Bandolero Corporation has developed ideal standards for four activities: labor, materials, inspection, and receiving. Information is as follows: Activity Activity Driver SQ AQ SP Inspection Inspection hours 0 40,000 $12 Labor Hours 50,000 56,000 18 Materials Pounds 1,00,000 1,05,000 15 Receiving Orders 150 190 450 The actual prices paid per unit of each activity driver were equal to the standard prices. The value-added costs for labor are: a. $900,000 b. $792,000 c. $84,000 d. $75,000

Bandolero Corporation has developed ideal standards for four activities: labor, materials, inspection, and receiving. Information is as follows: Activity Activity Driver SQ AQ SP Inspection Inspection hours 0 40,000 $12 Labor Hours 50,000 56,000 18 Materials Pounds 1,00,000 1,05,000 15 Receiving Orders 150 190 450 The actual prices paid per unit of each activity driver were equal to the standard prices. The value-added costs for labor are: a. $900,000 b. $792,000 c. $84,000 d. $75,000

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter12: Activity-based Management

Section: Chapter Questions

Problem 14E: Sanford, Inc., has developed value-added standards for four activities: purchasing parts, receiving...

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Forner, Inc., manufactures and sells two products: Product Z1 and Product Z8. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Expected Activity Estimated Activity Overhead Activity Cost Pools Measures Cost Product Z1 Product Z8 Total Labor-related $ 124,400 6,000 DLHS 3,000 9,000 Machine setups setups 58,660 700 600 1,300 Order size MHs 917,480 3,800 3,000 6,800 $1,100,540 The activity rate for the Order Sıze activity cost pool under activity-based costing is closest to: Multiple Cholce $59.53 per MH $193.87 per MH $143.55 per MH $134.92 per MH
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