I want right solution step by step Abagail Corp uses an activity-based costing system with threeactivity cost pools. the following information is provided:Costs: Wages and salaries 209,000Depreciation109,000Utilities115,000Total440,000Assembly Setting up OtherWages and salaries 0.6136811%Depreciation0.3045%20%Utilities0.2040%30%How much total cost would be allocated toactivity cost pool?the assembly

To calculate the total cost allocated to the assembly activity cost pool, we need to allocate each…

Answered: Abagail Corp uses an activity-based…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 14PB: Summarized data for Backdraft Co. for its first year of operations are as follows: A. Prepare an...

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Sanford, Inc., has developed value-added standards for four activities: purchasing parts, receiving parts, moving parts, and setting up equipment. The activities, the activity drivers, the standard and actual quantities, and the price standards for 20x1 are as follows: The actual prices paid per unit of each activity driver were equal to the standard prices. Required: 1. Prepare a cost report that lists the value-added, non-value-added, and actual costs for each activity. 2. Which activities are non-value-added? Explain why. Also, explain why value-added activities can have non-value-added costs.
Ayala Inc. has conducted the following analysis related to its product lines, using a traditional costing system (volume-based) and an activity-based costing system. Both the traditional and the activity-based costing systems include direct materials and direct labor costs. Products Product 540X Product 137Y Product 2495 Sales Revenue $208,000 155,000 92.000 Total Costs Traditional $54,000 48,000 23.000 ABC $49,000 30,000 46,000
The graphs below represent cost behavior patterns that might occur in acompany's cost structure. The vertical axis represents total cost, and thehorizontal axis represents activity output. Required:For each of the following situations, choose the graph from the group a-1 that best illustrates the cost pattern involved. Also, for each situation,identify the driver that measures activity output. 1. The cost of power when a fixed fee of $500 per month is chargedplus an additional charge of $0.12 per kilowatt-hour used2. Commissions paid to sales representatives. Commissions arepaid at the rate of 5 percent of sales made up to total annual salesof $500,000, and 7 percent of sales above $500,000.3. A part purchased from an outside supplier costs $12 per part for the first 3,000 parts and $10 per part for all parts purchased inexcess of 3,000 units.4. The cost of surgical gloves, which are purchased in incrementsof 100 units (gloves come in boxes of 100 pairs).5. The cost of tuition at a…
Compute the following: Operating income under variable (direct) costing method Operating income under absorption costing method Operating income under throughput costing method
Compute operating income using the traditional costing system
How much total cost would be allocated to the assembly activity cost pool?
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The following statements have been made about life cycle costing: (i) It focuses on the short-term costs at the beginning of a product’s life cycle (ii) It identifies all costs which arise in relation to the product annually to calculate the product’s annual profit. (iii) It accumulates a product’s costs over its whole life time and works out the overall profitability of a product (iv) It allocates costs to each stage of a product’s life cycle and writes them off at the end of each stage Which of the above statements is/are correct? a. (iii) only b. (i) and (iii) c. (i) and (iv) d. (ii) only
Help Save & Exit Submit TB MC Qu. 7-52 (Algo) Eccles Corporation uses an activity-based costing... Eccles Corporation uses an activity-based costing system with three activity cost pools. The company has provided the following data concerning its costs and its activity based costing system: Costs: Wages and salaries Depreciation Utilities $ 318,000 247,000 206,000 $ 771,000 Total Distribution of resource consumption: Activity Cost Pools Setting Up Assembly Other Total Wages and salaries Depreciation Utilities 30% 10% 45% 25% 100% 30% 20% 60% 100% 50% 30% 100% How much cost, in total, would be allocated in the first-stage allocation to the Assembly activity cost pool? Multiple Choice, hp
Scarborough Company has two products: C and D. The company usesactivity - based costing. The estimated total cost and expected activity foreach of the company's three activity cost pools are as follows:Expected ActivityActivity Cost Pool Estimated Cost Product C Product D TotalActivity 1 S17, 848 S17, 848 100 800Activity 2 S16,350 618 150 768Activity 3 S22, 185 842 120 962How much of Activity 1 is expected to be allocated to Product C? Multiple Choice S22, 310.00S17, 848.00S15, 617.00S2, 231.00
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Ayala Inc. has conducted the following analysis related to its product lines, using a traditional costing system (volume-based) and an activity-based costing system. Both the traditional and the activity-based costing systems include direct materials and direct labor costs.Products Sales Revenue Traditional ABC Product 540x $180,000 $55,000 $50,000 Product 137Y 160,000 50,000 35,000 Product 249S 70,000 15,000 35,000(a) For each product line, compute operating income using the traditional costing system. (b) For each product line, compute operating income using the activity-based costingsystem. (c) Using the following formula, compute the percentage difference in operating incomefor each of the product lines of Ayala: [Operating Income (ABC) − Operating Income(traditional cost)] ÷ Operating Income (traditional cost). (Round to two decimals.) (d) Provide a rationale as to why the…

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