Ace Mining Tools Ltd. of Calgary makes specialty tools used in the mining industry. The company uses an ABC system for internal decision making. The company has four activity cost pools, as listed below: Activity Rate $ 17.60 per direct labour-hour $360.00 per customer order $ 79.00 per testing hour $750.00 per sales call Activity Cost Pool Order size Activity Measure Number of direct labour-hours Customer orders Number of customer orders Product testing Selling Number of testing hours Number of sales calls The managing director of the company would like information concerning the cost of a recently completed order for hard-rock dril The order required 100 direct labour-hours, 20 hours of product testing, and five sales calls. Required: 1. Prepare a report showing the overhead cost of the order for hard-rock drills according to the ABC system. What is the total over cost assigned to the order? Activity Cost Pool ABC Cost Order size $

Ace Mining Tools Ltd. of Calgary makes specialty tools used in the mining industry. The company uses an ABC system for internal decision making. The company has four activity cost pools, as listed below: Activity Rate $ 17.60 per direct labour-hour $360.00 per customer order $ 79.00 per testing hour $750.00 per sales call Activity Cost Pool Order size Activity Measure Number of direct labour-hours Customer orders Number of customer orders Product testing Selling Number of testing hours Number of sales calls The managing director of the company would like information concerning the cost of a recently completed order for hard-rock dril The order required 100 direct labour-hours, 20 hours of product testing, and five sales calls. Required: 1. Prepare a report showing the overhead cost of the order for hard-rock drills according to the ABC system. What is the total over cost assigned to the order? Activity Cost Pool ABC Cost Order size $

Name: Ace Mining Tools Ltd. of Calgary makes specialty tools used in the mi
Uploaded: 2024-03-20T06:32:49.000Z
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Description: Ace Mining Tools Ltd. of Calgary makes specialty tools used in the mining industry. The company uses an ABC system for internaldecision making. The company has four activity cost pools, as listed below:Activity Rate$ 17.60 per direct labour-hour$360

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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