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The document provides budgeted cost information for Tarquin's Trophies, which produces trophies, plaques, and medallions. It lists direct material and labor costs by product for each production department. Total overhead costs and the allocation bases are also provided for each department. The controller has asked to calculate unit costs using plantwide, departmental, and activity-based overhead allocation methods in order to compare the different costing approaches.

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Waseem Mughal
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463 views

WSM

The document provides budgeted cost information for Tarquin's Trophies, which produces trophies, plaques, and medallions. It lists direct material and labor costs by product for each production department. Total overhead costs and the allocation bases are also provided for each department. The controller has asked to calculate unit costs using plantwide, departmental, and activity-based overhead allocation methods in order to compare the different costing approaches.

Uploaded by

Waseem Mughal
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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5.31 Tarquin's Trophies makes trophies, plaques, and medallions and operates at capacity.

Tarquin does large custom The Controller has asked you to compare plantwide, department, and activity-based cost allocation. Tarquin's Trophies Budgeted Information per Unit For the Year ended 30 November 2009 Forming Department Trophies Direct materials $2.50 Direct labor $3.00 $5.50 Assembly Department Direct materials Direct labor Trophies $0.50 $1.50 $2.00 Trophies $0.75 $0.75 $1.50 5,200

Plaques $1.50 $1.20 $2.70 Plaques $1.25 $1.50 $2.75 Plaques $0.50 $0.25 $0.75 7,500

Packaging Department Direct materials Direct labor

Number of units produced The overhead cost for each department is: Forming Department Materials handling Quality inspection Untilities

$5,700 $6,300 $10,386 $22,386

Assmebly Department Materials handling Quality inspection Untilities

$9,200 $13,800 $10,960 $33,960

Packaging Department Materials handling Quality inspection Untilities

$18,315 $14,985 $8,934 $42,234

Other information: Materials handling and quality inspection costs vary with the number of batches processed in each department. T

Forming Dept Assembly Dept Packaging Dept

Trophies 116 63 80

Plaques 40 83 100

Utilities costs vary with direct labor costs in each department.

1 Calculate the cost per unit of Trophies, Plaques and Medallions based on a single plantwide overhead rate, if total 2 Calculate the cost per unit of Trophies, Plaques and Medallions based on departmental overhead rates, where for allocated based on direct labor costs of the forming department, assembly department overhead costs are allocat department and packaging department overhead costs are allocated based on direct materials costs of the packag 3 Calculate the cost per unit of Trophies, Plaques and Medallions if Tarquin allocates overhead costs in each departm 4 Explain how the disaggregation of information could improve or reduce decision quality.

acity. Tarquin does large custom orders, for example the participant trophies for the Mishawaka Little League. ased cost allocation.

Medallions $0.50 $0.60 $1.10 Medallions $0.25 $0.50 $0.75 Medallions $0.10 $0.10 $0.20 16,700

processed in each department. The number of batches for each product line in each department is as follows:

Medallions 44 84 190

e plantwide overhead rate, if total overhead is allocated based on total direct costs. mental overhead rates, where forming department overhead costs are rtment overhead costs are allocated based on total direct costs of the assembly irect materials costs of the packaging department. tes overhead costs in each department using activity-based costing.

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