Klumper Corporation is a diversified manufacturer of industrial goods. The company's activity-based costing system contains the following six activity cost pools and activity rates: Activity Cost Pool Supporting direct labor Machine processing Machine setups Activity Rates $ 9 per direct labor-hour $ 2 per machine-hour $ 40 per setup $ 160 per order $ 120 per shipment $ 850 per product Production orders Shipments Product sustaining Activity data have been supplied for the following two products: Total Expected Activity К425 M67 Number of units produced per year Direct labor-hours 200 2,000 1,000 60 Machine-hours 2,400 50 Machine setups Production orders 2 2 Shipments Product sustaining 18 2 2 2 Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system? Activity Cost Pool K425 M67 Supporting direct labor Machine processing Machine setups Production orders 1,440 Shipments 2,160 Product sustaining 1,700 Total overhead cost $ 5,300 $

Klumper Corporation is a diversified manufacturer of industrial goods. The company's activity-based costing system contains the following six activity cost pools and activity rates: Activity Cost Pool Supporting direct labor Machine processing Machine setups Activity Rates $ 9 per direct labor-hour $ 2 per machine-hour $ 40 per setup $ 160 per order $ 120 per shipment $ 850 per product Production orders Shipments Product sustaining Activity data have been supplied for the following two products: Total Expected Activity К425 M67 Number of units produced per year Direct labor-hours 200 2,000 1,000 60 Machine-hours 2,400 50 Machine setups Production orders 2 2 Shipments Product sustaining 18 2 2 2 Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system? Activity Cost Pool K425 M67 Supporting direct labor Machine processing Machine setups Production orders 1,440 Shipments 2,160 Product sustaining 1,700 Total overhead cost $ 5,300 $

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 11EA: Potterii sells its products to large box stores and recently added a retail line of products to sell...

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what is the labor-related activity cost pool per DLH what is the machine-related activity cost pool per MH what is the machine setups activity cost pool per seteup what is the production orders activity cost per order what is the product testing activity cost per test what is the packaging activity cost per package what is the general factory activity cost per DLH
Scarborough Company has two products: C and D. The company usesactivity - based costing. The estimated total cost and expected activity foreach of the company's three activity cost pools are as follows:Expected ActivityActivity Cost Pool Estimated Cost Product C Product D TotalActivity 1 S17, 848 S17, 848 100 800Activity 2 S16,350 618 150 768Activity 3 S22, 185 842 120 962How much of Activity 1 is expected to be allocated to Product C? Multiple Choice S22, 310.00S17, 848.00S15, 617.00S2, 231.00
Weirick, Incorporated, manufactures and sells two products: Product T8 and Product P4. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Activity Cost Pools Activity Measures Estimated Overhead Cost Expected Activity Product T8 Product P4 Total Labor-related DLHs $ 134,500 9,600 4,800 14,400 Production orders orders 63,430 1,300 200 1,500 Order size MHs 992,100 3,100 3,900 7,000 $ 1,190,030 The total overhead applied to Product P4 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.) Multiple Choice $928,670 $552,747 $606,037 $1,055,530
A company manufactures and sells two products: Product T8 and Product P4. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity:
Arial Company has two products: A and B. The company uses activity-based costing. The total cost and activity for each of the company's three activity cost pools are as follows: Total Activity Activity Cost Pool Total Cost Product A Product B Total Activity 1 $ 38,000 800 500 1,300 Activity 2 $ 29,040 780 600 1,380 Activity 3 $ 26,600 900 650 1,550 The activity rate under the activity-based costing system for Activity 3 is:
Ayala Inc. has conducted the following analysis related to its product lines, using a traditional costing system (volume-based) and an activity-based costing system. Both the traditional and the activity-based costing systems include direct materials and direct labor costs. Total Costs Products Sales Revenue Traditional АВС Product 540X $ 202,000 $ 59,000 $ 45,900 Product 137Y 172,000 52,000 41,000 Product 2495 84,000 17,000 41,100 X Your answer is incorrect. For each product line, compute operating income using the traditional costing system. Product 540X S 143760 Product 137Y 109610 Product 2495 71900 eTextbook and Media Solution X Your answer is incorrect. For each product line, compute operating income using the activity-based costing system. Product 540X 24 152680 Product 137Y 119410 Product 2495 24 59180 %24 %24
Roca, Incorporated, manufactures and sells two products: Product M6 and Product X7. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Estimated Overhead Cost Activity Cost Pools Labor-related Production orders Order size Multiple Choice O $360,294 O $443.424 O $369,879 Activity Measures DLHs orders MHS O $249,264 $ 152,100 63,035 505,452 $ 720,587 The total overhead applied to Product X7 under activity-based costing is closest to: (Round your Intermediate calculations to 2 decimal places.) Expected Activity Product M6 Product X7 3,000 400 4,800 300 3,700 3,600 saved Total 7,800 700 7,300
The Company has two products: X and Y. The company uses activity-based costing. Theestimated total cost and expected activity for each of the company's three activity cost pools areas follows: Estimated Expected Activity Activity Cost Pool Cost Product X Product Y Total Activity 101 £33,600 100 700 800 Activity 102 £44,000 200 800 1,000 Activity 103 £68,600 500 600 1,100 The activity rate under the activity-based costing system for Activity 103 is closest to: A. 62.36 B. 50.42 C. 114.34 D.132.90
Ayala Inc. has conducted the following analysis related to its product lines, using a traditional costing system (volume-based) and an activity-based costing system. Both the traditional and the activity-based costing systems include direct materials and direct labor costs. Products Product 540X Product 137Y Product 2495 Sales Revenue $208,000 155,000 92.000 Total Costs Traditional $54,000 48,000 23.000 ABC $49,000 30,000 46,000
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Jennifer Company has two products: A and B. The company uses activity-based costing. The estimated total cost and expected activity for each of the company's three activity cost pools are as follows: Estimated Expected Activity Overhead Activity Cost Pools Product design Assembling Supporting customers Cost Product A Product B 400 Total $23,500 $18,000 $34,600 100 200 300 500 500 600 700 900 The activity rate under the activity-based costing sysam for Supporting customers is closest to: Multiple Cholce $36.24 $84.56 S115.33 Prev 1 of 10 Next > 2:0 92 F AQI 61 9/9 Type here to search DELL
Strama, Inc., manufactures and sells two products: Product A6 and Product 15. 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 Production orders Measures Cost $181,138 39,624 173,147 Product A6 Product I5 1,800 Total DLHS 7,200 400 9,000 orders 600 1,000 Order size MHS 4,600 4,700 9,300 $393,909 The activity rate for the Order Size activity cost pool under activity-based costing is closest to: Multiple Cholce $23.74 per MH $100.63 per MH $43.77 per MH 自。 92 F AQI 61 ype here to search DELL