BCD1 The following information relates to overhead cost at Chocolates by Jacki for the current year.2 Total costs and distribution of resource consumption across activity cost pools:345A6 Production Department:7 Indirect factory wages8Factory equipment depreciationFactory utilities910 Factory property taxes and insurance1112 General Administrative Department:13 Administrative wages and salaries14 Office equipment depreciation15 Administrative property taxes and insurance1617 Marketing Department:18 Marketing wages and salaries19 Selling expenses20Total Cost$400,000150,000120,00075,000275,00040,00060,000150,000100,000CustomerOrders21 Use the data to complete a First-Stage Allocation to Activity Cost Pools.22 When completing the table, copy formulas as appropriate.2350%55%59%57%20%32%0%20%32%Activity Cost PoolsProductDevelopment30%30%34%33%10%16%0%E10%16%CustomerRelations15%0%0%0%40%15%0%40%15%FOtherGTotal5% 100%15% 100%7% 100%10% 100%30% 100%37% 100%100% 100%30% 100%37% 100% B21 Use the data to complete a First-Stage Allocation to Activity Cost Pools.22 When completing the table, copy formulas as appropriate.CHELSEN & ERE,242526 Production Department:2728293132 General Administration Department:3334353637 Marketing Department:38399799394041 Total42434445CDActivity Cost PoolsEFTotalG4

Activity Based Costing : > Activity Based Costing ( ABC analysis ) is an accounting method that…

21 Use the data to complete a First-Stage Allocation to Activity Cost Pools. 22 When completing the table, copy formulas as appropriate. 23 24 D 868858 25 26 Production Department: 27 28 29 30 31 32 General Administration Department: 33 34 35 36 37 Marketing Department: 38 39 40 41 Total 42 43 Activity Cost Pools Total

21 Use the data to complete a First-Stage Allocation to Activity Cost Pools. 22 When completing the table, copy formulas as appropriate. 23 24 D 868858 25 26 Production Department: 27 28 29 30 31 32 General Administration Department: 33 34 35 36 37 Marketing Department: 38 39 40 41 Total 42 43 Activity Cost Pools Total

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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Concept explainers

Overheads

In cost accounting, overhead refers to those expenses which occur during the operating of a business. Overhead includes the fixed, variable, or semi-variable which is not directly involved with a company product or service. It is very important to analyze overhead expense as it helps the company in determining how much a company must charge for its products and services so that they can generate profit. Overhead expenses depend upon the nature of the business operations.

Question

B
C
D
1 The following information relates to overhead cost at Chocolates by Jacki for the current year.
2 Total costs and distribution of resource consumption across activity cost pools:
3
4
5
A
6 Production Department:
7 Indirect factory wages
8
Factory equipment depreciation
Factory utilities
9
10 Factory property taxes and insurance
11
12 General Administrative Department:
13 Administrative wages and salaries
14 Office equipment depreciation
15 Administrative property taxes and insurance
16
17 Marketing Department:
18 Marketing wages and salaries
19 Selling expenses
20
Total Cost
$
400,000
150,000
120,000
75,000
275,000
40,000
60,000
150,000
100,000
Customer
Orders
21 Use the data to complete a First-Stage Allocation to Activity Cost Pools.
22 When completing the table, copy formulas as appropriate.
23
50%
55%
59%
57%
20%
32%
0%
20%
32%
Activity Cost Pools
Product
Development
30%
30%
34%
33%
10%
16%
0%
E
10%
16%
Customer
Relations
15%
0%
0%
0%
40%
15%
0%
40%
15%
F
Other
G
Total
5% 100%
15% 100%
7% 100%
10% 100%
30% 100%
37% 100%
100% 100%
30% 100%
37% 100%

B
21 Use the data to complete a First-Stage Allocation to Activity Cost Pools.
22 When completing the table, copy formulas as appropriate.
CHELSEN & ERE,
24
25
26 Production Department:
27
28
29
31
32 General Administration Department:
33
34
35
36
37 Marketing Department:
38
39
979939
40
41 Total
42
43
44
45
C
D
Activity Cost Pools
E
F
Total
G
4

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