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Social Science Clinic => Accounting => Topic started by: newbem on Jan 4, 2020

Title: Red Stone Manufacturing, a manufacturer of a variety of products, uses an activity-based costing ...
Post by: newbem on Jan 4, 2020

Red Stone Manufacturing, a manufacturer of a variety of products, uses an activity-based costing system. Information from its system for the year for all products follows:



Red Stone Manufacturing makes 400 of its product B34 a year, which requires a total of 52 machine hours, 15 inspection hours, and 20 orders. Product B34 requires $75.50 in direct materials per unit and $68.80 in direct labour per unit. Product B34 sells for $180 per unit.

Required:

A.	Calculate the cost pool activity rate for each of the three activities.

B.	How much manufacturing overhead would be allocated to Product B34 in total?

C.	What is the product margin in total for Product B34?

Title: Red Stone Manufacturing, a manufacturer of a variety of products, uses an activity-based costing ...
Post by: Jane on Jan 4, 2020

Part C	​	​
Production, in units	400	​
Selling price per unit	$180.00	​
Sales	$72,000	​
​	​	​
Production, in units	400	​
Direct materials cost, per unit	$75.50	​
Direct materials cost	$30,200	​
​	​	​
Production, in units	400	​
Direct labour cost, per unit	$68.80	​
Direct labour cost	$27,520	​
​	​	​
​	​	​
Sales	​	$72,000.00
Costs:	​	​
Direct materials cost	$30,200.00	​
Direct labour cost	$27,520.00	​
Assembly	$956.80	​
Inspection	$573.00	​
Packaging	$430.00	$59,679.80
Product margin	​	$12,320.20

Title: Re: Red Stone Manufacturing, a manufacturer of a variety of products, uses an activity-based costing
Post by: Quynh Nguyen on Oct 21, 2020

thank you

Title: Re: Red Stone Manufacturing, a manufacturer of a variety of products, uses an activity-based costing
Post by: Xu Nick on Oct 21, 2020

thank you

Title: Re: Red Stone Manufacturing, a manufacturer of a variety of products, uses an activity-based costing
Post by: willi Benitez on Feb 22, 2021

thank you