I NEED ONLY QUESTION # 6 BUT I NEED A CLEAR EXPLANATION OF IT. I RECIEVED BACK A WRONG ANSWER EVEN WHEN I GAVE THE ANSWERANSWER FOR QUESTION # 4 IS $ 126.75 AND FOR QUESTION # 6 IS A. $127500 IF YOU COME UP WITH A DIFFERENT ANSWER PLEASE DO NOT SUBMIT IT BECAUSE I HAVE TO ASK AGAIN AS ALWAYS DO THEN I CAN LOSE ONE QUESTION. The next three questions are based on the following information:Alrex company is using an activity-based costing (ABC) system. The company produces and sells two products: Basic andPro. The company consists of two departments: Production (where all manufacturing activities are taken) and Marketing(which engages in sclling and admin activity only). The ABC'system includes in unit product costs all costs casily associatedwith units. In addition, in the ABC system, there are four major indirecet activities: Machine Setaps, Special Processing.Factory Supervision, and Customer Relation.The prices, direct material cost (DM), shipping cost and direct labor-hours (DLHS) are given below for one unit of theproduct, as well as the total units produced and sold.HourlyWage-DL$10ProductPriceDMDLHSShipping CostUnitsBasicS180$501$26,000Pro$320$802$12$44,000The company collected the data for ABC as follows:Activity measures usedEstimated OH.Activity Cost PoolActivity Measure# of setupsBasiccost$ 472,500$ 360,000$ 224,000$ 240,000ProMachine SetupSpecial ProcessingFactory SupervisionCustomer Relation (10 customers)60120Machine hours6,00010,000DLH# of customers4 Under the ABC system, what is the unit product cost for Basic? (Choose the closest amount,)A.$275.00В.$126.75C.$124.75D.$130.75E. None of the above5 Batch-level activities include (choose the most complete answer):A. Machine SetupB. Special ProcessingC. Factory SupervisionD. Machine Setup, Special Processing, and Factory SupervisionE. Special Processing and Factory Supervision 6 The company has two major customers (A and B), who buy their products in the amounts in the table below.CustomerBasicA2,000 units1,000 unitsB800Pro1,200How much is the ABC customer margin of customer B? (Choose the closest amount.)A. $ 127,500B. $ 135,500C. $ 151,500D. $ 159,500E. None of the above.

Activity-Based Costing: Activity-based costing (ABC) is an approach for all the more precisely…

6 The company has two major customers (A and B), who buy their products in the amounts in the table below. Customer Basic Pro A 800 2,000 units 1,200 1,000 units How much is the ABC customer margin of customer B? (Choose the closest amount.) A. $ 127,500 B. $ 135,500 C. $ 151,500 D. $ 159,500 E. None of the above.

6 The company has two major customers (A and B), who buy their products in the amounts in the table below. Customer Basic Pro A 800 2,000 units 1,200 1,000 units How much is the ABC customer margin of customer B? (Choose the closest amount.) A. $ 127,500 B. $ 135,500 C. $ 151,500 D. $ 159,500 E. None of the above.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter4: Activity-based Costing

Section: Chapter Questions

Problem 5CE: Roberts Company produces two weed eaters: basic and advanced. The company has four activities:...

