachine Hrs8231284418221166455195751 Testing# of Tests28181938103 Packaging# of Batches51672545188POAR xQty of base=Allocated MOH Premium Desktop Setup92.52524,810.97 Production0.8228442,332.08 Testing534.45189,620.14 **Note, the number of units per product item can be found in the previous problem information. You will need this for part b.Packaging204.976713,732.87 Total Manufacuring Overhead30,496.06 ÷ # of units2100 MOH cost per unit14.52 **Note, the DM & DL costs per product can also be found in the previous problem information, which you will need for part c. POAR xQty of base=Allocated MOH Standard Laptop Setup92.52716,568.82 Production0.821822114,941.22 Testing534.451910,154.60 Packaging204.97255,124.20 Total Manufacuring Overhead36,788.85 ÷ # of units6200 MOH cost per unit5.93 POAR xQty of base=Allocated MOH Premium Laptop Setup92.52504,625.93 Production0.82166455136,493.10 Testing534.453820,309.19 Packaging204.97459,223.57 Total Manufacuring Overhead170,651.79 ÷ # of units3548 MOH cost per unit48.10 3.c Calculate the total production cost of each product Standard DesktopPremium DesktopStandard LaptopPremium Laptop Total Cost Per Unit Tene Greenhood: Tene Greenhood: MOH cost per unit (above) + DL cost per unit + DM cost per unit (DM & DL are provided in Req1) Tene Greenhood: Tene Greenhood: Total est MOH costs for setup / total # of batches for setup Tene Greenhood: Tene Greenhood: Total est MOH costs for production / total # of machine hours for production Tene Greenhood: Tene Greenhood: Total est MOH costs for testing / total # of tests Tene Greenhood: Tene Greenhood: Total est MOH costs for packaging / total # of batches for packaging274.55371.52292.93444.10 Data Standard DesktopPremium DesktopStandard LaptopPremium LaptopDL HourSingle Plant RatePrevention Costs # of units4000210062003548Machine HrMultiple Dept RateAppraisal Costs DM cost per unit163212160265DL CostsInternal Failure Costs DL cost per unit102145127131Machine CostsExternal Failure Costs Total est. MOH275243Batch Test Est. MOHAllocation BaseStandard DesktopPremium DesktopStandard LaptopPremium LaptopTotal Internal Assembly103847Machine Hours90462155192481543345882 External Assembly68734Labor Hours348618454812211112254 Testing14585Labor Costs61.28776.278.6303 Packaging88077Machine Hours1867912358031159474 275243 0 ActivityAllocation BaseStandard DesktopPremium DesktopStandard LaptopPremium LaptopEstimated MOH CostsTotal Setup# of batches6552715022019.44238 ProductionMachine Hrs8231284418221166455159640.94195751 Testing# of Tests2818193855048.6103 Packaging# of Batches5167254538534.02188 275243 Req4ANS Quality Management Systems Label each description of cost as the type of quality cost that most closely aligns to it. 1Warranty costsExternal Failure Costs 2Employee trainingPrevention Costs 3Service costs at customer sitesExternal Failure Costs 4Product testingAppraisal Costs 5Inspection of final products or servicesAppraisal Costs 6Rejected productsInternal Failure Costs 7Preventive maintenance on equipmentPrevention Costs 8Sales returns due to product defectsExternal Failure Costs 9Reworking products that didn't meet standardsInternal Failure Costs 10Evaluation of the quality of suppliersPrevention Costs 11Inspection at various stages of productionAppraisal Costs 12Lost profits due to unhappy customersExternal Failure Costs Tene Greenhood: Tene Greenhood: See page 1054 for defintiions on types of quality costs. Directions Critical Thinking 3- Cost Management Systems **Before you begin, save this file to your computer named as Last Name, First Name CTA3 This is a continuing problem based on Nerdzy Computer Company that you were introduced to in CTA 1. Nerdzy Computer Company wants to analyze the costs in its generic personal computer mass production process. Within its generic segment, Nerdzy manufactures four different computers: Standard Desktop, Standard Laptop, Premium Desktop, Premium Laptop. Nerdzy has asked you as an intern to evaluate the different methods for allocating the overhead to the products. Then, you will need to provide management with your recommendation of which method to use in the future. As mentioned in the previous problem, Nerdzy allocates costs based on the % of direct labor costs. Req 1. Single Plantwide Rate 1.a Calculate the predetermined overhead allocation rate. 1.b Calculate how much Manufacturing overhead should be allocated to each segment and more specifically to each unit within the different segments. 1.c Calculate the total manufacturing cost per unit. Req 2. Multiple Department Nerdzy would also like you to allocate the costs using the multiple departments method. 2.a Calculate the predetermined overhead allocation rate for each department. 2.b Allocate overhead costs to each product within that department. 2.c Calculate the manufacturing overhead cost per unit per department. 2.d Determine the total cost per unit per product. 2.e Compare the total estimated costs per unit under each calculation method and determine which method you would recommend to management and why. Req 3. Activity Based Nerdzy has also considered restructuring the manufacturing plant to produce batches of products to increase efficiency. They would like you to analyze what the impact would be on the cost of each product if they switch to an activity-based production and accounting method. 3.a Compute the predetermined overhead allocation rate (POAR) for each activity. 3.b Allocate overhead costs to the different products based on the activities required. 3.c Calculate the total production cost of each product. Req 4. Quality Management Systems Nerdzy has organized different costs associated with quality management. It has generally defined the types of costs but would like you to identify the type of quality cost that it represents. 4.a Label each description of cost as the type of quality cost that most closely aligns to it. Special Notes: 1. Only enter answers in blue shaded cells. 2. If a cell does not have an answer, leave it blank. 3. I tried to set the pages up so that they would print nicely on whole sheets of paper. If you would like to, print the file and complete it by hand and then transfer your answers to the electronic file. 4. Save your work often. 5. When you are done with the assignment, upload the completed file into the associated BB assignment area. Req1 Single Plantwide Rate1.a Calculate the predetermined overhead allocation rate. Nerdzy Computer Company wants to analyze the costs in its generic personal computer mass production process. Within its generic segment, Nerdzy manufactures four different computers: Standard Desktop, Standard Laptop, Premium Desktop, Premium Laptop.Predetermined OH allocation Rateof DL costs Nerdzy has asked you as an intern to evaluate the different methods for allocating the overhead to the products. Then, you will need to provide management with your recommendation of which method to use in the future. As mentioned in the previous problem, Nerdzy allocates costs based on the % of direct labor costs.1.b Calculate how much Manufacturing overhead should be allocated to each segment and more specifically to each unit within the different segments. Standard DesktopPremium DesktopStandard LaptopPremium LaptopStandard DesktopPremium DesktopStandard LaptopPremium Laptop # of units4,0002,1006,2003,548MOH Cost Per Segment DM cost per unit$ 163$ 212$ 160$ 265MOH Cost Per Unit DL cost per unit$ 102$ 145$
Dec 01, 2022
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