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b. Calculate the total cost of each job using activity-based costing. (Do not round intermediate calculations and round answers nearest to whole number.) Answer is complete but not entirely correct. School Residential Cinema Total cost 474,677 486,752 659,725

b. Calculate the total cost of each job using activity-based costing. (Do not round intermediate calculations and round answers nearest to whole number.) Answer is complete but not entirely correct. School Residential Cinema Total cost 474,677 486,752 659,725

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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2. Tyler Case, the company's CEO, recently returned from a seminar on activity-based costing and instructed Kalagnanam to consider Implementing the new system. As a first step, he instructed her to analyze the overhead costs for 2021. Through her research she was able to derive the following breakdown of the estimated overhead costs for 2021 Activity Volume Activity Foundation laying Building construction Paint ing Finishing Amount $ 1,830,500 1,740, 000 1,892,000 2,437,500 Activity Measure Foundation-laying hours Construction labour-hours Painting-hours Finishing-hours 425,700 500,000 550,000 750, 000 She also documented the following activity on the three jobs during the first quarter of 2021 (in addition to the construction labour- hours consumed by the three jobs) Foundat ion-laying hours Painting-hours Finishing-hours Schfool Residential 39, 550 49, 380 41,460 38,500 36, 120 60,600 Cinena 44,250 47,660 94,000 a. Calculate the activity rates for each of the four activities (Round your answers to 2 decimal places.) Answer is complete and correct. Activity Rate per FLH per CLH 3.44 O per PH Activity Foundation laying 4 30 Building construction 3 48 Painting Finishing 3 25 O per FH
Transcribed Image Text:2. Tyler Case, the company's CEO, recently returned from a seminar on activity-based costing and instructed Kalagnanam to consider Implementing the new system. As a first step, he instructed her to analyze the overhead costs for 2021. Through her research she was able to derive the following breakdown of the estimated overhead costs for 2021 Activity Volume Activity Foundation laying Building construction Paint ing Finishing Amount $ 1,830,500 1,740, 000 1,892,000 2,437,500 Activity Measure Foundation-laying hours Construction labour-hours Painting-hours Finishing-hours 425,700 500,000 550,000 750, 000 She also documented the following activity on the three jobs during the first quarter of 2021 (in addition to the construction labour- hours consumed by the three jobs) Foundat ion-laying hours Painting-hours Finishing-hours Schfool Residential 39, 550 49, 380 41,460 38,500 36, 120 60,600 Cinena 44,250 47,660 94,000 a. Calculate the activity rates for each of the four activities (Round your answers to 2 decimal places.) Answer is complete and correct. Activity Rate per FLH per CLH 3.44 O per PH Activity Foundation laying 4 30 Building construction 3 48 Painting Finishing 3 25 O per FH
b. Calculate the total cost of each job using activity-based costing (Do not round intermediate calculations and round your final answers nearest to whole number.) Answer is complete but not entirely correct. School Residential Cinema Total cost 474,677 OS 486,752 659,725
Transcribed Image Text:b. Calculate the total cost of each job using activity-based costing (Do not round intermediate calculations and round your final answers nearest to whole number.) Answer is complete but not entirely correct. School Residential Cinema Total cost 474,677 OS 486,752 659,725
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