The company's products and other operating statistics are as follows:9. BM Motors Corporation has identified activity centers to whichand their selected cost drivers for 2014 are as follows:293apter 8assigned. The cost pool amounts for these centersoverhead costs areandromcem.CostsActivity CentersCost DriverseenUtilitiesScheduling and setupsMaterial handlingP 600,000546,0001,280,00030,000 machine hours390 setups800,000 kilos of materials0050Product AProduct BProduct CP 40,00015,000P 40,000P 45,00010,000Direct costsMachine hoursNumber of setupsKilos of materialNumber of units producedDirect labor hours5,00065190135250,00020,00016,000150,00010,000 -9,000400,00030,00025,000The company sets selling prices at cost plus a 20% markup.What is the unit cost of Product A using the appropriate cost drivers?a. Р49.86b. Р52.50c. P41.55d. P48.9610. Using the data in No. 9, assuming that the company before installingABC system, used a traditional costing system that allocatedmanufacturing overhead to products using direct labor hours. What18 the unit selling price of Product B?a. P57.20b. P51.30e. P50.69d. P59.16 294Chapter 811. United Company has used the traditional costing system to applyoverhead costs to all the products that it manufactures at 14.5% ofdirect labor cost. Monthly direct labor cost for its Product JJ isP27,500. In an attempt to distribute costs more equitably, United isconsidering activity-based costing. The monthly data shown belowhave been gathered for Product JJ:Cost DriverCost RatesQuantityActivityMaterials inspectionIn process inspectionProduct certificationType of materialsNumber of unitsPer orderP11.50 per typePO.14 per unitP77 per order12 types17,500 units25 ordersWhat is the monthly overhead cost allocated to Product JJ using theactivity-based costing?a. P525.50 lower than the cost using the traditional cost system.b. P68.64 per order.с. Р8,500d. P525.50 higher than the cost using the traditional cost system.12

The cost per unit is calculated as total cost divided by number of units produced.

