Equipment depreciation Supervisory expense Machining 0.50 0.50 Product Wi Product Me Total Activity Cost Pools Order Filling MHs (Machining) 5,540 15,800 21,340 0.30 0.20 in the second stage. Machining costs are assigned to products using machine-hours (Mi-Is) and Order Filling costs are assigned to products using the number of orders. The costs in the Other activity cost pool are not assigned to products. Activity: Other 0.20 0.30 Orders (Order Filling) 142 924 1,066 Finally, sales and direct cost data are combined with Machining and Order Filling costs to determine product margins Sales and Direct Cost Data Product Ho Sales (total) Product Wi $ 73,000 $ 37,900 Direct materials (total) $ 63,000 $19,600 Direct labor (total) $ 16,900 $ 35,100 What is the product margin for Product Wt under activity based costing? (Round your intermediate calculations to 2 decimal places)
Equipment depreciation Supervisory expense Machining 0.50 0.50 Product Wi Product Me Total Activity Cost Pools Order Filling MHs (Machining) 5,540 15,800 21,340 0.30 0.20 in the second stage. Machining costs are assigned to products using machine-hours (Mi-Is) and Order Filling costs are assigned to products using the number of orders. The costs in the Other activity cost pool are not assigned to products. Activity: Other 0.20 0.30 Orders (Order Filling) 142 924 1,066 Finally, sales and direct cost data are combined with Machining and Order Filling costs to determine product margins Sales and Direct Cost Data Product Ho Sales (total) Product Wi $ 73,000 $ 37,900 Direct materials (total) $ 63,000 $19,600 Direct labor (total) $ 16,900 $ 35,100 What is the product margin for Product Wt under activity based costing? (Round your intermediate calculations to 2 decimal places)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Do not give answer in image
Transcribed Image Text:Equipment depreciation
Supervisory expense
Activity:
Product Wi
Product Me
Total
Activity Cost Pools
Machining Order Filling
0.50
0.50
In the second stage, Machining costs are assigned to products using machine-hours (MH-s) and Order Filling costs are assigned to products using the number
of orders. The costs in the Other activity cost pool are not assigned to products.
MHs (Machining)
5,540
15,800
21,340
0.30
0.20
Other
0.20
0.30
Orders (Order
Filling)
142
924
1,066
Finally, sales and direct cost data are combined with Machining and Order Filling costs to determine product margins
Sales and Direct Cost Data:
Product Wi
Product Ho
Sales (total)
$ 73,000
$ 63,800
Direct materials (total).
$ 37,900
$ 19,600
Direct labor (total)
$ 16,300
$ 35,100
What is the product margin for Product Wt under activity based costing? (Round your intermediate calculations to 2 decimal places)
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education