TCO 4 Toshi Company incurred the following costs in manufacturing

TCO 4) Toshi Company incurred the following costs in manufacturing desk calculators.

Direct materials $14

Indirect materials (variable) 4

Direct labor 8

Indirect labor (variable) 6

Other variable factory overhead 10

Fixed factory overhead 28

Variable selling expenses 20

Fixed selling expenses 14

During the period, the company produced and sold 1,000 units.

a. What is the inventory cost per unit using absorption costing?

b. What is the inventory cost per unit using variable costing? (Points : 30)

5. (TCO 8) Musical Instruments Company manufactures two products (trumpets and trombones). Overhead costs ($175,000) have been divided into three cost pools that use the following activity drivers.

Product

Number of setups

Machine hours

Packing orders

Trumpets

50

1,500

150

Trombones

50

4,500

250

Cost per pool

$60,000

$90,000

$25,000

Required (show all calculations)

a. What is the allocation rate for trumpets per setup using activity-based costing?

b. What is the allocation rate for trumpets per machine hours using activity-based costing?

c. What is the allocation rate for trumpets per packing order using activity-based costing?

(Points : 30)

6. (TCO 5) The Baxter Corporation has the following budgeted and actual results.

Budgeted data Actual results

Unit sales 25,000 Unit sales 26,000

Unit production 25,000 Unit production 26,500

Fixed overhead Fixed overhead

Supervision $20,000 Supervision $19,000

Depreciation $25,000 Depreciation $25,000

Rent $12,500 Rent $12,500

Variable costs per unit Variable costs

Direct materials $20.00 Direct materials $530,000

Direct labor $25.00 Direct labor $640,000

Supplies $0.25 Supplies $6,100

Indirect labor $1.25 Indirect labor $30,000

Electricity $0.15 Electricity $4,000

Required:

Prepare a performance report for all costs, showing static budget variances (indicate F or U).