Olmo, Incorporated, manufactures and sells two products: Product KO and Product H9. The annual production and sales of Product of KO is 900 units and of Product H9 is 900 units. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Activity Cost Pools Labor-related Production orders: Order size Activity Measures DLHS orders MHS Estimated Overhead Cost $ 550, 208 53, 219 835,816 $ 1,439, 243 Expected Activity Product Ke Product H 5,400 1,000 3,100 2,700 600 4,000 Total 8,100 1,690 7,100 The overhead applied to each unit of Product H9 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.)

Olmo, Incorporated, manufactures and sells two products: Product KO and Product H9. The annual production and sales of Product of KO is 900 units and of Product H9 is 900 units. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Activity Cost Pools Labor-related Production orders: Order size Activity Measures DLHS orders MHS Estimated Overhead Cost $ 550, 208 53, 219 835,816 $ 1,439, 243 Expected Activity Product Ke Product H 5,400 1,000 3,100 2,700 600 4,000 Total 8,100 1,690 7,100 The overhead applied to each unit of Product H9 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.)

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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Godiva company has two products, A and B. The company uses activity-based costing to allocate overhead costs of $100,000. Data relating to the company's activity pools for the current year are given below: Cost Pool Total cost in Total Number of Activity Measures Used Cost Pool Product A Product B Total Activity 1 $42,000 100 200 300 Activity 2 $10,000 20 5 25 Activity 3 $48,000 3,000 3,000 6,000 Compute the activity rate (allocation rate) for Activity 2: $500 $2,000 $400 $140
Chrzan, Incorporated, manufactures and sells two products: Product EO and Product NO. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: Product E0 Product Ne Total direct labor-hours Activity Cost Pools Labor-related Production orders Order size The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Estimated Overhead Cost Multiple Choice $33.94 per MH $54.20 per MH Direct Expected Labor-Hours Production Per Unit 10.1 410 1,550 9.1 $51.98 per MH $21.40 per MH Activity Measures DLHS orders MHs Total Direct Labor- Hours $ 301,890 61,087 585,366 $948,343 The activity rate for the Order Size activity cost pool under activity-based costing is closest to: 4,141 14, 105 18,246 Product E 4,141 850 5,550 Expected Activity Product NO 14, 105 950 5,250 Total 18,246 1,800 10,800
Larner 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 Labor-related Machine-related Machine setups Production orders Shipments $ 140.00 per shipment General factory $ 7.00 per direct labor-hour Cost and activity data have been supplied for the following products: Direct labor-hours Machine-hours Machine setups Production orders Shipments Activity Rates $7.00 per direct labor-hour Direct materials cost per unit Direct labor cost per unit Number of units produced per year $7.00 per machine-hour $30.00 per setup $200.00 per order Unit product cost Total Expected Activity J78 378 1,200 2,200 6 5 7 B52 30 50 1 1 1 Required: Compute the unit product cost of each product listed above. (Do not round intermediate calculations. Round your answers to 2 decimal places.) B52 378 $5.50 $ 4.75 4,000 B52 $32.00 $9.00 100
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 Production orders. Shipments Product sustaining Activity data have been supplied for the following two products: Total Expected Activity Activity Rates $ 7 per direct labor-hour $ 4 per machine-hour $50 per setup $ 170 per order $ 130 per shipment $ 800 per product Number of units produced per year Direct labor-hours Machine-hours Machine setups Production orders Shipments Product sustaining K425 200 1,075 2,200 11 11 22 2 M67 2,000 40 30 2 2 2 2 Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system?
