QS 21-3 (Algo) Classifying costs LO C1 Following are costs for eight different items. Costs are shown for three different levels of units produced and sold. Classify each of the eight cost items as either variable, fixed, or mixed. Costs for Different Levels of Units Produced and Sold Direct labor Depreciation on factory equipment Direct materials Rent on factory building. Salesperson compensation Factory supervisor salary Factory utilities Insurance on factory building Direct labor Depreciation on factory equipment Direct materials Rent on factory building Salesperson compensation Factory supervisor salary Factory utilities Insurance on factory building At 0 units At 2,000 units At 4,000 unita $0 4,200. 0 2,200 4,200 5,200 220 1,100 $ 11,200 4,200 7,200 2,200 4,200 5,200 620 1,100 $ 22,400 4,200 14,400 2,200 5,200 5,200 820 1,100

QS 21-3 (Algo) Classifying costs LO C1 Following are costs for eight different items. Costs are shown for three different levels of units produced and sold. Classify each of the eight cost items as either variable, fixed, or mixed. Costs for Different Levels of Units Produced and Sold Direct labor Depreciation on factory equipment Direct materials Rent on factory building. Salesperson compensation Factory supervisor salary Factory utilities Insurance on factory building Direct labor Depreciation on factory equipment Direct materials Rent on factory building Salesperson compensation Factory supervisor salary Factory utilities Insurance on factory building At 0 units At 2,000 units At 4,000 unita $0 4,200. 0 2,200 4,200 5,200 220 1,100 $ 11,200 4,200 7,200 2,200 4,200 5,200 620 1,100 $ 22,400 4,200 14,400 2,200 5,200 5,200 820 1,100

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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vishu subject-Accounting
Question 1 Answer: Question 2 a Total Manufacturing Costs: Variable Fixed Factory Overhead Total Cost Per Unit b Markup Percentage % Seling Price
:14 es Howell Corporation's activity-based costing system has three activity cost pools-Machining, Setting Up, and Other. The company's overhead costs, which consist of equipment depreciation and indirect labor, are allocated to the cost pools in proportion to the activity cost pools' consumption of resources. Equipment depreciation (total) Indirect labor (total) Distribution of Resource Consumption Across Activity Cost Pools Setting Up 0.30 0.10 Equipment depreciation Indirect labor Product S4 Product CO Total Costs in the Machining cost pool are assigned to products based on machine-hours (MHS) and costs in the Setting Up cost pool are assigned to products based on the number of batches. Costs in the Other cost pool are not assigned to products. Sales (total) Direct materials (total) Direct labor (total) $ 33,800 $ 7,950 MHS 8,900 6,300 15,200 Required A Machining 0.30 0.30 Additional data concerning the company's products appears below: Product S4 Product Co $ 88,100 $ 75,500 $…
Maglie Company manufactures two video game consoles: handheld and home. The handheld consoles are smaller and less expens than the home consoles. The company only recently began producing the home model. Since the introduction of the new product. profits have been steadily declining. Management believes that the accounting system is not accurately allocating costs to products particularly because sales of the new product have been increasing Management has asked you to investigate the cost allocation problem. You find that manufacturing overhead is currently assigned to products based on their direct labor costs. For your investigation, you have data from last year. Manufacturing overhead was $1,366,000 based on production of 340.000 handheld consoles and 89,000 home consoles. Direct labor and direct materials costs were as follows. Direct labor Materials Handheld $1,294, 500 790,000 Cost Driver Number of production runs Quality tests performed Shipping orders processed Total overhead…
B 1.
10. Determine difference between the three methods used for allocating factory overhead cost to products.
Required: Prepare a quantitative comparison of the traditional and activity-based cost assignments.
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