Exercise 12.14 Cost Report, Value-Added and Non-Value-Added Costs Sanford, Ic., has developed value-added standards for four activities: purchasing parts, receiv- ing parts, moving parts, and setting up equipment. The activities, the activity drivers, the standard and actual quantities, and the price standards for 20xl are as follows: so Activities Activity Driver AQ SP 2,600 Purchasing parts Receiving parts Moving parts Setting up equipment 3,640 7,800 2,600 Purchase orders S300 195 Receiving orders Number of moves 5,200 390 Setup hours 10,400 117 The actual prices paid per unit of each activity driver were equal to the standard prices. Required: 1. Prepare a cost report that lists the value-added, non-value-added, and actual costs for each activity. 2. Which activities are non-value-added? Explain why. Also, explain why value-added activ- ities can have non-value-added costs.

Exercise 12.14 Cost Report, Value-Added and Non-Value-Added Costs Sanford, Ic., has developed value-added standards for four activities: purchasing parts, receiv- ing parts, moving parts, and setting up equipment. The activities, the activity drivers, the standard and actual quantities, and the price standards for 20xl are as follows: so Activities Activity Driver AQ SP 2,600 Purchasing parts Receiving parts Moving parts Setting up equipment 3,640 7,800 2,600 Purchase orders S300 195 Receiving orders Number of moves 5,200 390 Setup hours 10,400 117 The actual prices paid per unit of each activity driver were equal to the standard prices. Required: 1. Prepare a cost report that lists the value-added, non-value-added, and actual costs for each activity. 2. Which activities are non-value-added? Explain why. Also, explain why value-added activ- ities can have non-value-added costs.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

None
:14 es Howell Corporation's activity-based costing system has three activity cost pools-Machining, Setting Up, and Other. The company's overhead costs, which consist of equipment depreciation and indirect labor, are allocated to the cost pools in proportion to the activity cost pools' consumption of resources. Equipment depreciation (total) Indirect labor (total) Distribution of Resource Consumption Across Activity Cost Pools Setting Up 0.30 0.10 Equipment depreciation Indirect labor Product S4 Product CO Total Costs in the Machining cost pool are assigned to products based on machine-hours (MHS) and costs in the Setting Up cost pool are assigned to products based on the number of batches. Costs in the Other cost pool are not assigned to products. Sales (total) Direct materials (total) Direct labor (total) $ 33,800 $ 7,950 MHS 8,900 6,300 15,200 Required A Machining 0.30 0.30 Additional data concerning the company's products appears below: Product S4 Product Co $ 88,100 $ 75,500 $…
Solve Required 1 Only
vi.4
Part B: Compute the cost per equivalent unit fir direct materials and conversion costs Please avoid solutions image based solutions thanku
I need a step by step please
1
Question 19?
question 2
3
Exercise 5-11A Allocating facility-level costs and a product elimination decision Blevins Boards produces two kinds of skateboards. Selected unit data for the two boards for the last quarter follow. Production costs Direct materials Direct labor Allocated overhead Total units produced and sold Total sales revenue Basco Boards Shimano Boards Required a. Compute the per-unit cost for each product. b. Compute the profit for each product. $25 $32 $15 5,000 $ 500,000 $38 $54 $18 10,000 $1,400,000 Blevins allocates production overhead using activity-based costing. It allocates delivery expense and sales commissions, which amount to $54,000 per quarter, to the two products equally.
Exercise 17-12 (Algo) Cost drivers for activity-based costing LO P3 A manufacturer reports three activities: finishing production; product design; and sales order processing. Determine whether each of the following cost drivers relates to finishing production, design, or order processing. Cost Driver 1. Direct labor hours to finish production 2. Number of design changes 3. Finishing machine hours 4. Number of design hours 5. Number of shipments made 6. Number of sales orders processed Activity