CPA Corp. has provided the following data from its activity-based costing system:Activity Cost PoolInspectionProcessing OrdersAssemblyTotal Activity1,410 inspection hours1,600 orders28,000 machine hoursTotal CostP82,767P60,896P436,240The company makes 230 units of product of WD40 a year, requiring a total of 480machine-hour, 50 orders, and 30 inspection-hours per year. The product's directmaterials costs are P12.70 per unit and its direct labor cost is P45.93 per units. Theproduct sells for P126.60 per unit.Using activity-based costing system, compute the product margin of WD40 per unit.

Here in this question, we are required to compute margin of product WD40 per unit. Activity based…

Answered: CPA Corp. has provided the following…

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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Rustafson Corporation is a diversified manufacturer of consumer goods. The company's activity-based costing system has the following seven activity cost pools: Activity Cost Pool Estimated Overhead Cost Expected Activity Labor-related $ 22,000 1,000 direct labor-hours Machine-related $ 10,000 8,000 machine-hours Machine setups $ 36,000 800 setups Production orders $ 29,400 600 orders Product testing $ 27,900 900 tests Packaging $ 68,400 3,600 packages General factory $ 56,800 1,000 direct labor-hours Required: 1. Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal places.) Activity Cost Pool Activity Rate Labor-related per DLH Machine-related per MH Machine setups per setup Production orders per order Product testing per test Packaging per package General factory per DLH
The following table presents the activities and activity drivers that LampPlus uses in manufacturing Product 1 and Product 2. Complete the table: Activity Design Preparation Machining Finishing Inspection Packaging Shipping Cost Activity Driver $ 39,060 Design time $ 67,650 Labor hours 105,200 Machine hours $ Batches Units Orders $ 12,720 Packages Driver Usage Prod. 1 840 3,130 209 76 Prod. 2 1,330 hours hours 300 56 Activity Rate $ $ $ $ /hour /hour 20 /hour 50 /batch 17 /unit 302 /order /package Activity Cost:Prod. 1 $ $ $ $ 34,430 31,200 Activity Cost:Prod. 2 9,690 $ 12,986 $ 19,720 3,600
Klumper 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 Supporting direct labor Machine processing Machine setups Production orders. Shipments Product sustaining Activity data have been supplied for the following two products: Total Expected Activity Activity Rates $ 7 per direct labor-hour $ 4 per machine-hour $50 per setup $ 170 per order $ 130 per shipment $ 800 per product Number of units produced per year Direct labor-hours Machine-hours Machine setups Production orders Shipments Product sustaining K425 200 1,075 2,200 11 11 22 2 M67 2,000 40 30 2 2 2 2 Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system?
Paparo Corporation has provided the following data from its activity-based costing system: Total Cost $1,005,000 Activity Cost Pool Assembly Processing orders Inspection Data concerning the company's product Q79Y appear below: Annual unit production and sales Annual machine-hours Annual number of orders Annual inspection hours Direct materials cost Direct labor cost Multiple Choice $168.52 per unit Total Activity 60,000 machine-hours 2,200 orders $ 83,930 $ 106,960 1,400 inspection-hours According to the activity-based costing system, the average cost of product Q79Y is closest to: $96.25 per unit $131.30 per unit O $151.15 per unit 350 1,100 100 40 $55.00 per unit $41.25 per unit
Maxey & Sons manufactures two types of storage cabinets—Type A and Type B—and applies manufacturing overhead to all units at the rate of $120 per machine hour. Production information follows. Type A Type BAnticipated volume (units) 24,000 45,000 Direct-material cost per unit $ 28 $ 42 Direct-labor cost per unit 33 33 The controller, who is studying the use of activity-based costing, has determined that the firm’s overhead can be identified with three activities: manufacturing setups, machine processing, and product shipping. Data on the number of setups, machine hours, and outgoing shipments, which are the activities’ three respective cost drivers, follow. Type A Type B TotalSetups 140 100 240 Machine hours 48,000 67,500 115,500 Outgoing shipments 200 150 350 The firm’s total…
Feldpausch Corporation has provided the following data from its activity-based costing system: Activity Cost Pool Total Cost Total Activity Assembly $ 1,398,250 65,800 machine-hours Processing orders $ 69,451 2,520 orders Inspection $ 184,800 2,400 inspection-hours The company makes 920 units of product W26B a year, requiring a total of 1,290 machine-hours, 61 orders, and 40 inspection-hours per year. The product's direct materials cost is $57.55 per unit and its direct labor cost is $13.56 per unit. The product sells for $123.50 per unit. According to the activity-based costing system, the product margin for product W26B is: (Round your intermediate calculations and final answers to 2 decimal places.)
A company has provided the following data from its activity-based costing system: Activity Cost Pool Total Cost Total Activity Assembly Processing orders $70,578.60 $1,586,690 66,500 machine-hours 2,370 orders Inspection $124,500 1,660 inspection- hours The company makes 600 units of product A a year, requiring a total of 2,030 machine- hours, 108 orders, and 33 inspection-hours per year. The product's direct materials cost is $52.59 per unit and its direct labor cost is $19.32 per unit. The product sells for $175.60 per unit. According to the activity-based costing system, the product margin for product A is: (Round your intermediate calculations to 2 decimal places.) Multiple Choice $10,561.96 $8.086.96 $11,303.20 $62.214.00
Fisher Fixtures manufactures three types of lighting fixtures, with model names of Silver, Gold, and Platinum. It applies all indirect costs according to an annual predetermined rate based on direct labor-hours. The plant controller has recommended that the company switch to an activity-based costing system. The controller's staff prepared the following cost estimates for next year (year 2) for the recommended cost drivers. Activity Recommended Cost Driver Estimated Cost Estimated Cost Driver Activity Purchasing material Number of purchase orders $ 130,800 240 purchase orders Receiving material Direct materials cost 238,400 $ 2,980,000 Setting up equipment Number of production runs 231,840 120 runs Machine depreciation and maintenance Machine-hours 80,260 16,052 hours Ensuring regulatory compliance Number of inspections 459,000 54 inspections Shipping Number of units shipped 1,087,200 604,000 units Total estimated cost $ 2,227,500 In addition, management…
A
Klumper 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 Supporting direct labor. Machine processing Machine setups Production orders $ 160 per order Shipments $125 per shipment Product sustaining $850 per product Activity data have been supplied for the following two products: Number of units produced per year. Direct labor-hours Machine-hours Machine setups Production orders Shipments Product sustaining Activity Rates $ 11 per direct labor-hour $2 per machine-hour $50 per setup Activity Cost Pool Supporting direct labor Machine processing Machine setups Production orders Shipments Product sustaining Total overhead cost K425 Total Expected Activity K425 M67 2,000 M67 200 1,150 3,200 15 15 30 3 Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system? 40 30 3 3 3 3
XYZ has provided the following data from its activity-based costing system: Activity Cost Pool Total Cost Total Activity Assembly $ 228,060 18,000 machine-hours Processing orders $ 34,068 1,600 orders Inspection $ 125,560 1,720 inspection hours The company makes 420 units of product YBY a year, requiring a total of 460 machine-hours, 80 orders, and 10 inspection hours per year. The product's direct materials cost is $48.96 per unit and its direct labor cost is $25.36 per unit. According to the activity-based costing system, the average cost of product YBY is closest to: O a. $94.26 per unit O b. None of the given answer is correct. Oc $94.00 per unit O d. $95.77 per unit O e $93.99 per unit CLEAR MY CHOICE
Klumper 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 Activity Rates Supporting direct labor $ 8 per direct labor-hour Machine processing $ 4 per machine - hour Machine setups $ 40 per setup Production orders $ 150 per order Shipments $ 120 per shipment Product sustaining $ 900 per product Activity data have been supplied for the following two products: Total Expected Activity K425 -M67 Number of units produced per year 200 2,000 Direct labor-hours 925 40 Machine - hours 2, 600 30 Machine setups 11 1 Production orders 11 1 Shipments 22 1 Product sustaining 1 1

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