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mpute activity) for the Making A WHings and J86 tes (Le., cost per Support activity cost pools by filling in the table below acuvity Making Awnings Job Support Production Overhead Office Expense Total c) Prepare an income report in good form of a job that involves making 80 meters of awnings

mpute activity) for the Making A WHings and J86 tes (Le., cost per Support activity cost pools by filling in the table below acuvity Making Awnings Job Support Production Overhead Office Expense Total c) Prepare an income report in good form of a job that involves making 80 meters of awnings

FINANCIAL ACCOUNTING
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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b) Compute the activity rates (ie., cost per unit of activity) for the Making Awnings and Job Support activity cost pools by filling in the table below Making Awnings Job Support Production Overhead Office Expense Total C) Prepare an income report in good form of a job that involves making 80 meters of awnings and has direct materials and direct labour cost of $3,000. The sales revenue from this job is |$4,000.
Transcribed Image Text:b) Compute the activity rates (ie., cost per unit of activity) for the Making Awnings and Job Support activity cost pools by filling in the table below Making Awnings Job Support Production Overhead Office Expense Total C) Prepare an income report in good form of a job that involves making 80 meters of awnings and has direct materials and direct labour cost of $3,000. The sales revenue from this job is |$4,000.
Shadow Awnings makes custom awnings for homes and businesses. The company uses an activity-based costing system for its overhead costs. The company has provided the following data conceming its annual overhead costs and its activity cost pools: Overhead Costs: Production overhead $150,000 Office expense Total $100,000 $250,000 Distribution of resource consumption: Activity Cost Pools Job Making Awnings Support Other Total 40% Production overhead 45% 15% 100% Office expense 8% 65% 27% 100% The"Other" activity cost pool consists of the costs of idle capacity and organization-sustaining costs. The amount of activity for the year is as follows: Activity Cost Pool Making Awnings Job Support Other Annual Activity 5,000 metres 200 jobs Not applicable Required: a) Prepare the first-stage allocation of overhead costs to the activity cost pools by filling in the table below Making Awnings Job Support Other Total Production Overhead Office Expense Total
Transcribed Image Text:Shadow Awnings makes custom awnings for homes and businesses. The company uses an activity-based costing system for its overhead costs. The company has provided the following data conceming its annual overhead costs and its activity cost pools: Overhead Costs: Production overhead $150,000 Office expense Total $100,000 $250,000 Distribution of resource consumption: Activity Cost Pools Job Making Awnings Support Other Total 40% Production overhead 45% 15% 100% Office expense 8% 65% 27% 100% The"Other" activity cost pool consists of the costs of idle capacity and organization-sustaining costs. The amount of activity for the year is as follows: Activity Cost Pool Making Awnings Job Support Other Annual Activity 5,000 metres 200 jobs Not applicable Required: a) Prepare the first-stage allocation of overhead costs to the activity cost pools by filling in the table below Making Awnings Job Support Other Total Production Overhead Office Expense Total
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