A 162. Flynn Industries has three activity cost pools and two products. It estimates production 2,000 units of Product BC113 and 1,000 ofProduct AD908. Having identified its activity cost pools and the cost drivers for each pool, Flynn accumulated the following datarelative to those activity cost pools and cost drivers.Activity Cost PoolsMachine setupMachiningPackingUsing the above data, do the following:MachinesetupAnnual Overhead DataActivityCostPoolsMachiningPacking$Your answer is partially correct.$Cost Drivers$SetupsMachine hours$OrdersCostAssignedEstimatedOverheadeTextbook and MediaPrepare a schedule showing the computations of the activity-based overhead rates per cost driver.* Your answer is incorrect.2200088020Overhead cost per unit $33660EstimatedOverhead143680$22,00088,02033,660BC113Estimated Use ofCost Drivers per ProductEstimated Use of CostDrivers per ActivityEstimated Use of CostDrivers per ProductEstimated Use of CostDrivers per ActivityPrepare a schedule assigning each activity's overhead cost to the two products.444890$4,89044510setupsmachinehours510 ordersAD908ProductBC113AD9081,200Activity-BasedOverhead Rates19021$$Compute the overhead cost per unit for each product. (Round answers to 2 decimal places, e.g. 12.25.)$ProductAD908$23$3,690Activity-BasedOverhead Rates320CostAssignedpersetuppermachinehr.perorder

The activity-based costing method is applied for allocating the overhead expenses to product(s).…

Flynn Industries has three activity cost pools and two products. It estimates production 2,000 units of Product BC113 and 1,000 of Product AD908. Having identified its activity cost pools and the cost drivers for each pool, Flynn accumulated the following data relative to those activity cost pools and cost drivers. Activity Cost Pools Machine setup Machining Packing Annual Overhead Data Using the above data, do the following: Activity Cost Pools - Your answer is partially correct. Machine setup Machining Packing Cost Drivers Setups Machine hours Orders $ $ Estimated Overhead 22000 88020 33660 Estimated Overhead $22,000 143680 88,020 Prepare a schedule showing the computations of the activity-based overhead rates per cost driver. 33,660 Estimated Use of Cost Drivers per Product Estimated Use of Cost Drivers per Activity 44 44 4,890 Estimated Use of Cost Drivers per Activity 4890 510 Product BC113 machine hours 510 orders 1,200 setups $ 190 21 $ $ Product AD908 23 3,690 320 Activity-Based Overhead Rates per setup per machine hr. per order

Flynn Industries has three activity cost pools and two products. It estimates production 2,000 units of Product BC113 and 1,000 of Product AD908. Having identified its activity cost pools and the cost drivers for each pool, Flynn accumulated the following data relative to those activity cost pools and cost drivers. Activity Cost Pools Machine setup Machining Packing Annual Overhead Data Using the above data, do the following: Activity Cost Pools - Your answer is partially correct. Machine setup Machining Packing Cost Drivers Setups Machine hours Orders $ $ Estimated Overhead 22000 88020 33660 Estimated Overhead $22,000 143680 88,020 Prepare a schedule showing the computations of the activity-based overhead rates per cost driver. 33,660 Estimated Use of Cost Drivers per Product Estimated Use of Cost Drivers per Activity 44 44 4,890 Estimated Use of Cost Drivers per Activity 4890 510 Product BC113 machine hours 510 orders 1,200 setups $ 190 21 $ $ Product AD908 23 3,690 320 Activity-Based Overhead Rates per setup per machine hr. per order