Answered: and their selected cost drivers for…

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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Assume a company manufactures only two products—14,000 units of Product C and 6,000 units of Product D. It is considering implementing an activity-based costing (ABC) system that allocates all of its manufacturing overhead to three cost pools. The following additional information is available for the company as a whole and for Products C and D: Activity Cost Pool Activity Measure Estimated Overhead Cost Expected Activity Machining Machine-hours $ 300,000 15,000 MH Machine setups Number of setups $ 150,000 200 Setups Product design Number of products $ 78,000 2 Products Activity Measure Product C Product D Machine-hours 9,000 6,000 Number of setups 50 150 Number of products 1 1 Using the ABC system, how much total overhead cost would be assigned from all of the activities to Product D? Multiple Choice $271,500 $261,500 $301,500 $251,500
Helm 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: Manufacturing overhead Selling and administrative expenses Total Distribution of resource consumption: Manufacturing overhe Selling and administrative expenses Activity Cost Pools Customer Support 85% 20% Order Size 5% 60% S O $348,000 O $188,500 $29,000 O $84,000 S Other 10% 20% The "Other" activity cost pool consists of the costs of idle capacity and organization-sustaining costs. 480,000 100,000 580,000 You have been asked to complete the first-stage allocation of costs to the activity cost pools. Total 100% 100% How much cost, in total, would be allocated in the first-stage allocation to the Order Size activity cost pool? Next ▸
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Angel Corporation uses activity-based costing to determine product costs for external financial reports. The company has provided the following data concerning its activity-based costing system: Activity Cost Pools (and Activity Measures) Machine related (machine-hours) Estimated Overhead Cost $323,840 $363,000 $258,420 Batch setup (setups) Order size (direct labor-hours) Expected Activity Activity Cost Pools Machine related Product X Product Y Total 5,400 10,800 4,400 7,400 2,400 7,400 12,800 Batch setup 13,200 11,800 Order size Assuming that actual activity turns out to be the same as expected activity, the total amount of overhead cost allocated to Product X would be closest to: (Round your intermediate calculations to 2 decimal places.)
naion manufactures two models of office chairs, a standard and a deluxe model. The following activity and cost information has been compiled: Number of Number of Number of Product Setups Components Direct Labor Hours 16 Standard 265 Deluxe 34 14 245 Overhead costs $50,000 $58.900 Nrter of setups and number of components are identified as activity- cost drivers for overhead. Assuming an activity - based costing system is used, what is the total amount of overhead costs assigned to the standard modela OA $54,600 OB $77 400 OC. S54,450 O0 $31.500 O Time Remaining: 02:58:03 Next
Multiple predetermined overhead rates: calculated for each department by dividing total estimated manufacturing overhead cost by total actual units of the allocation base. O a. O b. makes job-order costing less accurate accounting for costs. O c. none of the given answers is correct. O d. are based on actual total manufacturing overhead costs are calculated at the beginning of the accounting perioc before the actual amount of manufacturing overhead is known. O e.
Helm 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: Manufacturing overhead Selling and administrative expenses Total Distribution of resource consumption: Manufacturing overhead Selling and administrative expenses $304,500 $493,000 Activity Cost Pools Customer Support 85% 20% O $116,000 O $428,000 Order Size 5% 60% S S Other 10% 20% The "Other" activity cost pool consists of the costs of idle capacity and organization-sustaining costs. You have been asked to complete the first-stage allocation of costs to the activity cost pools. How much cost, in total, would be allocated in the first-stage allocation to the Customer Support activity cost 480,000 100,000 580,000 Total 100% 100%
Q14. ABC Corp manufactures products X45E and K36N. The company uses a plantwide overhead rate based on DLHS (direct labor-hours). It is considering implementing an activity-based costing (ABC) system that allocates its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products X45E and K36N. Activity Cost Pool Activity Measure Total Cost Total Activity Machining Machine setups $ 120,000 $ 90,000 Number of products $ 84,000 $ 300,000 6,000 MHs 150 setups Machine-hours Number of setups 2 products 10,000 DLHS Product design Order size Direct labor-hours Product Activity Measure X45E 4,000 К36N Machine-hours 2,000 Number of setups Number of products Direct labor-hours 90 60 1 1 7,000 3,000 Determine the percentage of the total overhead cost that is allocated to Product K36N using the plantwide overhead rate?
Define cash equivalents.
Larner Corporation is a diversified manufacturer of industrial goods. The company's activity-based costing system contains the following six activity cost pools and activity rates: Activity Cost Pool Labor-related Machine-related Machine setups Production orders. Shipments General factory Activity Rates $ 7.00 per direct labor-hour $ 4.00 per machine-hour $50.00 per setup $ 100.00 per order $ 150.00 per shipment $ 4.00 per direct labor-hour Cost and activity data have been supplied for the following products: Direct materials cost per unit Direct labor cost per unit 378 $ 3.00 $ 3.00 B52 $ 20.00 $ 6.00 2,000 100 Number of units produced per year Total Expected Activity 378 B52 Direct labor-hours. 1,000 20 Machine-hours 2,000 50 Machine setups 6 3 Production orders 5 3 8 3 Shipments Required: Compute the unit product cost of each product listed above. (Do not round intermediate calculations. Round your answers to 2 decimal places.) J78 B52 Unit product cost
A company has provided the following data from its activity-based costing accounting system: Indirect factory wages Factory equipment depreciation S 27,000 $ 204,000 Distribution of Resource Consumption across Activity Cost Pools: Activity Cost Pools Indirect factory wages Factory equipment depreciation Product Processing 48% 25% Customer Orders Other 38 128 Total 100% 100% 63% The "Other" activity cost pool consists of the costs of idle capacity and organization-sustaining costs that are not assigned to products. Required: a. Determine the total amount of indirect factory wages and factory equipment depreciation costs that would be allocated to the Product Processing activity cost pool. b. Determine the total amount of indirect factory wages and factory equipment depreciation costs that would NOT be assigned to products. Complete this question by entering your answers in the tabs below. Required A Required B Determine the total amnount of indirect factory wages and factory equipment…
Heidelberg Fabrication manufactures two products, G-09 and G-35: Units produced Direct materials cost per unit Machine-hours per unit Production runs per quarter Machine depreciation Setup labor Production at the plant is automated and any labor cost is included in overhead. Data on manufacturing overhead at the plant follow: Materials handling Total G-09 19,700 $ 7 4 G-35 3,940 $ 19 7 72 $ 106,380 53,190 42,552 $ 202,122 a. Overhead rate b. Machine depreciation b. Setup labor b. Materials handling Exercise 9-36 (Algo) Activity-Based Costing and Cost Driver Rates (LO 9-4) Required: a. Heidelberg currently applies overhead on the basis of machine-hours. What is the predetermined overhead rate for the quarter? Note: Round your answer to 2 decimal places. b. Heidelberg is thinking of adopting an ABC system. They have tentatively chosen the following cost drivers: machine-hours for machine depreciation, production runs for setup labor, and direct material dollars for materials handling.…

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