Durban Metal Products, Limited, of the Republic of South Africa makes specialty metal parts used in applications ranging from the cutting edges of bulldozer blades to replacement parts for Land Rovers. The company uses an activity-based costing system for internal decision-making purposes. The company has four activity cost pools as listed below: Activity Cost Pool Order size Customer orders. Product testing Selling Activity Measure Number of direct labor-hours Number of customer orders Number of testing hours Number of sales calls. The managing director of the company would like information concerning the cost of a recently completed order for heavy-duty trailer axles. The order required 160 direct labor-hours, 18 hours of product testing, and 4 sales calls. Activity Cost Pool Order size Required: What is the total overhead cost assigned to the order for heavy-duty trailer axles? Customer orders Product testing Selling Total overhead cost Activity Rate $17.90 per direct labor-hour $ 353.00 per customer order $73.00 per testing hour $ 1,497.00 per sales call ABC Cost

Durban Metal Products, Limited, of the Republic of South Africa makes specialty metal parts used in applications ranging from the cutting edges of bulldozer blades to replacement parts for Land Rovers. The company uses an activity-based costing system for internal decision-making purposes. The company has four activity cost pools as listed below: Activity Cost Pool Order size Customer orders. Product testing Selling Activity Measure Number of direct labor-hours Number of customer orders Number of testing hours Number of sales calls. The managing director of the company would like information concerning the cost of a recently completed order for heavy-duty trailer axles. The order required 160 direct labor-hours, 18 hours of product testing, and 4 sales calls. Activity Cost Pool Order size Required: What is the total overhead cost assigned to the order for heavy-duty trailer axles? Customer orders Product testing Selling Total overhead cost Activity Rate $17.90 per direct labor-hour $ 353.00 per customer order $73.00 per testing hour $ 1,497.00 per sales call ABC Cost

Name: savita Durban Metal Products, Limited, of the Republic of South Africa
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Description: savita Durban Metal Products, Limited, of the Republic of South Africa makes specialty metal parts used in applications ranging from thecutting edges of bulldozer blades to replacement parts for Land Rovers. The company uses an activity-based costing

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter4: Activity-based Costing

Section: Chapter Questions

Problem 21E: Bounce Back Insurance Company carries three major lines of insurance: auto, workers compensation,...

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Subject: accounting
Durban Metal Products, Ltd., of the Republic of South Africa makes specialty metal parts used in applications ranging from the cutting edges of bulldozer blades to replacement parts for Land Rovers. The company uses an activity-based costing system for internal decision-making purposes. The company has four activity cost pools as listed below: Activity cost Pool Order size Customer ordera Product testing Selling Activity Measure Number of direct labor-hours Number of customer orders Number of testing hours Number of salea calla Activity Rate 17.50 per direct labor-hour 355.00 per customer order 82.00 per testing hour $1,480.00 per sales call The managing director of the company would like Information concerning the cost of a recently completed order for heavy-duty trailer axles. The order required 150 direct labor-hours, 17 hours of product testing, and 6 sales calls. Required: What is the total overhead cost assigned to the order for heavy-duty traller axles?
Vijay Subject: accounting
Durban Metal Products, Limited, of the Republic of South Africa makes specialty metal parts used in applications ranging from the cutting edges of bulldozer blades to replacement parts for Land Rovers. The company uses an activity-based costing system for internal decision-making purposes. The company has four activity cost pools as listed below: Activity Cost Pool Order size Customer orders. Product testing Selling Activity Measure Number of direct labor-hours Number of customer orders Number of testing hours Number of sales calls Activity Rate $ 18.00 per direct labor-hour $ 357.00 per customer order $ 82.00 per testing hour $ 1,483.00 per sales call The managing director of the company would like information concerning the cost of a recently completed order for heavy-duty trailer axles. The order required 200 direct labor-hours, 13 hours of product testing, and 5 sales calls. Required: What is the total overhead cost assigned to the order for heavy-duty trailer axles? Activity Cost…
Durban Metal Products, Ltd., of the Republic of South Africa makes specialty metal parts used in applications ranging from the cutting edges of bulldozer blades to replacement parts for Land Rovers. The company uses an activity-based costing system for internal decision-making purposes. The company has four activity cost pools as listed below: Activity Cost Pool Activity Measure Activity Rate Order size Number of direct labor-hours $ 16.85 per direct labor-hour Customer orders Number of customer orders $ 320.00 per customer order Product testing Number of testing hours $ 89.00 per testing hour Selling Number of sales calls $ 1,090.00 per sales call The managing director of the company would like information concerning the cost of a recently completed order for heavy-duty trailer axles. The order required 200 direct labor-hours, 4 hours of product testing, and 2 sales calls. Required: What is the total overhead cost assigned to the order for heavy-duty trailer…
Durban Metal Products makes specialty metal parts and uses activity-based costing for internal decision-making purposes. The company has four activity cost pools as follows: Activity Cost Pool Order size Customer orders Product testing Selling Activity Measure Number of direct labor-hours Number of customer orders Number of testing hours Number of sales calls The company's owner wants to know the cost of a customer order requiring 200 direct labor-hours, 11 hours of product testing, and 5 sales calls. Required: What is the total overhead cost assigned to this order? Activity Cost Pool Order size Customer orders Product testing Selling Total overhead cost Activity Rate $ 17.90 per direct labor-hour $ 351.00 per customer order $ 77.00 per testing hour $ 1,496.00 per sales call ABC Cost
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Central Perk, LLC, a manufacturer of coffee beans, is considering switching its operations to an Activity Based Costing system. The following manufacturing overhead activities and cost drivers have been identified: Activity. Machine setup Machine assembly Product inspection Product movement General factory Cost Driver Number of machine setups Machine hours logged Inspection hours logged Number of moves Machine hours logged Based on the above descriptions, which of the following correctly pairs the activity with its appropriate cost level? O A. Product Inspection... batch level cost OB. Product Movement... facility level cost O C. Machine Assembly... unit level cost O D. General Factory... batch level cost O E. Machine Setup... unit level cost
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Schneider Electric manufactures power distribution equipment for commercial customers, such as hospitals and manufacturers. Activity-based costing was used to determine customer profitability. Customer service activities were assigned to individual customers, using the following assumed customer service activities, activity base, and activity rate: Customer Service Activity Activity Base Activity Rate Bid preparation Number of bid requests $400 per request Shipment Number of shipments $80 per shipment Support standard items Number of standard items ordered $25 per standard item Support nonstandard items Number of nonstandard items ordered $150 per nonstandard item Assume that the company had the following gross profit information for three representative customers: Income Statement Item Customer 1 Customer 2 Customer 3 Revenue $120,000 $200,000 $160,000 Cost of goods sold 76,800 110,000 83,200 Gross profit…