ABC Company uses activity-based costing to determine products costs for external financial reports. Thehas provided the following data concerning its acțivity-based costing system:companyActivity cost pools (andactivity measures)Depreciation (allocatedbased on machine-hours)Estimated Overhead costs$67,500Batch setup (allocated basedon # of set ups)273,700General Factory (allocatedbased on direct labor hours)204,000Expected Activity (Allocation base)Product yActivity Cost poolDepreciationBatch setupGeneral factoryWhat is the total Manufacturing overhead allocated to product y?TotalProduct x5000 m hours400010007000 set ups300040008000 dl hours10007000 ABC Company uses activity-based costing to determine products costs for external financial reports. Thecompany has provided the following data concerning its activity-based costing system:Activity cost pools (andactivity measures)Depreciation (allocatedbased on machine-hours)Estimated Overhead costs$67,500Batch setup (allocated basedon # of set ups)273,700General Factory (allocatedbased on direct labor hours)204,000Expected Activity (Allocation base)Activity Cosi poolDepreciationBatch setupGeneral factoryWhat is the total Manufacturing overhead allocated to product x?TotalProduct xProduct5000 m hours300020007000 set ups300040008000 dl hours20006000

"Since you have asked multiple questions, we will solve first question for you. If you want any…

Answered: ABC Company uses activity-based costing…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Koontz Company manufactures two models of industrial components-a Basic model and an Advanced Model. The company considers all of its manufacturing overhead costs to be fixed and it uses plantwide manufacturing overhead cost allocation based on direct labor-hours. Koontz's controller prepared the segmented income statement that is shown below for the most recent year (he allocated selling and administrative expenses to products based on sales dollars): Basic Advanced Total Number of units produced and sold 20,000 10,000 30,000 $ 5,000,000 3,650,000 1,350,000 1,200,000 $3,000,000 $2,000,000 1,350,000 650,000 480,000 Sales Cost of goods sold Gross margin Selling and administrative expenses 2,300,000 700,000 720,000 (20,000) Net operating income (loss) $4 $4 170,000 150,000 Direct laborers are paid $20 per hour. Direct materials cost $40 per unit for the Basic model and $60 per unit for the Advanced model. Koontz is considering a change from plantwide overhead allocation to a departmental…
CanCo Company manufactures a single product. The company keeps careful records of manufacturing activities, from which the following Information has been extracted: Number of units produced Cost of goods manufactured Work-in-process inventory, beginning Work-in-process inventory, ending Direct materials cost per unit Direct labour cost per unit Manufacturing overhead cost, total Manufacturing overhead cost Y= Level of Activity March The company's manufacturing overhead cost consists of both variable and fixed cost elements. To have data available for planning, management wants to determine how much of the overhead cost is variable with units produced and how much of it is fixed per month. $ 5,200 $260,800 31,000 53,000 Required: 1. For both March and June, determine the amount of manufacturing overhead cost added to production. (Hint: A useful way to proceed might be to construct a schedule of cost of goods manufactured.) Cost of goods manufactured Answer is complete but not entirely…
Naples Corporation has provided the following data from its activity-based costing accounting system: Indirect factory wages $ 820,000 Factory equipment depreciation $ 410,000 Distribution of resource consumption across activity cost pools: Customer Orders Product Processing Other Total Indirect factor wages 50 % 40 % 10 % 100 % Factory equipment depreciation 10 % 70 % 20 % 100 % The "Other" activity cost pool consists of the costs of idle capacity and organization-sustaining costs that are not assigned to products. How much indirect factory wages and factory equipment depreciation cost would be assigned to the Customer Orders activity cost pool?
Weldon Corporation has provided the following data from its activity-based costing accounting system: Indirect factory wages Factory equipment depreciation Distribution of Resource Consumption across Activity Cost Pools: $ 340,000 $ 240,000 Customer Orders 25% 40% Product Processing 65% 40% Activity Cost Pools Indirect factory wages Factory equipment depreciation The "Other" activity cost pool consists of the costs of idle capacity and organization-sustaining costs that are not assigned to products. How much indirect factory wages and factory equipment depreciation cost would NOT be assigned to products using the activity-based costing system? Other 10% 20% Total 100% 100%
Meester Corporation has an activity-based costing system with three activity cost pools--Machining, Order Filling, and Other. In the first stage allocations, costs in the two overhead accounts, equipment depreciation and supervisory expense, are allocated to three activity cost pools based on resource consumption. Data used in the first stage allocations follow: Overhead costs: Equipment depreciation Supervisory expense $ 87,000 $ 9,400 Distribution of Resource Consumption Across Activity Cost Pools: Activity Cost Pools Order Filling Machining other Equipment depreciation Supervisory expense 0.60 0.30 0.10 0.60 0.20 0.20 Machining costs are assigned to products using machine-hours (MHs) and Order Filling costs are assigned to products using the number of orders. The costs in the Other activity cost pool are not assigned to products. Activity data for the company's two products follow: Activity: Orders (Order Filling) MHs (Machining) Product MØ 1,510 1,030 Product H2 9,030 2,250 Total…
karan subject-Accounting
Godiva company has two products, A and B. The company uses activity-based costing to allocate overhead costs of $100,000. Data relating to the company's activity pools for the current year are given below: Cost Pool Total cost in Total Number of Activity Measures Used Cost Pool Product A Product B Total Activity 1 $42,000 100 200 300 Activity 2 $10,000 20 5 25 Activity 3 $48,000 3,000 3,000 6,000 Compute the activity rate (allocation rate) for Activity 2: $500 $2,000 $400 $140
Walsh Corporation uses an activity-based costing system to assign overhead costs to products. In the first stage, two overhead costs- equipment depreciation and supervisory expense-are allocated to three activity cost pools--Mach g. Order Filling, and Other-based on resource consumption. Data to perform these allocations appear below: Overhead costs: Equipment depreciation $47,000 Supervisory expense Distribution of Resource Equipment depreciation Supervisory expense $6,000 Consumption Across Activity Cost Pools: Activity: Activity Cost Pools Machining Order Filling Other 0.60 0.30 0.60 0.20 0.10 0.20 In the second stage, Machining costs are assigned to products using machine-hours (MHS) and Order Filling costs are assigned to products using the number of orders. The costs in the Other activity cost pool are not assigned to products. Activity data for the company's two products follow: MHS (Machining) Orders (Order Filling) n
Savita
A company has provided the following data from its activity-based costing accounting system: Indirect factory wages $552,000 Factory equipment depreciation $332,000 Distribution of Resource Consumption across Activity Cost Pools: 14 Activity Cost Pools Customer Product Orders Processing Other Total Indirect factory wages 55% 35% 10% 100% Factory equipment depreciation 30% 50% 20% 100% The "Other" activity cost pool consists of the costs of idle capacity and organization- sustaining costs, How much indirect factory wages and factory equipment depreciation cost would NOT be assigned to products using the activity-based costing system? Multiple Choice $552,000 $332.000 $121,600 $0
Multiple Choice $685 per order $675 per order $544 per order $665 per order
Ivanhoe 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 activity-based costing systems include direct materials and direct labour costs. Products Product 440X Product 137Y Product 249S (a) Sales Revenue $201,000 172,000 Operating income 87,000 Total Costs Traditional $55,000 74,000 26,000 Additional information related to product usage by these pools is as follows: ABC $50,036 70,668 34,296 For each product line, calculate operating income using the traditional costing system. Product 440X Traditional costing system $ Product 137Y $ Product 249S

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS