Silven Company has identified the following overhead activities, costs, and activity drivers for the coming year: Activity Expected Cost Activity Driver Activity Capacity Setting up equipment $129,000 Number of setups 120 Ordering materials 27,600 Number of orders 1,200 Machining 113,400 Machine hours 9,450 Receiving 28,080 Receiving hours 1,170 Silven produces two models of cell phones with the following expected activity

Sep 8, 2023

Silven Company has identified the following overhead activities, costs, and activity drivers for the coming year:

Activity Expected Cost           Activity Driver Activity Capacity
Setting up equipment $129,000           Number of setups   120  
Ordering materials 27,600           Number of orders   1,200  
Machining 113,400           Machine hours   9,450  
Receiving 28,080           Receiving hours   1,170  

Silven produces two models of cell phones with the following expected activity demands:

Don't use plagiarized sources. Get Your Custom Essay on
Silven Company has identified the following overhead activities, costs, and activity drivers for the coming year: Activity Expected Cost Activity Driver Activity Capacity Setting up equipment $129,000 Number of setups 120 Ordering materials 27,600 Number of orders 1,200 Machining 113,400 Machine hours 9,450 Receiving 28,080 Receiving hours 1,170 Silven produces two models of cell phones with the following expected activity
Just from $13/Page
Order Essay
        Model X       Model Y
Units completed   5,400     10,800
Number of setups   80     40
Number of orders   400     800
Machine hours   5,400     4,050
Receiving hours   390     780

Required:

1. Determine the total overhead assigned to each product using the four activity drivers.

  Total Overhead Assigned
Model X  
Model Y  

2. Determine the total overhead assigned to each model using the two most expensive activities. The costs of the two relatively inexpensive activities are allocated to the two expensive activities in proportion to their costs. Round interim calculations to two decimal places and round your final answers to the nearest dollar.

  Total Overhead Assigned
Model X  
Model Y  

3. Using ABC as the benchmark, calculate the percentage error. Round your answers to two decimal places.

 

  Percentage Error
Model X

 

Model Y

 

Recent Posts