Countryside Bank uses activity-based costing to determine the cost of servicing customers. There are three activity pools: teller transaction processing ($2.55 per teller transaction), check processing(50.10 per canceled check), and ATM transaction processing (50.20 per ATM transaction). Rosa Bush had 5 teller transactions, 10 canceled checks, and 7 ATM transactions during the month. What is thetotal monthly activity-based cost for Rosa Bush during the month?a $32.90O b. $15.15$9.754 $24.75

Activity Rate :— It is the rate used to allocate activity cost to cost object under activity based…

Answered: Countryside Bank uses activity-based…

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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For a table manufacturing company, selling price for a table is $22.00 per Unit, Variable cost is $6.00 per Unit, labor charge is $1.00 per Unit, rent is $515.00 per month and transportation is $1 per tables. If 337.00 tables are sold in a month how much revenue company earns for that month? 2:You run a hospital with 100 rooms. Fixed daily cost is $818.00 which includes staff salary, property charges, maintenance etc. Variable cost per room is $12.00 which includes cleaning, equipment rentals, utility cost etc. which is incurred only when the room is full. You charge $58.00 per room per day. You sold 31.00 rooms today, how much profit/loss did you earn for today.
What are Jenny’s fixed costs for the month? Jenny’s Cutting Station offers a new concept in haircuts; low cost and very quick. Set in a local mall, Jenny’s offers 15-minute haircuts with a shampoo for harried shoppers who do not have time for lengthy appointments. To ensure that the clients are in and out quickly, Jenny schedules her 5 employees based on expected client traffic. Each of the employees is paid $1200 per month, with part of their pay coming from client tips. Jenny pays rent and overhead costs of $2000 per month for the facility. Because of the quick nature of the service, Jenny doesn’t have time to clean combs in between clients, so she uses a new comb for each customer, at a cost of $0.55 each. She also provides shampoo and conditioner for each client at a cost of $0.95 per client. The average price for a haircut is $12. Jenny pays herself $5000 per month.
Via Gelato is a popular neighborhood gelato shop. The company has provided the following cost formulas and actual results for the month of June: Revenue Raw materials Wages Utilities Rent Insurance Miscellaneous Revenue Expenses: Fixed Element per Month Raw materials Wages Utilities Rent $ 6,500 $ 2,530 $3,500 $2,250 $ 740 Insurance Miscellaneous While gelato is sold by the cone or cup, the shop measures its activity in terms of the total number of liters of gelato sold. For example, wages should be $6,500 plus $2.30 per liter of gelato sold and the actual wages for June were $21,300. Via Gelato expected to sell 6,400 liters in June, but actually sold 6,600 liters. Total expense Net operating income Variable Element per Actual Total Liter for June $ 21.00 $ 133,540 $ 5.55 $ 37,130 $ 21,300 $ 10,000 Required: Calculate Via Gelato revenue and spending variances for June. (Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect…
Jake's Roof Repair has provided the following data concerning its costs: Fixed Cost per Month $ 20,900 Cost per Repair-Hour. $ 15.00 $ 7.78 $8.35 $ 1.80 Wages and salaries. Parts and supplies Equipment depreciation Truck operating expenses Rent Administrative expenses For example, wages and salaries should be $20,900 plus $15.00 per repair-hour. The company expected to work 2,500 repair-hours In May, but actually worked 2,400 repair-hours. The company expects its sales to be $45.00 per repair-hour. Revenue Expenses: $ 2,760 $ 5,790 $ 4,640 $ 3,850 Required: Compute the company's activity variances for May. (Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (l.e., zero variance). Input all amounts as positive values.) Jake's Roof Repair Activity Variances For the Month Ended May 31 Wages and salaries Parts and supplies Equipment depreciation Truck operating expenses Rent Administrative expenses Total expense Net operating…
Adelphia Brokers, a full service brokerage house, brought in William N. Thomas, a specialist in financial stock, to meet with their 15 brokers. Mr. Thomas charged a fee of $2,500 for the 4-hour session. The average hourly rate for the 15 brokers was $50.00 per hour. Lunch for the 15 brokers and Mr. Thomas was $14.50 per person. What was the total cost for the 4-hour financial stock training session?
