Current Attempt in Progress Karen is the controller for Crane Inc., a company that produces ice cream and specializes in dairy-free versions of the Cookie Dough and Rocky Road flavors. Karen has recommended that Crane implement Activity-Based Costing (ABC) as they gear up to produce the following number of pints in the coming year: Cookie Dough, 97000 pints; and Rocky Road, 87000 pints. Karen believes that a traditional costing system has not been the most effective manner to allocate their Manufacturing Overhead (MOH) costs. She has compiled the following data about the usage of their company resources: Item Cookie Dough Rocky Road Pounds of Ingredients Moved Moving and Sorting Ingredients Cleaning and Maintenance Quality Control Supervisor Wages 5100 Their MOH is comprised of the following costs: O $1.45 O $1.44 O $0.93 O $1.60 3600 Cleaning/Maintenance Hours $77000 (8700 pounds) $47000 (6050 hours) $28150 (9600 inspections) $107330 (4400 hours) 3550 2500 # of Inspections 6300 3300 Supervisor Hours 2000 2400 What is the ABC-based total MOH cost allocated per unit for Cookie Dough ice cream? (If necessary, round intermediate calculations to 2 decimal places, e.g. 12.25.)
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
Ef 601.
![Current Attempt in Progress
Karen is the controller for Crane Inc., a company that produces ice cream and specializes in dairy-free versions of the Cookie Dough
and Rocky Road flavors. Karen has recommended that Crane implement Activity-Based Costing (ABC) as they gear up to produce the
following number of pints in the coming year: Cookie Dough, 97000 pints; and Rocky Road, 87000 pints. Karen believes that a
traditional costing system has not been the most effective manner to allocate their Manufacturing Overhead (MOH) costs. She has
compiled the following data about the usage of their company resources:
Item
Cookie Dough
Rocky Road
Pounds of Ingredients Moved
Moving and Sorting Ingredients
Cleaning and Maintenance
Quality Control
Supervisor Wages
5100
Their MOH is comprised of the following costs:
O $1.45
O $1.44
O $0.93
O $1.60
3600
Cleaning/Maintenance Hours
$77000 (8700 pounds)
$47000 (6050 hours)
$28150 (9600 inspections)
$107330 (4400 hours)
3550
2500
# of Inspections
6300
3300
Supervisor Hours
2000
2400
What is the ABC-based total MOH cost allocated per unit for Cookie Dough ice cream? (If necessary, round intermediate calculations to 2
decimal places, e.g. 12.25.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fdca5881b-bb4b-4428-be0f-5030f3c439d6%2F41044f14-c07c-4527-b7d9-7bca19f3ab79%2Fbtmtjp_processed.jpeg&w=3840&q=75)
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