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: Product C9 Product UO MHS (Machining) Orders (Order Filling) 200 800 6,900 3,100 Total 10,000 1,000 The activity rate for the Machining activity cost pool under activity-based costing is closest to: Select one: O a $2.82 per MH O b. $5.30 per MH Oc. $3.18 per MH O d. $18.00 per MH

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: Product C9 Product UO MHS (Machining) Orders (Order Filling) 200 800 6,900 3,100 Total 10,000 1,000 The activity rate for the Machining activity cost pool under activity-based costing is closest to: Select one: O a $2.82 per MH O b. $5.30 per MH Oc. $3.18 per MH O d. $18.00 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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A company makes two products 1 and 2. The finishing activity pool has estimated manufacuring costs of $84,399 and the cost drivers for Product 1 is 200 and 500 for Product 2. The assembling activity pool has estimated costs of $65,366 and the cost drivers for Product 1 is 350 and 275 for Product 2. Direct labor hours for Product 1 is 323 and 371 for Product 2. What is the total manufacturing overhead rate to be used under traditional cost accounting?
Foam Products, Incorporated, makes foam seat cushions for the automotive and aerospace industries. The company’s activity-based costing system has four activity cost pools, which are listed below along with their activity measures and activity rates: Activity Cost Pool Activity Measure Activity Rate Supporting direct labor Number of direct labor-hours $ 14 per direct labor-hour Batch processing Number of batches $ 90 per batch Order processing Number of orders $ 287 per order Customer service Number of customers $ 2,608 per customer The company just completed a single order from Interstate Trucking for 2,900 custom seat cushions. The order was produced in three batches. Each seat cushion required 0.4 direct labor-hour. The selling price was $142.30 per unit, the direct materials cost was $110 per unit, and the direct labor cost was $14.40 per unit. This was Interstate Trucking’s only order during the year. Required: Calculate the customer margin for Interstate Trucking.
Lion 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 Supervisory expense Equipment depreciation Distribution of Resource Consumption Across Activity Cost Pools: Product C9 $ 47,000 Product UO $ 6,000 Total Supervisory expense 0.60 Activity Cost Pools O $18.00 per MH O $5.30 per MH O $2.82 per MH O $3.18 per MH Mac 0.60 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: 6,900 Order Filling 3,100 0.10 MHS (Machining) 10,000 b.20 200…
A company makes two products 1 and 2. The finishing activity pool has estimated manufacuring costs of $85,557 and the cost drivers for Product 1 is 346 and 237 for Product 2. The assembling activity pool has estimated costs of $67,616 and the cost drivers for Product 1 is 200 and 300 for Product 2. Direct labor hours for Product 1 is 311and 107 for Product 2. What is the total manufacturing overhead cost to be assigned to Product 1 using a single overhead rate as under tradional cost accounting? Round your final answer to the nearest whole dollar and do not put a dollar sign in your answer.
Can I get the answers to 4-5.
A company makes two products 1 and 2. The finishing activity pool has estimated manufacuring costs of $81,411 and the cost drivers for Product 1 is 400 and 262 for Product 2. The assembling activity pool has estimated costs of $62,196 and the cost drivers for Product 1 is 200 and 300 for Product 2. Direct labor hours for Product 1 is 452and 114 for Product 2. What is the total manufacturing overhead cost to be assigned to Product 1 using a single overhead rate as under tradional cost accounting?
Foam Products, Inc., makes foam seat cushions for the automotive and aerospace industries. The company’s activity-based costing system has four activity cost pools, which are listed below along with their activity measures and activity rates: Activity Cost Pool Activity Measure Activity Rate Supporting direct labor Number of direct labor-hours $ 12 per direct labor-hour Batch processing Number of batches $ 94 per batch Order processing Number of orders $ 278 per order Customer service Number of customers $ 2,633 per customer The company just completed a single order from Interstate Trucking for 2,300 custom seat cushions. The order was produced in two batches. Each seat cushion required 0.7 direct labor-hours. The selling price was $141.10 per unit, the direct materials cost was $108 per unit, and the direct labor cost was $14.00 per unit. This was Interstate Trucking’s only order during the year. Required: Prepare a report showing the customer margin…
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Multiple Choice $9,907.97 $89,171.73 $5,173.02 $136.51
Helm Corporation 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 Selling and administrative expenses Total Distribution of resource consumption: Manufacturing overhe Selling and administrative expenses Activity Cost Pools Customer Support 85% 20% Order Size 5% 60% S O $348,000 O $188,500 $29,000 O $84,000 S Other 10% 20% The "Other" activity cost pool consists of the costs of idle capacity and organization-sustaining costs. 480,000 100,000 580,000 You have been asked to complete the first-stage allocation of costs to the activity cost pools. Total 100% 100% How much cost, in total, would be allocated in the first-stage allocation to the Order Size activity cost pool? Next ▸