Forner, Inc., manufactures and sells two products: Product Z1 and Product Z8. The company has an activity-basedcosting system with the following activity cost pools, activity measures, and expected activity:Expected ActivityEstimatedActivityOverheadActivity Cost PoolsMeasuresCostProduct Z1Product Z8TotalLabor-related$ 124,4006,000DLHS3,0009,000Machine setupssetups58,6607006001,300Order sizeMHs917,4803,8003,0006,800$1,100,540The activity rate for the Order Sıze activity cost pool under activity-based costing is closest to:Multiple Cholce$59.53 per MH$193.87 per MH$143.55 per MH$134.92 per MH

Name: Forner, Inc., manufactures and sells two products: Product Z1 and Pro
Uploaded: 2024-03-20T06:32:49.000Z
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Description: Forner, Inc., manufactures and sells two products: Product Z1 and Product Z8. The company has an activity-basedcosting system with the following activity cost pools, activity measures, and expected activity:Expected ActivityEstimatedActivityOverhead

Activity based costing is a costing method that assigns overhead and indirect costs to related…

Business

Accounting

Forner, Inc., manufactures and sells two products: Product 21 and Product 28. 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 28 Total DLHS $ 124,400 3,000 6,000 700 9,000 Machine setups setups 58,660 600 1,300 Order size MHS 917,480 $1,100,540 3,800 3,000 6,800 The activity rate for the Order Size activity cost pool under activity-based costing is closest to: Multiple Cholce $59.53 per MH $193.87 per MH $143.55 per MH $134.92 per MH

Forner, Inc., manufactures and sells two products: Product 21 and Product 28. 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 28 Total DLHS $ 124,400 3,000 6,000 700 9,000 Machine setups setups 58,660 600 1,300 Order size MHS 917,480 $1,100,540 3,800 3,000 6,800 The activity rate for the Order Size activity cost pool under activity-based costing is closest to: Multiple Cholce $59.53 per MH $193.87 per MH $143.55 per MH $134.92 per MH

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Large, Inc., manufactures and sells two products: Product G8 and Product 00. Historically, the firm has used a traditional costing system, with direct laborurs as an activity base, to allocated manufaturing overhead to products. Data concerning the expected production of each product and the expected total direct labor-hours (DLHS) required to produce that output appear below: Product GS Product 00 Total direct labor-hours Product G8 Product 00 Activity Cost Pools Labor-related Expected Production 780 380 The direct labor rate is $22.90 per DLH. The direct materials cost per unit for each product is given below: Direct Materials Cost per Unit $121.10 $121.50 Machine setups Order size Activity Measures DLHS setups MHS Direct Labor-Hours Per Unit The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: 5.8 2.8 Estimated Overhead Cost $ 59,555 58,390 369,508 $487,453 Total Direct Labor- Hours…
Maxx Inc. has provided the following data from its activity-based costing system:Activity Cost Pools Total Cost Total ActivityDesigning products $383,900 6,580 product design hoursSetting up batches $52,678 7366 batch set-upsAssembling products $25,122 4,018 assembly hoursThe activity rate for the “designing products” activity cost pool is:
Olmo, Inc., manufactures and sells two products: Product KO and Product H9. The annual production and sales of Product of K0 is 600 units and of Product H9 is 600 units. The company has an activity- based costing system with the following activity cost pools, activity measures, and expected activity. Activity Measures Overhead Cost Product KO Estimated Expected Activity Activity Cost Pools Labor-related Production orders Product H9 Total 9,000 1,300 6,800 DLHS $ 550,408 53,419 836,016 6,000 700 3,800 3,000 orders 600 Order size MHs 3,000 $1,439,843 The overhead applied to each unit of Product KO under activity-based costing is closest to: (Round your Intermedlate calculations to 2 declmal places.) Multiple Cholce $611.60 per unlt $1.438.16 per unit. $778.62 per unit C479 95 nerınlt 3 自! 92°F AQI 61 9/9 pe here to search DELL
Angel Corporation uses activity-based costing to determine product costs for external financial reports. The company has provided the following data concerning its activity-based costing system: Activity Cost Pools (and Activity Measures) Machine related (machine-hours) Estimated Overhead Cost $323,840 $363,000 $258,420 Batch setup (setups) Order size (direct labor-hours) Expected Activity Activity Cost Pools Machine related Product X Product Y Total 5,400 10,800 4,400 7,400 2,400 7,400 12,800 Batch setup 13,200 11,800 Order size Assuming that actual activity turns out to be the same as expected activity, the total amount of overhead cost allocated to Product X would be closest to: (Round your intermediate calculations to 2 decimal places.)
Dierich Company uses an activity-based costing system with three activity cost pools. The company has provided the following data concerning its costs and its activity-based costing system: Costs: Manufacturing overhead $600,000 Selling and administrative expenses 220,000 Total $820,000 Distribution of Resource Consumption: Activity Cost Pools Order Size Customer Support Other Total Manufacturing overhead 15% 75% 10% 100% Selling and administrative expenses 60% 20% 20% 100% The "Other" activity cost pool consists of the costs of idle capacity and organization-sustaining costs. You have been asked to complete the first-stage allocation of costs to the activity cost pools. How much cost, in total, would be allocated in the first-stage allocation to the Order Size activity cost pool? Multiple Choice $123,000 $222,000 $307,500 $492,000
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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 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…
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