Little League, Inc. makes two kinds of Number of units sold Sales price per unit Direct materials per unit Direct labor dollars per unit Cutting machine-hours per unit Direct labor-hours per unit Pro 65,000 10,000 Beginner $65 $100 $10 $30 0.50 1.00 2.00 3.00 $20 $45 Little League is considering the use of activity-based costing, although it currently uses traditional (simple) costing (meaning it uses just one pool of overhead costs and one allocation base). Little League is doing some analysis at year-end to see which costing method is best. Little League incurred total overhead costs for the year of $615,000, with direct labor-hours as the only allocation base. Using traditional costing (using only one overhead rate), what is the total cost (direct materials, direct labor and overhead costs) of each Beginner baseball glove? $48.20 $56.40 $47.68 $43.84

Little League, Inc. makes two kinds of Number of units sold Sales price per unit Direct materials per unit Direct labor dollars per unit Cutting machine-hours per unit Direct labor-hours per unit Pro 65,000 10,000 Beginner $65 $100 $10 $30 0.50 1.00 2.00 3.00 $20 $45 Little League is considering the use of activity-based costing, although it currently uses traditional (simple) costing (meaning it uses just one pool of overhead costs and one allocation base). Little League is doing some analysis at year-end to see which costing method is best. Little League incurred total overhead costs for the year of $615,000, with direct labor-hours as the only allocation base. Using traditional costing (using only one overhead rate), what is the total cost (direct materials, direct labor and overhead costs) of each Beginner baseball glove? $48.20 $56.40 $47.68 $43.84

Name: Little League, Inc. makes two kinds of baseball gloves-the Beginner a
Uploaded: 2024-03-20T06:32:49.000Z
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Description: Little League, Inc. makes two kinds of baseball gloves-the Beginner and the Pro. Below is some relevant information for the past year (unit means one baseball glove):ProBeginner65,000 10,000$65 $100$10$20$30$450.501.002.00 3.00Number of units soldSa

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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Thermal Rising, Incorporated, makes paragliders for sale through specialty sporting goods stores. The company has a standard paraglider model, but also makes custom-designed paragliders. Management designed an activity-based costing system with the following activity cost pools and activity rates: Activity Cost Pool Supporting direct labor Order processing Custom design processing Customer service Activity Rate $ 18 per direct labor-hour $ 200 per order $ 264 per custom design $ 432 per customer Management wants to calculate the profitability of a particular customer, Big Sky Outfitters, which ordered the following products over the last 12 months: Number of gliders Number of orders Number of custom designs Direct labor-hours per glider Selling price per glider Direct materials cost per glider Standard Model Custom Design 15 2 2 2 0 2 30.50 34.00 $ 1,850 $ 452 $ 2,480 $ 582 The company's direct labor rate is $20 per hour. Required: Using the company's activity-based costing system,…
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Thermal Rising, Incorporated, makes paragliders for sale through specialty sporting goods stores. The company has a standard paraglider model, but also makes custom-designed paragliders. Management designed an activity - based costing system with the following activity cost pools and activity rates: Activity Cost Pool Activity Rate Supporting direct labor $ 22 per direct labor-hour Order processing $ 198 per order Custom design processing $ 252 per custom design Customer service $ 428 per customer Management wants to calculate the profitability of a particular customer, Big Sky Outfitters, which ordered the following products over the last 12 months: Standard Model Custom Design Number of gliders 11 2 Number of orders 22 Number of custom designs 02 Direct labor-hours per glider 27.50 32.00 Selling price per glider $1,825 $2,490 Direct materials cost per glider $ 452 $ 570 The company's direct labor rate is $16 per hour. what is the customer margin?
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Thermal Rising, Incorporated, makes paragliders for sale through specialty sporting goods stores. The company has a standard paraglider model, but also makes custom-designed paragliders. Management designed an activity-based costing system with the following activity cost pools and activity rates: Activity Cost Pool Supporting direct labor Order processing Custom design processing Customer service Activity Rate $20 per direct labor-hour $ 192 per order $ 265 per custom design $ 432 per customer Management wants to calculate the profitability of a particular customer, Big Sky Outfitters, which ordered the following products over the last 12 months: Standard Model Custom Design Number of gliders Number of orders Number of custom designs Direct labor-hours per glider Selling price per glider Direct materials cost per glider The company's direct labor rate is $18 per hour. Required: 15 200 28.50 $ 1,850 $ 470 2220 34.00 $ 2,480 $ 572 Using the company's activity-based costing system,…
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