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Chrzan, Incorporated, manufactures and sells two products: Product EO and Product NO. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: Product E0 Product Ne Total direct labor-hours Activity Cost Pools Labor-related Production orders Order size The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Estimated Overhead Cost Multiple Choice $33.94 per MH $54.20 per MH Direct Expected Labor-Hours Production Per Unit 10.1 410 1,550 9.1 $51.98 per MH $21.40 per MH Activity Measures DLHS orders MHs Total Direct Labor- Hours $ 301,890 61,087 585,366 $948,343 The activity rate for the Order Size activity cost pool under activity-based costing is closest to: 4,141 14, 105 18,246 Product E 4,141 850 5,550 Expected Activity Product NO 14, 105 950 5,250 Total 18,246 1,800 10,800
Arial Company has two products: A and B. The company uses activity-based costing. The total cost and activity for each of the company's three activity cost pools are as follows: Total Activity Activity Cost Pool Total Cost Product A Product B Total Activity 1 $ 38,000 800 500 1,300 Activity 2 $ 29,040 780 600 1,380 Activity 3 $ 26,600 900 650 1,550 The activity rate under the activity-based costing system for Activity 3 is:
Your Company has two products: A and B. The company uses activity-based costing. The estimated total cost and expected activity for each of the company's three activity cost pools are as follows: Estimated Expected Activity Activity Cost Pool Cost Product A Product B Total Activity 1 $17,600 700 300 1,000 Activity 2 $32,600 600 200 800 Activity 3 $52.500 900 500 1,400 What is the activity rate under the activity-based costing system for Activity 1? O $17.60 $58.33 O $37.50 $40.75. O $25.14
Using the information calculate the following,1. The manufacturing costs per unit and the total manufacturing costs, if all the overhead costs are absorbed on a machine hour basis.2. The overheads costs per unit using the ABC system
Delauder Enterprises makes a variety of products that it sells to other businesses. The company's activity-based costing system has four activity cost pools for assigning costs to products and customers. Details concerning that activity-based costing system are listed below: Activity Cost Pool Supporting assembly Processing batches. Processing orders. Serving customers Number of units purchased Number of batches. Activity Measure. Direct labor-hours (DLHS) Number of batches. Number of orders. Number of customers The cost of serving customers, $1,608.00 per customer, is the cost of serving a customer for one year. Grennon Corporation buys only one of the company's products. The details of last year's purchases of this product are listed below: Number of orders Direct labor-hour requirement. Selling price Direct materials cost Direct labor cost 1,500 units 5 batches 2 orders Activity Rate $ 3.45 per DLH $ 193.30 per batch $83.05 per order. $ 1,608.00 per customer 0.25 DLHS per unit $…
What are the Costs per unit of Alfa and Beta under traditional and ABC costing systems? What would be the prices of Alpha and Beta traditional and ABC costing systems? Compare the costs and prices calculated in the two systems. Please write down the calculation process!thanks!!!
Trimake Limited makes three main products, using broadly the same production methods and equipment for each. A conventional product costing system is used at present, although an activity-based costing (ABC) system is being considered. Details of the three products for a typical period are: Product X Product Y Product Z Hours per Labour hours 1/2 1½ 1 Costs relating to set-ups Costs relating to machinery Costs relating to materials handling Costs relating to inspection Total production overhead Product X Product Y Product Z unit Total activities for the period: 75 115 480 670 Machine hours 1½ 1 3 Direct labour costs £6 per hour and production overheads are absorbed on a machine hour basis. The rate for the period is £28 per machine hour. Further analysis shows that the total of production overheads can be divided as follows: Number of Number of set-ups (%) 35 movements of materials 12 21 87 120 Materials per unit £ 20 15 30 100% 20 12 25 The following activity volumes are associated…
Large, Inc., manufactures and sells two products: Product G8 and Product 00. Historically, the firm has used a traditional costing system, with direct laborurs as an activity base, to allocated manufaturing overhead to products. Data concerning the expected production of each product and the expected total direct labor-hours (DLHS) required to produce that output appear below: Product GS Product 00 Total direct labor-hours Product G8 Product 00 Activity Cost Pools Labor-related Expected Production 780 380 The direct labor rate is $22.90 per DLH. The direct materials cost per unit for each product is given below: Direct Materials Cost per Unit $121.10 $121.50 Machine setups Order size Activity Measures DLHS setups MHS Direct Labor-Hours Per Unit The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: 5.8 2.8 Estimated Overhead Cost $ 59,555 58,390 369,508 $487,453 Total Direct Labor- Hours…
Assume that a company has recently switched to JIT manufacturing. Each manufacturing cell produces a single product or major subassembly. Cell workers have been trained to perform a variety of tasks. Additionally, many services have been decentralized. Costs are assigned to products using direct tracing, driver tracing, and allocation. For each cost listed, indicate the most likely product cost assignment method used before JIT and after JIT. Set up a table with three columns: Cost Item, Before JIT, and After JIT. You may assume that direct tracing is used whenever possible, followed by driver tracing, with allocation being the method of last resort. Inspection costs Power to heat, light, and cool plant Minor repairs on production equipment Salary of production supervisor (department/cell) Oil to lubricate machinery Salary of plant supervisor Costs to set up machinery Salaries of janitors Power to operate production equipment Taxes on plant and equipment Depreciation on production…
Zwahlen Corporation has an activity-based costing system with three activity cost pools-Processing, Setting Up, and Other. Costs in the Processing 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. Data concerning the two products and the company's costs and activity-based costing system appear below: Activity Cost Pools Processing Setting Up Other Product D7 Product HO Total Sales (total) Direct materials (total) Direct labor (total) $ 59,800 $ 18,700 $ 30,500 MHS 10,000 14,000 24,000 Batches 1,200 1,800 3,000 Activity Rate per MH per batch Product D7 $225,300 $ 74,600 $ 106,600 Product HO $ 311,100 $ 147,200 $ 98,200 Required: a. Calculate activity rates for each activity cost pool using activity-based costing. b. Determine the amount of overhead cost that would be assigned to each product using activity-based costing.…
Jennifer Company has two products: A and B. The company uses activity-based costing. The estimated total cost and expected activity for each of the company's three activity cost pools are as follows: Estimated Expected Activity Overhead Activity Cost Pools Product design Assembling Supporting customers Cost Product A Product B 400 Total $23,500 $18,000 $34,600 100 200 300 500 500 600 700 900 The activity rate under the activity-based costing sysam for Supporting customers is closest to: Multiple Cholce $36.24 $84.56 S115.33 Prev 1 of 10 Next > 2:0 92 F AQI 61 9/9 Type here to search DELL
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 Filing, and Other-based on resource consumption, Data to perform these allocations appear below: Overhead costs: Equipment depreciation Supervisory expense $ 30,000 $ 14,800 Distribution of Resource Consumption Across Activity Cost Pools: Equipment depreciation Supervisory expense Activity: Product W1 Product Me Total Machining Order Filling 0.50 0.50 In the second stage, Machining costs are assigned to products using machine-hours (Ms) and Order Filing costs are assigned to products using the number of orders. The costs in the Other activity cost pool are not assigned to products. Product W1 Product Me Total Activity Cost Pools MHS (Machining) 5,530 17,000 22,530 0.40 0.30 Show Transcribed Text 5,530 17,000 22,530 Orders (Order Filling)…