Culver Corp. produces two different products (Product X1 and Product Y2) using two different activities: Machining (which uses machine hours as an activity driver) and Inspection (which uses number of batches as an activity driver). The activity drivers are used as follows: Product X1 Product Y2 Total Activity Driver Machine Hours 1.800 Number of Batches 55 4.200 30 6.000 85 The activity rate for Inspection is $625 per batch. What is the total cost of Inspection?

Culver Corp. produces two different products (Product X1 and Product Y2) using two different activities: Machining (which uses machine hours as an activity driver) and Inspection (which uses number of batches as an activity driver). The activity drivers are used as follows: Product X1 Product Y2 Total Activity Driver Machine Hours 1.800 Number of Batches 55 4.200 30 6.000 85 The activity rate for Inspection is $625 per batch. What is the total cost of Inspection?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter4: Activity-based Costing

Section: Chapter Questions

Problem 4CE: Larsen, Inc., produces two types of electronic parts and has provided the following data: There are...

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Saved Lynwood, Inc. produces two different products (Product A and Product X) using two different activities: Machining, which uses machine hours as an activity driver, and Inspection, which uses number of batches as an activity driver. The activity rate for Machining is $180 per machine hour, and the activity rate for Inspection is $540 per batch. The activity drivers are used as follows: Product A Product X Total Machine hours 1,400 3,100 4,500 Number of batches 47 18 65 15 What is the amount of Inspection cost assigned to Product A? Multiple Cholce $9.720 $25,380 $252,000
Lynwood, Inc. produces two different products (Product activity driver, and Inspection, which uses number of batches as an activity driver. The activity rate for Machining is $180 per machine hour, and the activity rate for Inspection is $580 per batch. The activity drivers are used as follows: and Product X) using two different activities: Machining, which uses machine hours as an Product A Product X Total 1,200 Machine hours 3,200 4,400 Number of batches 55 18 73 What is the amount of Inspection cost assigned to Product X? Multiple Choice $31,900 $42,340 $216,000 $10,440 MacBook Pro ** 888 & 23 8 3 E R T Y P Q W J K > C V M command optio command
Howden, Incorporated, manufactures and sells two products: Product P5 and Product S9. Data concerning the expected production of each product and the expected total direct labor-hours (DLHS) required to produce that output appear below: Product P5 Product S9 Activity Cost Pools Labor-related Saved Machine setups Order size Direct Labor- Expected Hours Per Production Unit 300 7.0 900 4.0 Product P5 Product S9 Total direct labor-hours The direct labor rate is $25.70 per DLH. The direct materials cost per unit for each product is given below: Direct Materials Cost per Unit $ 248.50 $ 294.80 Activity Measures DLHS setups MHS Total Direct Labor- The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Expected Activity Estimated Overhead Cost $ 247,152 28,990 519,241 $ 795,383 Which of the following statements concerning the unit product cost of Product S9 is true? (Round your intermediate…
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Larsen, Inc., produces two types of electronic parts and has provided the following data: Part X12 Part YK7 Total Units produced 100,000 600,000 — Direct labor hours 30,000 70,000 100,000 Machine hours 50,000 300,000 350,000 Number of setups 40 80 120 Testing hours 1,000 9,000 10,000 Number of purchase orders 500 3,500 4,000 There are four activities: machining, setting up, testing, and purchasing. Required: Calculate the activity consumption ratios for each product. Calculate the consumption ratios for the plantwide rate (direct labor hours). When compared with the activity ratios, what can you say about the relative accuracy of a plant wide rate? Which product is under costed? What if the machine hours were used…
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