Harmon Recycling Services (HRS), a not-for-profit organization, has two drop-off centers, Westside and Eastside. Data for the expected operation in the next quarter follow. Clients Revenues Staff hours Staff costs General operating costs Required: Eastside 25,000 $ 660,000 8,100 $ 99,000 Required A Required B Westside 6,250 $ 440,000 2,700 $ 198,000 a. Compute the predetermined overhead rate used to apply general operating costs to the two centers assuming HRS uses revenue to allocate general operating costs. b. Based on the rates computed in requirement (a), what is the expected surplus (revenues less costs) for each center? Complete this question by entering your answers in the tabs below. Predetermined overhead rate Total 31,250 $ 1,100,000 10,800 $ 297,000 $ 660,000 Compute the predetermined overhead rate used to apply general operating costs to the two centers assuming HRS uses revenue to allocate general operating costs. % of revenue
Colleen Company has gathered the following data pertaining to activities it performed for two of its major customers. Number of orders Units per order Sales returns: Number of returns. Total units returned. Number of sales calls Activity Sales calls Order processing Deliveries Sales returns Sales salary Colleen sells its products at $200 per unit. The firm's gross margin ratio is 25%. Both Jerry and Kate pay their accounts promptly and no accounts receivable is over 30 days. After using business analytics software to carefully analyze the operating data for the past 30 months, the firm has determined the following activity costs: Required 1 Required 2 Jerry, Inc. Kate Co. 5 1,000 Customer unit level costs: Required: 1. Using customers as the cost objects, classify the activity costs into cost categories (unit-level, batch-level, etc.) and compute the total cost for Colleen Company to service Jerry, Inc. and Kate Co. 2. Compare the profitability of these two customers. Customer batch…
How should be the procedure for this questions. Please Scenario: Digital Fingers Glovers bought 378 pairs of gloves at $26 per pair. 220 pairs were sold in the first month, at the regular price of $42 per pair. Another 64 pairs were sold in the second month at a "one-third-off" the regular selling price. The remaining gloves were cleared out in the third month at $16.68. The store's overhead is 17% of cost. 1. What were the total sales? 2. What was the effective rate of markup as a percent of cost? 3. What was the total operating profit or loss on the sale of all of the gloves?
A regional supermarket chain has 12 stores across the midlands. Due to the nature of their business staff costs are a significant item on their income statement. Currently each store pays its staff £8 per hour based on the weekly time sheets they fill in. These time sheets are signed off by the store managers and sent to the central finance team who process the monthly staff payments. A central finance officer prepares two payment runs each month, one for the hourly paid staff, the other for the salaried staff including the store managers and the central finance and other central department staff. Both payment runs are automatically checked against a database of active staff that is managed by the finance officer responsible for the payment run. This payment run is then signed off by the finance director, although due to the size of the report and the other controls already in place this is not a detailed review. All new starter and leaver documentation is held separately to the…
Corazon Manufacturing Company has a purchasing department staffed by five purchasingagents. Each agent is paid $28,000 per year and is able to process 4,000 purchase orders. Lastyear, 17,800 purchase orders were processed by the five agents.Required:1. Calculate the activity rate per purchase order.2. Calculate, in terms of purchase orders, the:a. total activity availabilityb. unused capacity3. Calculate the dollar cost of:a. total activity availabilityb. unused capacity4. Express total activity availability in terms of activity capacity used and unused capacity. 5. What if one of the purchasing agents agreed to work half time for $14,000? How many pur-chase orders could be processed by four and a half purchasing agents? What would unused capacity be in purchase orders?
Tucker Pup's Pet Resort offers dog boarding services in Chicago. Assume that in March, when dog- days occupancy was at an annual low of 150 days, the average cost per dog-day was $65. In July, when dog-days were at a capacity level of 600, the average cost per dog-day was $20. a. Develop an equation for monthly operating costs. b.Determine the average boarding cost per dog-day at an annual volume of 4,500 dog-days.
The Oriole Inn is trying to determine its break-even point. The inn has 75 rooms that are rented at $56 a night. Operating costs are as follows. Salaries Utilities Maintenance Depreciation 1,300 Maid service $5,800 Other costs 2.700 700 8 34 per month per month per month per month per room. per room

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