E16-10 Overton Company has gathered the following information.

Units in beginning work in process 20,000

Units started into production 164,000
Units in ending work in process 24,000

Percent complete in ending work in process:

Conversion costs 60%
Materials 100%

Costs incurred:
Direct materials $101,200
Direct labor $164,800
Overhead $184,000

Instructions

(a) Compute equivalent units of production for materials and for conversion costs.

(b) Determine the unit costs of production.

(c) Show the assignment of costs to units transferred out and in process.

Unit di awal bekerja dalam proses 20.000

Unit mulai berproduksi. 164.000
Unit dalam mengakhiri bekerja dalam proses 24.000

Persen komplit dalam mengakhiri bekerja dalam proses:

Konversi biaya 60%
Bahan 100%

Biaya yang timbul:

Langsung bahan $101,200
Langsung kerja $164,800
Overhead $184,000

Petunjuk
() menghitung setara unit produksi bahan dan biaya konversi.
(b) menentukan biaya unit produksi.
(c) menunjukkan penetapan biaya unit ditransfer keluar dan dalam proses.

E17-1 Wilkins Inc. has two types of handbags: standard and custom. The controller has
decided to use a plantwide overhead rate based on direct labor costs. The president has
heard of activity-based costing and wants to see how the results would differ if this system
were used. Two activity cost pools were developed: machining and machine setup. Presented
below is information related to the company’s operations.
Standard Custom
Direct labor costs $50,000 $100,000
Machine hours 1,000 1,000
Setup hours 100 400

Total estimated overhead costs are $270,000. Overhead cost allocated to the machining
activity cost pool is $170,000, and $100,000 is allocated to the machine setup activity cost
pool.

Instructions
(a) Compute the overhead rate using the traditional (plantwide) approach.
(b) Compute the overhead rates using the activity-based costing approach.
(c) Determine the difference in allocation between the two approaches.