Overhead costs: Equipment expense Indirect labor $96,000 $4,000 Distribution of Resource Consumption Across Activity Cost Pools: Activity Cost Pools Processing Supervising Other Equipment 0.40 0.20 0.40 expense Indirect labor Processing costs are assigned to products using machine-hours (MHs) and Supervising costs are assigned to products using the number of batches. The costs in the Other activity cost pool are not assigned to products. Activity data for the company's two products follow: 0.30 0.50 0.20 Activity: Batches (Supervising) 400 MHs (Processing) Product R4 6,800 Product L2 13.200 600 20.000 1.000 Total Finally, the costs of Processing and Supervising are combined with the following sales and direct cost data to determine product margins. Sales and Direct Cost Data: Product R4 Product L2 $234,600 $269,600 Sales (total) $120,200 $81,100 Direct materials (total) Direct labor (total) The activity rate for the Supervising activity cost pool under activity-based costing is closest to: $116,600 $93,200

Overhead costs: Equipment expense Indirect labor $96,000 $4,000 Distribution of Resource Consumption Across Activity Cost Pools: Activity Cost Pools Processing Supervising Other Equipment 0.40 0.20 0.40 expense Indirect labor Processing costs are assigned to products using machine-hours (MHs) and Supervising costs are assigned to products using the number of batches. The costs in the Other activity cost pool are not assigned to products. Activity data for the company's two products follow: 0.30 0.50 0.20 Activity: Batches (Supervising) 400 MHs (Processing) Product R4 6,800 Product L2 13.200 600 20.000 1.000 Total Finally, the costs of Processing and Supervising are combined with the following sales and direct cost data to determine product margins. Sales and Direct Cost Data: Product R4 Product L2 $234,600 $269,600 Sales (total) $120,200 $81,100 Direct materials (total) Direct labor (total) The activity rate for the Supervising activity cost pool under activity-based costing is closest to: $116,600 $93,200

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Description: kboard• Show TimerA Question Completion Status:203D40701011 120 13D 140151617181920212223Lake Corporation has an activity-based costing system with three activity cost pools-Processing, Supervising, and Other. In the first stage allocations, costs i

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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Bruce Corporation makes four products in a single facility. These products have the following unit product costs: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Unit product cost Additional data concerning these products are listed below. Products A B C $ 17.50 $ 21.40 $ 14.40 19.50 22.90 17.30 D $ 17.10 11.30 6.30 7.50 10.00 29.40 16.30 16.40 7.00 18.40 $ 72.70 $ 68.10 $ 58.10 $ 53.80 Products Grinding minutes per unit Selling price per unit Variable selling cost per unit Monthly demand in units A B C D 2.40 1.45 1.00 $ 88.20 $3.25 4,900 $ 80.60 $3.95 3,900 $ 77.40 1.30 $ 72.10 $ 4.70 3,900 $5.40 5,900 The grinding machines are potentially the constraint in the production facility. A total of 10,500 minutes are available p on these machines. Direct labor is a variable cost in this company. Which product makes the MOST profitable use of the grinding machines? Note: Round your intermediate calculations to 2 decimal places. Multiple Choice…
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