Bennette Corporation has provided the following data concerning its overhead costs for the coming year: Wages and salaries Depreciation $ 530,000 215,000 235,000 $ 980,000 Rent Total The company has an activity-based costing system with the following three activity cost pools and estimated activity for the coming year: Activity Cost Pool Total Activity labor- Assembly Order processing Other applicable The Other activity cost pool does not have a measure of activity, it is used to accumulate costs of idle capacity and organization-sustaining ca The distribution of resource consumption across activity cost pools is given below: Wages and salaries Depreciation 35,000 hours 450 orders Not Rent Activity Cost Pools Assembly Order Processing 35% 30% 10% 40% 30% 25% The activity rate for the Order Processing activity cost pool is closest to: Other 35% 50% 45% Total 100% 100% 100%

Bennette Corporation has provided the following data concerning its overhead costs for the coming year: Wages and salaries Depreciation $ 530,000 215,000 235,000 $ 980,000 Rent Total The company has an activity-based costing system with the following three activity cost pools and estimated activity for the coming year: Activity Cost Pool Total Activity labor- Assembly Order processing Other applicable The Other activity cost pool does not have a measure of activity, it is used to accumulate costs of idle capacity and organization-sustaining ca The distribution of resource consumption across activity cost pools is given below: Wages and salaries Depreciation 35,000 hours 450 orders Not Rent Activity Cost Pools Assembly Order Processing 35% 30% 10% 40% 30% 25% The activity rate for the Order Processing activity cost pool is closest to: Other 35% 50% 45% Total 100% 100% 100%

Name: Multiple Choice$685 per order$675 per order$544 per order$665 per ord
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Description: Multiple Choice$685 per order$675 per order$544 per order$665 per order Bennette Corporation has provided the following data concerning its overhead costs for the coming year:Wages and salaries.Depreciation$ 530,000215,000235,000$ 980,000RentTotalTh

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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Baja Industries has recently switched its method of applying manufacturing overhead from a single predetermined overhead rate based on direct labor hours to activity-based costing (ABC). Assume that the direct labor rate is $18.00 per hour and that there were no beginning inventories. The following cost drivers and rates have been developed for allocating manufacturing overhead costs: Activity Cost Driver Rate Material handling Number of parts used $ 2.00 per part Assembly and inspection Number of direct labor hours $25.00 per DLH Testing Number of units tested $ 5.00 per unitThe following production, costs, and activities occurred during the month of August: Direct…
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Lion 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--Machining, Order Filling, and Other--based on resource consumption. Data to perform these allocations appear below: Overhead costs: Equipment depreciation Supervisory expense Equipment depreciation Distribution of Resource Consumption Across Activity Cost Pools: Product C9 $ 47,000 Product UO $ 6,000 Total Supervisory expense 0.60 Activity Cost Pools O $18.00 per MH O $5.30 per MH O $2.82 per MH O $3.18 per MH Mac 0.60 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: 6,900 Order Filling 3,100 0.10 MHS (Machining) 10,000 b.20 200…
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Assume a company that uses activity-based costing (ABC) has only two products – A and B. The company does not have any organization-sustaining activities or unused capacity costs. The company’s total manufacturing overhead cost of $56,000 has been allocated to the three activities shown below: Setups Machining Packing Orders Activity measure quantity: Product A 20 1,000 150 Activity measure quantity: Product B 20 ? 350 Overhead cost per activity cost pool ? ? $ 10,000 Activity rate $ 150 per setup $ 8 per MH ? How many machine-hours were consumed by Product B? Multiple Choice 4,000 5,000 3,000 2,000
Multiple Choice $9,907.97 $89,171.73 $5,173.02 $136.51