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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Customs has three cost pools and an associated cost driver to allocate the costs to the product. The cost pools, cost driver, estimated overhead, and estimated activity for the cost pool are: What is the predetermined overhead rate for each activity?
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Using the data in P4-2 and Microsoft Excel: 1. Separate the variable and fixed elements. 2. Determine the cost to be charged to the product for the year. 3. Determine the cost to be charged to factory overhead for the year. 4. Determine the plotted data points using Chart Wizard. 5. Determine R2. 6. How do these solutions compare to the solutions in P4-2 and P4-3? 7. What does R2 tell you about this cost model?
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Doede Corporation uses activity-based costing to compute product margins. In the first stage, the activity-based costing system allocates two overhead accounts-equipment depreciation and supervisory expense-to three activity cost pools-Machining. Order Filing, and Other-based on resource consumption, Data to perform these allocations appear below: Overhead costs: Equipment depreciation Supervisory expense $ 30,000 $ 14,800 Distribution of Resource Consumption Across Activity Cost Pools: Equipment depreciation Supervisory expense Activity: Product W1 Product Me Total Machining Order Filling 0.50 0.50 In the second stage, Machining costs are assigned to products using machine-hours (Ms) and Order Filing costs are assigned to products using the number of orders. The costs in the Other activity cost pool are not assigned to products. Product W1 Product Me Total Activity Cost Pools MHS (Machining) 5,530 17,000 22,530 0.40 0.30 Show Transcribed Text 5,530 17,000 22,530 Orders (Order Filling)…
Draus Products Company uses activity-based costing to compute product costs for external reports. The company has three activity cost pools and applies overhead using predetermined overhead rates for each activity cost pool. Estimated costs and activities for the current year are presented below for the three activity cost pools. estimated overhead expected activity activity#1 $60,048 4800 activity#2 $58,656 2400 activity#3 $130,324 4400 Actual costs and activities for the current year were as follows. actual overhead cost actual activity acrivity#1 $59,798 4830 activity#2 $58,476 2370 activity#3 $130,234 4450 The total amount of overhead applied during the year was closest to: 1. $248,508 2. $248,988 3. $250,155 4. $251,334
Doede Corporation uses activity-based costing to compute product margins. In the first stage, the activity-based costing system allocates two overhead accounts--equipment depreciation and supervisory expense--to three activity cost pools--Machining, Order Filling, and Other--based on resource consumption. Data to perform these allocations appear below: Overhead costs: Equipment depreciation $ 91,000 Supervisory expense $ 12,300 Distribution of Resource Consumption Across Activity Cost Pools: Activity Cost Pools Machining Order Filling Other Equipment depreciation 0.60 0.30 0.10 Supervisory expense 0.60 0.20 0.20 In the second stage, Machining costs are assigned to products using machine-hours (MHs) 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: MHs (Machining) Orders (Order Filling) Product W1 6,050 198 Product M0 21,800 999 Total…
Sabby Industries has three activity cost pools and two products. It expects to produce 2,900 units of Product S209 and 1.200 of Product NZ16. Having identified its activity cost pools and the cost drivers for each pool, Sabby accumulated the following data relative to those activity cost pools and cost drivers. Activity Cost Pool Machine set-ups Assembling Inspection (a) Cost Driver Assembling Set-ups Machine hours Calculate the overhead rates. Inspection Inspections Machine set-ups $ $ Estimated Overhead $78,660 323,000 6,400 Estimated Use of Cost Drivers per set-up 190 per inspection 17,000 100 per machine hour 5709 NZ16 130 10,100 60 60 6,900 40
Custom's has three cost pools and an associated cost driver to allocate the costs to the product. The cost pools, cost driver, estimated overhead, and estimated activity for the cost pool are: Cost Pool Material Machining Inspection • Material cost pool . Material requisitions Machine hours Number of inspections • Machining cost pool Custom's data Cost Driver Inspection cost pool Estimated Activity per Driver 14,000 186,400 10,000 Estimated Overhead What is the predetermined overhead rate for each activity? Round to the nearest penny, two decimal places. $52,500 363,500 75,000
Lysiak Corporation uses an activity based costing system to assign overhead costs to products. In the first stage, two overhead costs--equipment depreciation and supervisory expense-are allocated to three activity cost pools--Machining, Order Filling, and Other--based on resource consumption. Data to perform these allocations appear below: Overhead costs: Equipment depreciation $ 47,000 Supervisory expense $ 6,000 Distribution of Resource Consumption Across Activity Cost Pools: Activity Cost Pools Machining Order Filling Other Equipment depreciation 0.60 0.10 0.30 Supervisory expense 0.60 0.20 0.20 In the second stage, Machining costs are assigned to products using machine-hours (MHs) 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 data for the company's two products follow: Activity: MHs (Machining) Orders (Order Filling) Product C9 6,900 200…
Draus Products Company uses activity-based costing to compute product costs for external reports. The company has three activity cost pools and applies overhead using predetermined overhead rates for each activity cost pool. Estimated costs and activities for the current year are presented below for the three activity cost pools. Estimated Overhead Cost Expected Activity Activity #1 $60,048 4,800 Activity #2 $58,656 2,400 Activity #3 $130,324 4,400 Actual costs and activities for the current year were as follows. Actual Overhead Cost Actual Activity Activity #1 $59,798 4,830 Activity #2 $58,476 2,370 Activity #3 $130,234 4,450 The total amount of the debits to the manufacturing overhead during the year was closest to: $248,508. $248,988. $250,334. $251,110.
Forner, Inc., manufactures and sells two products: Product Z1 and Product Z8. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity Estimated Expected Activity Activity Overhead Activity Cost Pools Labor-related Measures Cost Product Z1 Product Z8 Total DLHS $112,190 40,440 609,770 600 2,000 Machine setups Оrder size 2,600 1,200 6, 200 setups 500 700 MHs 3,000 3,200 $762,400 The activity rate for the Machine Setups activity cost pool under activity-based costing is closest to: Multiple Cholce $203.26 per setup $190.55 per setup $122.97 per setup 92 F AQI 61 nere to search DELL