Paparo Corporation has provided the following data from its activity-based costing system: Total Cost $1,005,000 Activity Cost Pool Assembly Processing orders Inspection Data concerning the company's product Q79Y appear below: Annual unit production and sales Annual machine-hours Annual number of orders Annual inspection hours Direct materials cost Direct labor cost Multiple Choice $168.52 per unit Total Activity 60,000 machine-hours 2,200 orders $ 83,930 $ 106,960 1,400 inspection-hours According to the activity-based costing system, the average cost of product Q79Y is closest to: $96.25 per unit $131.30 per unit O $151.15 per unit 350 1,100 100 40 $55.00 per unit $41.25 per unit
Feldpausch Corporation has provided the following data from its activity-based costing system: Activity Cost Pool Total Cost Total Activity Assembly $ 1,398,250 65,800 machine-hours Processing orders $ 69,451 2,520 orders Inspection $ 184,800 2,400 inspection-hours The company makes 920 units of product W26B a year, requiring a total of 1,290 machine-hours, 61 orders, and 40 inspection-hours per year. The product's direct materials cost is $57.55 per unit and its direct labor cost is $13.56 per unit. The product sells for $123.50 per unit. According to the activity-based costing system, the product margin for product W26B is: (Round your intermediate calculations and final answers to 2 decimal places.)
Ivanhoe 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 activity-based costing systems include direct materials and direct labour costs. Products Product 440X Product 137Y Product 249S (a) Sales Revenue $201,000 172,000 Operating income 87,000 Total Costs Traditional $55,000 74,000 26,000 Additional information related to product usage by these pools is as follows: ABC $50,036 70,668 34,296 For each product line, calculate operating income using the traditional costing system. Product 440X Traditional costing system $ Product 137Y $ Product 249S
A company has provided the following data from its activity-based costing system: Activity Cost Pool Total Cost Total Activity Assembly Processing orders $70,578.60 $1,586,690 66,500 machine-hours 2,370 orders Inspection $124,500 1,660 inspection- hours The company makes 600 units of product A a year, requiring a total of 2,030 machine- hours, 108 orders, and 33 inspection-hours per year. The product's direct materials cost is $52.59 per unit and its direct labor cost is $19.32 per unit. The product sells for $175.60 per unit. According to the activity-based costing system, the product margin for product A is: (Round your intermediate calculations to 2 decimal places.) Multiple Choice $10,561.96 $8.086.96 $11,303.20 $62.214.00
YKPBNO412 Corp., manufactures and sells two products: Product TOTEMO and Product SUGOI. YKPBNO412 has an activity-based costing system with the following activity cost pools, activity measures, and expected activity: (ID#60553) Activity Cost Pools Labor-related Production orders Order size Multiple Choice O O $535,150 $914,020 $467,602 Activity Measures DLHS orders MHS $1,038,880 Estimated Overhead Cost $ 132,400 62,430 976,450 $1,171,280 (Baruch College Exam) Q) What is YKPBNO412's total overhead applied to Product SUGOI under activity-based costing? (choose the closest answer) (Round your intermediate calculations to 2 decimal places.) Product TOTEMO 1,800 1,000 3,700 Expected Activity Product SUGOI 900 600 3,400 Total 2,700 1,600 7,100 HE
Larner 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 Rates $8.00 per direct labor-hour Activity Cost Pool Labor-related Machine-related Machine setups Production orders Shipments $9.00 per machine-hour $ 50.00 per setup $100.00 per order $ 180.00 per shipment General factory $9.00 per direct labor-hour Cost and activity data have been supplied for the following products: Direct materials cost per unit Direct labor cost per unit Number of units produced per year Direct labor-hours Machine-hours Machine setups Production orders Shipments Unit product cost Total Expected Activity J76 379 900 2,900 4 8 12 852 50 20 B52 4 Required: Compute the unit product cost of each product listed above. (Do not round intermediate calculations. Round your answers to 2 decimal places.) 378 $ 4.50 $ 4.75 4,000 852 $ 45.00 $10.00. 500
Data concerning three of Kilmon Corporation’s activity cost pools appear below: Activity Cost Pools Estimated Overhead Cost Expected Activity Assembling products $ 86,070 4,530 assembly hours Designing products $ 605,412 3,012 product design hours Setting up batches $ 48,140 830 batch set-ups Required: Compute the activity rates for each of the three cost pools.
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