A manufacturer uses activity-based costing to assign overhead cost to products. Budgeted cost information for its activities follows. Activity Purchasing Factory services Setup Budgeted Cost $ 183,600 102,450 67,450 Activity Cost Driver Purchase orders Square feet Setups Compute an activity rate for each activity. (Round your answers to 2 decimal places.) Budgeted Activity Usage Budgeted Activity Usage 5,100 purchase orders 5,600 square feet 50 Setups Activity Rate Activity Budgeted Cost Purchasing $ 183,600 Factory services $ 102,450 Setup $ 67,450

A manufacturer uses activity-based costing to assign overhead cost to products. Budgeted cost information for its activities follows. Activity Purchasing Factory services Setup Budgeted Cost $ 183,600 102,450 67,450 Activity Cost Driver Purchase orders Square feet Setups Compute an activity rate for each activity. (Round your answers to 2 decimal places.) Budgeted Activity Usage Budgeted Activity Usage 5,100 purchase orders 5,600 square feet 50 Setups Activity Rate Activity Budgeted Cost Purchasing $ 183,600 Factory services $ 102,450 Setup $ 67,450

Name: A manufacturer uses activity-based costing to assign overhead cost to
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Description: A manufacturer uses activity-based costing to assign overhead cost to products. Budgeted cost information for its activities follows.ActivityPurchasingFactory servicesSetupBudgeted Cost$ 183,600102,45067,450Activity Cost DriverPurchase orders.Square

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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Activity Cost Pools, Activity Rates, and Product Costs using Activity-Based Costing Caldwell Home Appliances Inc. is estimating the activity cost associated with producing ovens and refrigerators. The indirect labor can be traced into four separate activity pools, based on time records provided by the employees. The budgeted activity cost and activity-base formation are provided as follows: Activity Procurement Scheduling Materials handling Product development Total cost Ovens Refrigerators Totals Activity Pool Cost $12,600 90,000 11,000 50,000 $163,600 The estimated activity-base usage and unit information for two product lines was determined as follows: Ovens Refrigerators Number of purchase orders Number of production orders Number of moves Number of engineering changes Number of Purchase Orders 400 300 700 Procurement (per purchase order) Scheduling (per production order) Materials handling (per move) Product development (per engineering change order) Activity Base Number of…
Riverbed Manufacturing has five activity cost pools and two products (a budget tape vacuum and a deluxe tape vacuum). Information is presented below: Activity Cost Pools Ordering and Receiving Machine Setup Machining Assembly Inspection Budget $ Cost Driver Orders Setups Machine hours Deluxe $ Parts Inspections Overhead cost per unit Est. Overhead $144,000 311,400 1,023,000 1,624,000 314,000 per unit Est. Use of Cost Drivers Budget per unit 600 500 150,000 1.200,000 550 Deluxe 400 Compute the overhead cost per unit for each product. Production is 700.000 units of Budget and 200.000 units of Deluxe. (Round per machine hour and per part values to 3 decimal places, eg 52.711. Round overhead cost per unit to 2 decimal places, e.g. 12.25 and cost assigned to 0 decimal places, eg. 2,500.) 400 100,000 800,000 450
Activity Clerical support Facility services Client consultations Activity usage for each service follows. Activity Cost Driver Documents Billable hours Court dates Budgeted Cost Required 1 Required 2 $ 57,600 20,160 72,800 Activity Clerical support Facility services Client consultations Budgeted Activity Usage 360 documents 2,520 billable hours 28 court dates Activity Usage Litigation 210 920 20 Mediation 150 1,600 8 Required: 1. Compute an activity rate for each activity using activity-based costing. 2. Compute overhead cost per unit (case) for both litigation and mediation using activity-based Total 360 2,520 28 Complete this question by entering your answers in the tabs below. Compute an activity rate for each activity using activity-based costing. (Round "Activity rate" to 2 c Budgeted Cost Budgeted Activity Usage Activity Rate
The following table presents the activities and activity drivers that LampPlus uses in manufacturing Product 1 and Product 2. Complete the table: Activity Design Preparation Machining Finishing Inspection Packaging Shipping Cost Activity Driver $ 39,060 Design time $ 67,650 Labor hours 105,200 Machine hours $ Batches Units Orders $ 12,720 Packages Driver Usage Prod. 1 840 3,130 209 76 Prod. 2 1,330 hours hours 300 56 Activity Rate $ $ $ $ /hour /hour 20 /hour 50 /batch 17 /unit 302 /order /package Activity Cost:Prod. 1 $ $ $ $ 34,430 31,200 Activity Cost:Prod. 2 9,690 $ 12,986 $ 19,720 3,600
A company uses activity-based costing to determine the costs of its three products: A, B, and C. The budgeted cost and activity for each of the company's three activity cost pools are shown in the following table: Budgeted Activity Activity Cost PoolBudgeted Cost Product AProduct BProduct Activity 1 7,500 10,500 21,500 Activity 2 8,500 16,500 9,500 Activity 3 4,000 2,500 3,125 How much overhead will be assigned to Product B using activity-based costing? 85,000 60,000 112,000
Please help me with show all calculation thanku
Exercise 7-7 (Static) First-Stage Allocations [LO7-2] The operations vice president of Security Home Bank has been interested in investigating the efficiency of the bank's operations. She has been particularly concerned about the costs of handling routine transactions at the bank and would like to compare these costs at the bank's various branches. If the branches with the most efficient operations can be identified, their methods can be studied and then replicated elsewhere. While the bank maintains meticulous records of wages and other costs, there has been no attempt thus far to show how those costs are related to the various services provided by the bank. The operations vice president has asked your help in conducting an activity-based costing study of bank operations. In particular, she would like to know the cost of opening an account, the cost of processing deposits and withdrawals, and the cost of processing other customer transactions. The Westfield branch of Security Home…
S Activity Cost Pool Labor-related Purchase orders Product testing Template etching General factory Activity Cost Pool Labor-related (DLHS) Activity Measure Direct labor-hours Number of orders Number of tests Number of templates Machine-hours Product A Product B Product C Product D Cost $ 19,250 $ 1,820 $ 6,320 $ 960 $ 68,600 Total Overhead Cost 2. The expected activity for the year was distributed among the company's four products as follows: Expected Activity 1,375 DLHS Expected Activity Product A Product B Product C Product D 300 650 125 300 20 65 180 190 Purchase orders (orders) Product testing (tests) 65 0 80 Template etching (templates) 250 0 26 10 4 General factory (MHs) 3,800 2,000 1,200 2,800 Using the ABC data, determine the total amount of overhead cost assigned to each product. 455 orders 395 tests 40 templates S 9,800 MHs
Activity Rates and Product Costs using Activity-Based Costing Lonsdale Inc. manufactures entry and dining room lighting fixtures. Five activities are used in manufacturing the fixtures. These activities and their associated budgeted activity costs and activity bases are as follows: Activity Casting Assembly Inspecting Setup Materials handling Activity Base Machine hours Direct labor hours Number of inspections Number of setups Number of loads Units produced Budgeted Activity Cost Activity Base Corporate records were obtained to estimate the amount c activity to be used by the two products. The estimated activity-base usage quantities and units produced follow: Entry Dining Total 5,440 4,830 10,270 4,680 7,030 11,710 1,870 590 2,460 270 810 10,800 Activity Casting Assembly Inspecting Setup Materials handling a. Determine the activity rate for each activity. If required, round the rate to the nearest dollar. Activity Rate $ $ $ $225,940 Machine hours 222,490 39,360 46,860 50,470 $ Direct…
Which of the following items is exempt from including into the assessable income for salaries tax purposes? Select one: a. Leave pay b. Commission c. Compensation for termination of employment not provided in the contract d. End of contract gratuities
Assume a service company has implemented an activity-based costing system with five activities as shown below: Activity Cost Pool (Activity Measure) Total Cost Total Activity $ 400,000 $ 280,000 $ 150,000 $ 450,000 $ 300,000 Customer deliveries (Number of deliveries) Manual order processing (Number of manual orders) 8,000 deliveries 5,000 manual orders Electronic order processing (Number of electronic orders) 15,000 electronic orders Line item picking (Number of line items picked) Other organization-sustaining costs (None) 375,000 line items The company serves numerous customers, two of which include Hospital A and Hospital B. The activity demands pertaining to these two customers are as follows: Activity Activity Measure Hospital A Hospital B Number of deliveries 12 25 Number of manual orders 30 Number of electronic orders 15 Number of line items picked 130 250 How much total activity cost should be assigned to Hospital A for internal management purposes?