00 Meester Corporation has an activity-based costing system with three activity cost pools-Machining, Order Filling, and Other In the first stage allocations, costs in the two overhead accounts, equipment depreciation and supervisory expense, are allocated to three activity cost pools based on resource consumption. Data used in the first stage allocations follow Overhead costs: Equipment depreciation Supervisory expense $ 78,000 $ 2,000 Distribution of Resource Consumption Across Activity Cost Pools Equipment depreciation Supervisory expense Activity Cost Pools Machining Order Filling Other 0.50 0.40 0.40 0.50 0.10 0.10 Machining costs are assigned to products using machine-hours (MHS) and Order Filling costs are assigned to products using the number of orders. The costs in the Other activity cost pool are not assigned to products. Activity data for the company's two products follow Activity MHS (Machining) Orders (Order Filling) Product MO Product H2 1,000 600 9,000 1,400 Total 10,000 2,000 What is the overhead cost assigned to Product H2 under activity-based costing? Note: Round your intermediate calculations to 2 decimal places. O O Multiple Choice $28,980 $5.600 $34,580 $40,000

00 Meester Corporation has an activity-based costing system with three activity cost pools-Machining, Order Filling, and Other In the first stage allocations, costs in the two overhead accounts, equipment depreciation and supervisory expense, are allocated to three activity cost pools based on resource consumption. Data used in the first stage allocations follow Overhead costs: Equipment depreciation Supervisory expense $ 78,000 $ 2,000 Distribution of Resource Consumption Across Activity Cost Pools Equipment depreciation Supervisory expense Activity Cost Pools Machining Order Filling Other 0.50 0.40 0.40 0.50 0.10 0.10 Machining costs are assigned to products using machine-hours (MHS) and Order Filling costs are assigned to products using the number of orders. The costs in the Other activity cost pool are not assigned to products. Activity data for the company's two products follow Activity MHS (Machining) Orders (Order Filling) Product MO Product H2 1,000 600 9,000 1,400 Total 10,000 2,000 What is the overhead cost assigned to Product H2 under activity-based costing? Note: Round your intermediate calculations to 2 decimal places. O O Multiple Choice $28,980 $5.600 $34,580 $40,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

:14 es Howell Corporation's activity-based costing system has three activity cost pools-Machining, Setting Up, and Other. The company's overhead costs, which consist of equipment depreciation and indirect labor, are allocated to the cost pools in proportion to the activity cost pools' consumption of resources. Equipment depreciation (total) Indirect labor (total) Distribution of Resource Consumption Across Activity Cost Pools Setting Up 0.30 0.10 Equipment depreciation Indirect labor Product S4 Product CO Total Costs in the Machining cost pool are assigned to products based on machine-hours (MHS) and costs in the Setting Up cost pool are assigned to products based on the number of batches. Costs in the Other cost pool are not assigned to products. Sales (total) Direct materials (total) Direct labor (total) $ 33,800 $ 7,950 MHS 8,900 6,300 15,200 Required A Machining 0.30 0.30 Additional data concerning the company's products appears below: Product S4 Product Co $ 88,100 $ 75,500 $…
MFCB Ltd uses an activity-based costing system for its overhead costs. The company has provided the following data from its activity-based costing system. Activity Cost Pool Total Cost (RM) Total Activity Cleaning 442,068 78,800 hours Job support 52,801 1,900 jobs Client support 9,170 350 clients Other 110,601 Not applicable Total 614,640 The expenses of idle capacity and organization-sustaining expenditures are included in the 'Other' activity cost pool. One particular client, DNO Ltd, requested 46 jobs during the year that required a total of 92 hours of housecleaning. For this service, the client was charged RM2,230. TASK: Compute the predetermined overhead rate if the company chooses cleaning hours as the allocation base.
