MY ANSWERS ARE INCORRECT PLEASE HELP Multiple Cost DriversScottsdale Ltd. manufactures a variety of high-volume andlow-volume products to customer demand. Presented is information on2013 manufacturing overhead and activity cost drivers. Level TotalCost Units of Cost Driver Unit $ 500,000 10,000 machine hours Batch100,000 500 customer orders Product 200,000 25 products Product X1required 2,000 machine hours to fill 10 customer orders for a totalof 8,000 units. (a) Assuming all manufacturing overhead isestimated and predicted on the basis of machine hours, determinethe predicted total overhead costs to produce the 8,000 units ofproduct X1. $Answer 8,000 (b) Assuming manufacturing overhead isestimated and predicted using separate rates for machine hours,customer orders, and products (a multiple-level cost hierarchy),determine the predicted total overhead costs to produce the 8,000units of product X1. $Answer 8,000 (c) Calculate the error inpredicting manufacturing overhead using machine hours versus usingmultiple cost drivers. Indicate whether the use of only machinehours results in overpredicting or underpredicting the costs toproduce 8,000 units of product X1. $Answer 8,000 Answer (d)Determine the error in the prediction of X1 batch-level costsresulting from the use of only machine hours. Indicate whether theuse of only machine hours results in overpredicting orunderpredicting the batch-level costs of product X1. $Answer 18,000Answer (e) Determine the error in the prediction of X1product-level costs resulting from the use of only machine hours.Indicate whether the use of only machine hours results inoverpredicting or underpredicting the product-level costs ofproduct X1. $Answer 32,000 Answer
MY ANSWERS ARE INCORRECT PLEASE HELP Multiple Cost DriversScottsdale Ltd. manufactures a variety of high-volume andlow-volume products to customer demand. Presented is information on2013 manufacturing overhead and activity cost drivers. Level TotalCost Units of Cost Driver Unit $ 500,000 10,000 machine hours Batch100,000 500 customer orders Product 200,000 25 products Product X1required 2,000 machine hours to fill 10 customer orders for a totalof 8,000 units. (a) Assuming all manufacturing overhead isestimated and predicted on the basis of machine hours, determinethe predicted total overhead costs to produce the 8,000 units ofproduct X1. $Answer 8,000 (b) Assuming manufacturing overhead isestimated and predicted using separate rates for machine hours,customer orders, and products (a multiple-level cost hierarchy),determine the predicted total overhead costs to produce the 8,000units of product X1. $Answer 8,000 (c) Calculate the error inpredicting manufacturing overhead using machine hours versus usingmultiple cost drivers. Indicate whether the use of only machinehours results in overpredicting or underpredicting the costs toproduce 8,000 units of product X1. $Answer 8,000 Answer (d)Determine the error in the prediction of X1 batch-level costsresulting from the use of only machine hours. Indicate whether theuse of only machine hours results in overpredicting orunderpredicting the batch-level costs of product X1. $Answer 18,000Answer (e) Determine the error in the prediction of X1product-level costs resulting from the use of only machine hours.Indicate whether the use of only machine hours results inoverpredicting or underpredicting the product-level costs ofproduct X1. $Answer 32,000 Answer
Related questions
Lettuce Serve manufactures a variety of specialty salad dressings. Production runs are both high-volume and low-volume activities, depending on customer orders. Presented is Lettuce Serve's 2017 general manufacturing costs (manufacturing overhead) and each cost's related activity cost driver.
| Level | Total Cost | Units of Cost Driver | |
|---|---|---|---|
| Unit | $ 500,000 | 10,000 machine hours | |
| Batch | 50,000 | 500 customer orders | |
| Product | 100,000 | 25 products |
Their cranberry vinaigrette dressing required 3,000 machine hours to fill 10 customer orders for a total of 8,000 units.
(a) Assuming all manufacturing overhead is estimated and predicted on the basis of machine hours, determine the predicted total overhead costs to produce the 8,000 units of cranberry vinaigrette.
$Answer
(b) Assuming manufacturing overhead is estimated and predicted using separate rates for machine hours, customer orders, and products (a multiple-level cost hierarchy), determine the predicted total overhead costs to produce the 8,000 units of cranberry vinaigrette.
$Answer
(c) Calculate the error in predicting manufacturing overhead using machine hours versus using multiple cost drivers. Indicate whether the use of only machine hours results in overpredicting or underpredicting the costs to produce 8,000 units of cranberry vinaigrette.
$Answer
AnswerOver-predictionUnder-prediction
(d) Determine the error in the prediction of cranberry vinaigrette batch-level costs resulting from the use of only machine hours. Indicate whether the use of only machine hours results in overpredicting or underpredicting the batch-level costs of cranberry vinaigrette.
$Answer
AnswerOver-predictionUnder-prediction
(e) Determine the error in the prediction of cranberry vinaigrette product-level costs resulting from the use of only machine hours. Indicate whether the use of only machine hours results in overpredicting or underpredicting the product-level costs of cranberry vinaigrette.
$Answer
Answer
The following data are for the two products produced by Tadros Company.
| Product A | Product B | ||||
| Direct materials | $ | 14 per unit | $ | 24 per unit | |
| Direct labor hours | 0.6 DLH per unit | 1.5 DLH per unit | |||
| Machine hours | 0.5 MH per unit | 1.1 MH per unit | |||
| Batches | 125 batches | 250 batches | |||
| Volume | 10,000 units | 2,000 units | |||
| Engineering modifications | 10 modifications | 50 modifications | |||
| Number of customers | 500 customers | 400 customers | |||
| Market price | $ | 34 per unit | $ | 95 per unit per unit | |
The company's direct labor rate is $20 per direct labor hour (DLH). Additional information follows.
| Costs | Driver | |||
| Indirect manufacturing | ||||
| Engineering support | $ | 22,500 | Engineering modifications | |
| Electricity | 28,800 | Machine hours | ||
| Setup costs | 41,000 | Batches | ||
| Nonmanufacturing | ||||
| Customer service | 74,000 | Number of customers | ||
Required:
(Round your per unit cost answers to 2 decimal places and other answers to nearest whole number. Loss amounts should be indicated with minus sign.)
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5. Which method of product costing gives better information to managers of this company?
Departmental overhead rate method
Activity-based costing method
Plantwide overhead rate method
