Assigning activity-based costs in manufacturing, unused capacity, income Halifax Brass Company…


Question Description:

30

Assigning activity-based costs in manufacturing, unused capacity, income Halifax Brass Company… 1 answer below » Assigning activity-based costs in manufacturing, unused capacity, income Halifax Brass Company manufactures pumps and valves and uses a time-driven activity-based cost (TDABC) system. Last year, Halifax recorded the following data for assigning manufacturing overhead costs to its products: View complete question » UNIT COST TOTAL UNIT TIME PRACTICAL CAPACITY ESTIMATES ESTIMATES (HOURS NOT ASSIGNED TO (RATES PER ASSIGNED TO PRODUCTS HOUR) PRODUCTS) (HOURS) PUMPS VALVES Assigning activity-based costs in manufacturing, unused capacity, income Halifax Brass Company manufactures pumps and valves and uses a time-driven activity-based cost (TDABC) system. Last year, Halifax recorded the following data for assigning manufacturing overhead costs to its products: UNIT COST TOTAL UNIT TIME PRACTICAL CAPACITY ESTIMATES ESTIMATES (HOURS NOT ASSIGNED TO (RATES PER ASSIGNED TO PRODUCTS HOUR) PRODUCTS) (HOURS) PUMPS VALVES Machine setups and $20.00 per run time machine hour 1,500 1,800 300 Labor for setups, receiving, $30.00 per labor and packing hour 5,000 6,000 200 Engineering (for specializing $80.00 per products) engineering hour 200 400 50 Halifax also developed the following information on revenues and costs other than manufacturing overhead: Total revenues $890,000 Total direct labor cost $120,000 Total direct materials cost $90,000 SG&A expenses $100,000 Required (a) Using the company’s TDABC system, how much manufacturing overhead cost will be assigned to pumps? How much will be assigned to valves? (b) What is the company’s net income? (Assume the company sells the entire amount of the products it produces.) View less » Jul 24 2014 07:51 AM

Answer

30