Lily Accounting performs two types of services, Audit and Tax. Lily's estimated overhead costs consist of computer support, $312000; and legal support, $153000. Information on the two services and their estimated use of cost drivers is as follows: Direct labor cost CPU minutes Legal hours used Audit Tax $50000 $100000 40000 O $3744 O $5097 O $5544 200 10000 800 Lily Accounting performs tax services for Cathy Lane. Direct labor cost is $1200; 600 CPU minutes were used; and 1 legal hour was used. What is the total cost of the Lane job using ABC?

Lily Accounting performs two types of services, Audit and Tax. Lily's estimated overhead costs consist of computer support, $312000; and legal support, $153000. Information on the two services and their estimated use of cost drivers is as follows: Direct labor cost CPU minutes Legal hours used Audit Tax $50000 $100000 40000 O $3744 O $5097 O $5544 200 10000 800 Lily Accounting performs tax services for Cathy Lane. Direct labor cost is $1200; 600 CPU minutes were used; and 1 legal hour was used. What is the total cost of the Lane job using ABC?

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

s
Marks Corporation has two operating departments, Drilling and Grinding, and an office. The three categories of office expenses are allocated to the two departments using different allocation bases. The following information is available for the curfent period: office Expenses Salaries Depreciation Advertising Item Number of employees Net sales Cost of goods sold Multiple Choice O The amount of the advertising cost that should be allocated to Grinding for the current period is: O O $24,400 $68.000 $36.600 $360.000 Total $46,000 27,000 61,000 $81,000. Allocation Basis Number of employees Cost of goods sold Net sales Drilling Grinding Total 1,200 1,800 3,000 $360,000 $540,000 $900,000 $114,000 $186,000 $300,000
Marks Corporation has two operating departments, Drilling and Grinding, and an office. The three categories of office expenses are allocated to the two operating departments using different allocation bases. The following information is available for the current period: Office Expenses Total Allocation Basis Salaries $39,000 Number of employees Depreciation 29,000 Cost of goods sold Advertising 68,000 Percentage of total sales Department Number of employees Sales Cost of goods sold Drilling 1,800 $368,000 $ 121,600 Grinding 2,700 552,000 198,400 Total 4,500 $920,000 $320,000 The amount of the advertising cost that should be allocated to Drilling for the current period is: Multiple Choice $27,200. $82,600. $40,800. $368,000. $86,200. A company produced 195 units of Product L and 182 units of Product M during the current period and incurred joint costs of $900. Product L sells for $8 per unit and Product M sells for $20 per unit. Compute the cost to be allocated to Product M for this…
Q2. Categorize each of the following activities into the expenditure, conversion, or revenue cycles, and identify the applicable subsystem. a. Preparing the weekly payroll for manufacturing personnel b. Releasing raw materials for use in the manufacturing cycle c. Recording the receipt of payment for goods sold d. Recording the order placed by a customer e. Ordering raw materials f. Determining the amount of raw materials to order?
The following information relates to Myer, Inc.: Advertising Costs Sales Salary Sales Revenue President's Salary Office Rent Manufacturing Equipment Depreciation Indirect Materials Used Indirect Labor Factory Repair and Maintenance Direct Materials Used Direct Labor Delivery Vehicle Depreciation Administrative Salaries $10,600 10,000 500,000 230,000 60,500 1200 8000 13,000 920 27,500 36,000 1550 22,000 How much were Myer's product costs? A) $604,650 B) $252,000 C) $510,600 D) $86,620
Swifty Accounting performs two types of services, Audit and Tax. Swifty's estimated overhead costs consist of computer support, $306000; and legal support, $153000. Information on the two services and their estimated use of cost drivers is as follows: Direct labor cost CPU minutes Legal hours used Audit O $306000. O $153000. O $275400. O $183600. Tax $50000 $100000 40000 10000 200 800 Overhead assigned to tax services using activity-based costing is
The Giga Company produces tablet computers. The following information is provided: a) Materials used b) Advertising $ 218,400 $ 42,400 c) Insurance, factory d) Administrative salaries e) Property taxes, factory f) Utilities, administrative building g) Factory labor h) Sales commissions i) Factory supervisor's salary j) Research and development k) Depreciation, factory 1) Depreciation, office m) Indirect materials a) b) c) d) e) f) g) h) 1) D) k) 1) Required: Classify each of the company's costs as a period cost (general, selling, and administrative cost) or as a direct or indirect product cost. Enter the dollar amount of the cost in the appropriate column. After entering all amounts, calculate the total general, selling, and administrative cost, the total direct product cost, and the total indirect product cost. Item m) Total Period cost Direct product cost $ 22,400 $ 52,400 Indirect product cost $ 14,400 $ 24,400 $82,400 $58,400 $ 62,400 $ 20,400 $ 14,400 $ 10,400 $ 16,400
I need help answering for cost of goods manufactured and the cost of goods sold
Gant Accounting performs two types of services, Audit and Tax. Gant's overhead costs consist of computer support, $303000; and legal support, $151500. Information on the two services is: Tax Audit $50000 $100000 Direct labor cost 10000 40000 CPU minutes 800 200 Legal hours used Overhead applied to tax services using activity-based costing is O $272700. O $151500. O $181800. O $303000. ip
Do not give answer in image
Woodstock Binding has two service departments, IT (Information Technology) and HR (Human Resources), and two operating departments, Publishing and Binding. Management has decided to allocate IT costs on the basis of IT Tickets (issued with each IT request) in each department and HR costs on the basis of employees in each department. The following data appear in the company records for the current period: \table[[,IT,HR,Publishing,Binding],[,0,1,550,2,480,2,170],[IT tickets,16,0,24,40],[\table[[Employees],[Department direct costs]],$154,000,$248,400,$432,000,$395,000
Marks Corporation has two operating departments, Drilling and Grinding, and an office. The three categories of office expenses are allocated to the two operating departments using different allocation bases. The following information is available for the current period: Office Expenses Total Salaries $ 39,000 Allocation Basis Number of employees Depreciation 29,000 Cost of goods sold Advertising 68,000 Percentage of total sales Department Number of employees Drilling Grinding Total 1,800 2,700 4,500 Sales $368,000 552,000 $ 920,000 Cost of goods sold $ 121,600 198,400 $ 320,000 The amount of salaries that should be allocated to Grinding for the current period is: