A company has two products: A and B. It uses activity-based costing and has prepared the following analysis showing budgeted cost and activity for each of its three activity cost pools: Activity Cost Pool Activity 1 O $10.28 $3.00 $2.33 Budgeted Cost $87,000 $62,000 $93,000 $2.00 Budgeted Activity 3,000 Activity 2 4,500 Activity 3 2,500 5,250 Annual production and sales level of Product A is 34,300 units, and the annual production and sales level of Product B is 69,550 units. What is the approximate overhead cost per unit of Product B under activity-based costing? Product A Product B 2,800 5,500

A company has two products: A and B. It uses activity-based costing and has prepared the following analysis showing budgeted cost and activity for each of its three activity cost pools: Activity Cost Pool Activity 1 O $10.28 $3.00 $2.33 Budgeted Cost $87,000 $62,000 $93,000 $2.00 Budgeted Activity 3,000 Activity 2 4,500 Activity 3 2,500 5,250 Annual production and sales level of Product A is 34,300 units, and the annual production and sales level of Product B is 69,550 units. What is the approximate overhead cost per unit of Product B under activity-based costing? Product A Product B 2,800 5,500

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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A. Calculate the budgeted full production cost per unit of each product using Ashley Co’s current method of absorption costing. B. Calculate the budgeted full production cost per unit of each product using activity-based costing.
Panamint Systems Corporation is estimating activity costs associated with producing disk drives, tapes drives, and wire drives. The indirect labor can be traced to five separate activity pools. The budgeted activity cost and activity base data by product are as follows: Procurement Scheduling Materials handling Product development Production Disk drives Tape drives Wire drives Activity Cost $379,200 245,800 402,900 728,700 1,528,900 Number of Purchase Orders 3,890 1,700 13,000 Activity Base Number of purchase orders Number of production orders Number of moves Number of engineering changes Machine hours c. $148.42 per machine hour O d. $20.4 per machine hour Number of Number Number of of Moves Production Orders 280 155 870 1,330 500 3,600 Engineering Changes 13 3 20 Machine Hours 1,500 8,400 10,700 The activity rate (rounded to the nearest cent) for the production cost pool is O a. $74.2 per machine hour O b. $74.22 per machine hour O Number of Units 2,100 3,900 3,000
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A company selts two types of products: standard and deluxe. It prepares the following analysis showing budgeted cost and cost driver activity for each of its three activities Budgeted Activity Usage Deluxe Total Activity Factory services Setup Quality control Budgeted Cost $ 104,400 $ 11,500 5 116,250 Activity Cost Driver Square feet Setups Units Inspected Standard 3,000 300 2, 500 5,800 2,800 200 500 5,250 7,750 Compute an activityrate for each activity using activity-based costing. Activity Budgeted Cost Budgeted Activity Usage Activity Rate Factory services Setup 104,400 11.500 Quality control 116,250
Troglodyte University uses activity-based costing to assign indirect costs to academic departments, using three activities. The activity base, budgeted activity cost, and estimated activity-base usage for each activity are identified as follows: Budgeted Activity-Base Activity Activity Base Activity Cost Usage Facilities Square feet $800,000 80,000 square feet Instruction Number of course sections 1,200,000 600 sections Student services Number of students 290,000 2,500 students The activity-base usage associated with the Archaeology and Geology departments is as follows: Department Facilities Instruction Student Services Archaeology 8,000 square feet 8 sections 150 students Geology 5,200 square feet 15 sections 200 students a. Determine the activity rate for each activity. Activity Activity Rate Facilities per sq. ft. Instruction per section Student services per student b. Determine the total activity cost for the Archaeology Department. Total activity cost Next
please answer correctly and explain in detail with computation, explanation, formula of numbers for both batrs step by step for better understanding thanks answer in text
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A company sells two types of products: standard and deluxe. It prepares the following analysis showing budgeted cost and cost driver activity for each of its three activities.
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Service Department Charges and Activity Bases Middler Corporation, a manufacturer of electronics and communications systems, uses a service department charge system to charge profit centers with Computing and Communications Services (CCS) service department costs. The following table identifies an abbreviated list of service categories and activity bases used by the CCS department. The table also includes some assumed cost and activity base quantity information for each service for October. CCS ServiceCategory Activity Base Budgeted Cost Budgeted ActivityBase Quantity Help desk Number of calls $132,650 3,500 Network center Number of devices monitored 630,400 9,850 Electronic mail Number of user accounts 64,800 7,200 Handheld technology support Number of handheld devices issued 133,920 9,300 One of the profit centers for Middler Corporation is the Communication Systems (COMM) sector. Assume the following information for the COMM sector: The sector has…