ACT 500 SEU Hamburg Corporation Managerial Accounting Excel Sheet

Complete the following questions using Microsoft Excel. No other submission format is allowed. Review the grading rubric to confirm you are meeting the assignment requirements.

Consider the following information for Hamburg Corporation:

Items                                                                    Units

Beginning inventory                                            85,000

Units started during the year                          155,000

Ending inventory                                                  61,000

Inventory is 100% complete as to materials and 60% complete as to conversion.

Items                                                             Materials              Conversion

Beginning costs (SAR)                                    425,000              686,000

Costs added during the period (SAR)       1,255,000                980,000

Using the WEIGHTED AVERAGE method:

Calculate the number of units completed during the period.

Calculate equivalent units for conversion during the period.

Calculate cost per equivalent units for materials.

Mannheim Corporation manufactures small camping tents and family camping tents. The estimated direct labor time to produce each type of tent is as follows:

Items                                                         Small                                  Family

Estimated tents produced                     24,500                                11,000

Direct labor hours per tent                        2.5                                    4.5

Estimated overhead for the period = 1,300,000 SAR.

Compute the overhead cost assigned to each type of tent assuming direct labor hours are used to allocate overhead costs.

The controller is not satisfied with the traditional method of allocating overhead because he believes that most of the overhead costs relate to the family tent product line because of its complexity. He, therefore, developed the following three activity cost pools and related cost drivers to better understand the costs.

Activity Cost Pools                                 Expected Use of Cost Drivers                    Estimated Overhead Costs (SAR)

Setting up machines                                 1,000 setups                                                                25,000

Assembling                                               90,000 labor hours                                                       980,000

Inspection                                                1,200 inspections                                                            230,000

Calculate the activity-based overhead rates for these three cost pools.

Compute the cost that is assigned to each tent using activity-based costing system, given the following information.

Expected Use of Cost Drivers per Product

Items                                                 Small                                          Family

Number of setups                                130                                            825

Direct labor hours                            29,000                                       55,000

Number of inspections                       125                                       1,125

What do you believe the controller should do and why?