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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Rex Industries has identified three different activities as cost drivers: machine setups, machine hours, and inspections. The overhead and estimated usage are: Compute the overhead rate for each activity. Round your answers to two decimal places. Overhead Overhead Annual Rate per Activity per Activity Usage Activity Machine Setups $157,850 4,100 $ Machine Hours 324,622 14,114 2$ Inspections 119,000 3,400
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Production and sales (units) Materials cost ($) Labour cost per unit ($) at $12 per hour Machine hours (per unit) Total no. of production runs Total no. of purchase orders Total no. of deliveries to retail division Market/Retail prices Overhead costs: Machine set-up costs ($) Machine maintenance costs ($) Ordering costs ($) Delivery costs ($) Total ($) Product S Product R 3,200 5,450 117 95 9 1 12 64 80 260 total: 6 2 30 82 64 320 306,435 415,105 11,680 144,400 877,620 Rinse @ $241.69 = full cost +10% oll Retail price Rinse: $260 The company's policy is to transfer the washing machines from the assembly division to the retail division at full cost plus 10% resulting in internal transfer prices, of $220.17 and $241.69 for S and R when transferred to the retail division. The retail division sells S for $320 per machine and R for $260 per machine to the market. (a) Use activity based costing to allocate the overheads and recalculate the transfer prices for S and R. (b) Calculate the…
1. Company A produces two products H and L. Both are produced on the same equipment and use similar processes. The products differ by volume. Product H is a high volume product while L is a low volume product. Details of product inputs, output and the cost of activities are as follows: Product Machine Hour per unit Direct Annual Total Total No of No Labor Output (Units) Machine Direct Purchase of Hour Hours Labor Orders Set Hours Ups per unit L 4 1000 2000 4000 80 40 H 2 4 10000 20000 40000 160 60 11000 22000 44000 240 100 The cost centers cots (Overheads) are RO 440000 but have been further analyzed as follows: Volume related RO 110000 Purchasing related RO 120000 Set up related RO 210000 Calculate overhead cost under: a. Traditional volume based costing system b. ABC system
A corporation's cost data is: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Sales commissions Variable administrative expense Fixed selling and administrative expense What is the amount of product costs, if 4,000 units are produced? Multiple Choice O O O O $57,200 $8,800 $44,400 $53,200 Cost per Cost per Unit Period $ 6.00 $ 3.35 $ 1.75 $ 1.00 $ 0.40 $ 8,800 $ 4,000
Ramos Company has the following unit costs: Variable manufacturing overhead Direct materials Direct labor Fixed manufacturing overhead Fixed marketing and administrative $19 18 NP 23 16 14 What cost per unit would be used for product costs under full absorption costing?
The following standard costs pertain to a component part manufactured by Ashby Company:Direct materials$2Direct labour5Manufacturing overhead 20 Standard cost per unit $27The company can purchase the part from an outside supplier for $25 per unit. The manufacturing overhead is 60% fixed and this fixed portion would not be affected by this decision. Assume that direct labour is an avoidable cost in this decision. What is the relevant amount of the standard cost per unit to be considered in a decision of whether to make the part internally or buy it from the external supplier?
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The Mamon company manufactures several different products. Unit costs associated with product ABC are as follows.Direct materials P60Direct manufacturing labor… P10VARIABLE MANUFACTURING OVERHEAD… 18FIXED MANUFACTURING OVERHEAD… 32SALES COMMISSIONS… 4ADMINISTRATIVE SALARIES… 16TOTAL… 140 1.HOW MUCH IS THE PERIOD COST PER UNIT
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