Single Plantwide and Multiple Production Department Factory Overhead Rate Methods and Product Cost Distortion The management of Nova Industries Inc. manufactures gasoline and diesel engines through two production departments, Fabrication and Assembly. Management needs accurate product cost information in order to guide product strategy. Presently, the company uses a single plantwide factory overhead rate for allocating factory overhead to the two products. However, management is considering the multiple production department factory overhead rate method. The following factory overhead was budgeted for Nova: $765,000 315,000 $1,080,000 Fabrication Department factory overhead Assembly Department factory overhead Total Direct labor hours were estimated as follows: Fabrication Department Assembly Department Total In addition, the direct labor hours (dlh) used to produce a unit of each product in each department were determined from engineering records, as follows: Production Departments…
Takulah Co. Ltd has traditionally allocated its overhead based on machine hours but had collected this information to change to activity-based costing: ESTIMATED ACTIVITY ACTIVITY CENTER PRODUCT 1 PRODUCT 2 ESTIMATED COST Machine setups 15 45 $10,800 Assembly Parts 3000 3000 144600 Packaging pieces 500 400 55350 Machine hour per unit 4 3 Production volume 750 1500 Required: i) How much overhead would be allocated to each unit under the traditional allocation method? ii) How much overhead would be allocated to each unit under activity-based costing? iii) Would you recommend a change to ABC costing for this company? Justify your answer
Doles Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products. Activity Cost Pools Setting up batches Processing customer orders Assembling products Data concerning two products appear below: Number of batches Number of customer orders Number of assembly hours Total overhead cost Activity Rate $69.22 per batch $26.28 per customer order $ 12.11 per assembly hour Product K52W 65 45 418 Required: How much overhead cost would be assigned to each of the two products using the company's activity-based costing system? (Round your intermediate calculations and final answers to 2 decimal places.) Product K52W Product X94T Product X94T 52 30 161
Doede Corporation uses activity-based costing to compute product margins. In the first stage, the activity-based costing system allocates two overhead accounts--equipment depreciation and supervisory expense--to three activity cost pools--Machining, Order Filling, and Other--based on resource consumption. Data to perform these allocations appear below: Overhead costs: Equipment depreciation $ 91,000 Supervisory expense $ 12,300 Distribution of Resource Consumption Across Activity Cost Pools: Activity Cost Pools Machining Order Filling Other Equipment depreciation 0.60 0.30 0.10 Supervisory expense 0.60 0.20 0.20 In the second stage, Machining costs are assigned to products using machine-hours (MHs) and Order Filling costs are assigned to products using the number of orders. The costs in the Other activity cost pool are not assigned to products. Activity: MHs (Machining) Orders (Order Filling) Product W1 6,050 198 Product M0 21,800 999 Total…
Title Brahtz Company uses an activity-based costing system. It has the following manufacturing activity ar Description Brahtz Company uses an activity-based costing system. It has the following manufacturing activity areas, related cost drivers and cost allocation rates:ActivityCost DriverCost Allocation RateMachine setupNumber of setups$25.00Materials handlingNumber of parts0.25MachiningMachine hours13.00AssemblyDirect labor hours22.00InspectionNumber of finished units7.00During the month, 100 units were produced, with no defects, requiring three setups. Each unit consisted of 17 parts, 3 direct labor hours and 2.5 machine hours. Direct materials cost $50 per finished unit.What is the total manufacturing cost for inspections?$-0-$700$90$7
A Corporation uses activity-based costing to assign overhead costs to products. Overhead costs have already been allocated to the company's three activity cost pools as follows: Machining, $12,100; Order Filling, $16,800; and Other, $13,500. Machining costs are assigned to products using machine-hours (MHs) and Order Filling costs are assigned to products using the number of orders. The costs in the Other activity cost pool are not assigned to products. Activity data appear below:ICO/4243 0 MHS (Machining) 5,800 4,200 Product P17 Product V29 Q. What is the overhead cost assigned to Product P17 under activity-based costing? Answer. (Click to select) (Click to select) None of the answers are correct. $10,122 $12,058 $16,842 $18,778 Orders (Order Filling) 300 700
Kiser Corporation pools--Machining, has an activity-based costing system with three activity cost Order Filling, and Other. In the first stage allocations, costs in the two overhead accounts, equipment depreciation and supervisory expense, are allocated to three activity cost pools based on resource consumption. Data used in the first stage allocations follow: Overhead costs: Equipment depreciation Supervisory expense Equipment depreciation Distribution of Resource Consumption Across Activity Cost Pools: Supervisory expense Product MO Product H2 Total Activity Cost Pools O $60,000 O $800 O $10,400 O $9.600 0.30 Machining Order Filling 0.60 0.10 4,500 $ 96,000 0.10 Machining costs are assigned to products using machine-hours (MHs) and Order Filling costs are assigned to products using the number of orders. The costs in the Other activity cost pool are not assigned to products. Activity data for the company's two products follow: 5,500 $ 8,000 MHS (Machining) 10,000 400 Other 600 0.60…
Meester Corporation has an activity-based costing system with three activity cost pools--Machining, Order Filling, and Other. In the first stage allocations, costs in the two overhead accounts, equipment depreciation and supervisory expense, are allocated to three activity cost pools based on resource consumption. Data used in the first stage allocations follow: Overhead costs: Equipment depreciation $ 79,800 Supervisory expense $ 4,900 Distribution of Resource Consumption Across Activity Cost Pools: Activity Cost Pools Machining Order Filling Other Equipment depreciation 0.40 0.30 0.30 Supervisory expense 0.40 0.20 0.40 Machining costs are assigned to products using machine-hours (MHs) and Order Filling costs are assigned to products using the number of orders. The costs in the Other activity cost pool are not assigned to products. Activity data for the company's two products follow: Activity: MHs (Machining) Orders (Order Filling) Product…
Assume a company's activity-based costing system Includes three activities. The following Information is avallable with respect to those activitles: Estimated Overhead Activity Cost Pol Travel Cost Expected Activity $ 150,000 $ 110,000 $ 220,000 100.000 miles driven Deliverles 2,200 customer deliverles Customer service 10,000 phone calls What is the activity rate for the Travel activity? Multiple Choice $1.50 per mile driven $15.00 per mile driven $0.15 per mile driven $1.15 per mile driven
Abbe Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A is 2,100 units and of Product B is 1,200 units. There are three activity cost pools, with estimated costs and expected activity as follows: Activity Cost Pools Estimated Overhead Cost Expected Activity Product A Product B Total Activity 1 $ 60,791 1,600 1,500 3,100 Activity 2 $ 83,421 2,600 1,300 3,900 Activity 3 $ 97,442 840 820 1,660 The overhead cost per unit of Product B is closest to: (Round your intermediate calculations to 2 decimal places.)