1 The distribution of resource consumption across the activity cost pools is as follows: Pickup and Customer Delivery Service 35% 10% 5% 08 15% Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses Office expenses Administrative expenses Travel 50% 70% 60% Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses 08 0% 0% Required: Complete the first stage allocations of costs to activity cost pools. 0% 20% 5% Travel Pickup and Delivery 0% 90% 30% 60% Other 5% 25% 25% 10% 50% 35% Customer Service Totals 100% 100% 100% 100% 100% 100% Other Totals

1 The distribution of resource consumption across the activity cost pools is as follows: Pickup and Customer Delivery Service 35% 10% 5% 08 15% Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses Office expenses Administrative expenses Travel 50% 70% 60% Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses 08 0% 0% Required: Complete the first stage allocations of costs to activity cost pools. 0% 20% 5% Travel Pickup and Delivery 0% 90% 30% 60% Other 5% 25% 25% 10% 50% 35% Customer Service Totals 100% 100% 100% 100% 100% 100% Other Totals

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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ABC Company has an ABC system with three pools: Total cost in cost pool Activity Machine setups Customer service Maintenance $18,500 $5,000 Cost Driver $29,000 #setups O $9,000 #orders not enough information machine- hours $13,000 $6,000 $10,000 Compute total capacity costs allocated to product X. Activity volume (#cost driver units) Product X Product Y Total 45 15 25 20 5 25 65 20 50
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Last question 4) The company uses normal costing with two direct-cost categories: Direct materials Direct manufacturing labor Furthermore, the company uses two manufacturing overhead cost pools: Machining department with machine- hours as the allocation base Assembly department with direct manufacturing labor costs as the allocation base. The budget for the plant in 2020 is as follows: Production plant Machine department Assembly department Manufacturing overhead costs 13 597 500 12 271 500 Direct manufacturing labor costs 1 455 000 6 075 000 Direct manufacturing labor-hours 54 000 22 500 Machine-hours 277 500 55 500 What is the budgeted manufacturing overhead rate in the machining and the assembly department? Overhead is the direct cost involved in the production process of the business of the company Calculation of budgeted manufacturing overhead rate in machine department: Budgeted manufacturing…
3 manage costs? 10-31. Activity-Based Costing of Customers Rupert's Appliance Warehouse (RAW) delivers appliances to retailers throughout the city. The firm adds 6 percent to the cost of the appliances to cover the delivery cost. The delivery fee is meant to cover the cost of delivery. The finance team at RAW has analyzed the delivery service using activity-based costing methods and identified four activities. Data on these activities follow: 100 Activity Processing order.. Loading truck... Delivering order..... Billing..... Total overhead. .. Cost Driver Number of orders Number of items Number of orders Number of invoices Order value (total) . . . . . Number of orders.. Total number of items. Number of invoices. Activity Cost $ 90,000 180,000 108,000 70,000 $448,000 Two of Rupert's customers are McLean Designs and Neveux Appliances. Data for orders and deliveries to these two customers follow: .. Cost Driver Volume 3,000 orders 60,000 items 3,000 orders 2,500 invoices McLean Designs…
Please Answer part 4. Part 1-3 answers Part 1 Computation of Cost Allocation Rate for each activity: Activity Costs Base usage Allocation rate Material Handling 160,000 20,000 8 Packaging 390,000 2,000 195 Quality Assurance 112,000 1,600 70 Total 662,000 Part 2 Activity Usage of All Activities: Activity Commercial Travel Total Material Handling 8700 4450 13,150 Packaging 900 300 1,200 Quality Assurance 270 370 640 Allocation of Cost basis Usage: Activity Commercial Travel Material Handling 69,600 35600 (Activity Usage * Cost Allocation Rate) (8,700 * 8) (4450 * 8) Packaging 175,500 58500 Quality Assurance 18,900 25900 Total 264,000 120000 Units Produced 3,000 20000 Cost Per Unit 88 6 Part 3 Particulars Commercial Travel Usage of…
1. Compute an activity rate for each activity using activity-based costing.
Activity-Based Costing CardioTrainer Equipment Company manufactures stationary bicycles and treadmills. The products are produced in the Fabrication and Assembly production departments. In addition to production activities, several other activities are required to produce the two products. These activities and their associated activity rates are as follows: Activity Activity Rate Fabrication $22 per machine hour (mh) Assembly $12 per direct labor hour (dlh) Setup $40 per setup Inspecting $18 per inspection Production scheduling $8 per production order Purchasing $5 per purchase order The activity-base usage quantities and units produced for each product were as follows: Stationary Bicycle Treadmill Machine hours 1,680 1,070 Direct labor hours 243 131 Setups 45 20 Inspections 158 94 Production orders 60 32 Purchase orders 240 98 Units produced 500 350
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Hosmer Industries provides the following information about resources and usage: Unused Resources Capacity Cost Driver Volume Resources used Materials Power Setups Purchasing $ 4,800 $ 3,744 $ 1,800 $ 4,320 Client assistance $18,240 $ 8,160 $ 6,720 6,400 272 62 64 $ 235,200 $ 42,912 $ 57,600 $ 50,400 $ 37,440 $ 69,600 $ 67,200 40 256 3,360 Supervision Facility cost Resources supplied Materials Power Setups Purchasing Client assistance Supervision Facility cost Sales revenue for Hosmer Industries is $720,000. Required: Prepare a traditional income statement. Prepare an activity-based income statement. pounds hours setups purchase orders inquiries labor-hours square meters
Conlon Enterprises reports the following information about resources. Cost Driver Rate Cost Driver Volume Resources used Setups $ 370 per run 425 runs Clerical 50 per page 2,500 pages typed Resources supplied Setups $ 160,450 Clerical 133,400 Sales revenue totaled $315,000. Required: a. Prepare a traditional income statement. b. Prepare an activity-based income statement.
how do I explain this? Metric Score Percent of Total Possible Contribution Margin 4.7 /5 Plant Utilization 5.0 /5 Days of Working Capital 5.0 /5 Stock-out Costs 5.0 /5 Inventory Carrying Costs 3.6 /5 Overall Score 23.3 /25
Solve the questions answer of number 3 & 4