Exercise 17-16 Using ABC In a service company LO P3Cardiff and Delp is an architectural firm that provides services for residentlal construction projects. The following data pertaln to arecent reporting perlod.ActivitiesCostsDesign departmentClient consultation2,100 contact hours1,888 design hours53, e00 square feet$428, e08102,600DrawingsModelingProject management departmentSupervisionBillingsCollections31,8001,000 days8 jobs8 jobs$220,0008,10014,380Required:1. & 2 Using ABC, compute the firm's activity overhead rates. Form activity cost pools where appropriate. Assign costs to a 8.000-square-foot Job that requires 450 contact hours, 356 design hours, and 125 days to complete. (Round activity rate answers to 2decimal places.)Activity RateActivity DriverIncurredOverheadAssignedActivityExpected CostsExpected Activity DriverClient consultationDrawingsModelingSupervisionBillings/CollectionTotal overhead cost

Name: Exercise 17-16 Using ABC In a service company LO P3Cardiff and Delp i
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Description: Exercise 17-16 Using ABC In a service company LO P3Cardiff and Delp is an architectural firm that provides services for residentlal construction projects. The following data pertaln to arecent reporting perlod.ActivitiesCostsDesign departmentClient

Activities Expected cost cost driver total activities activity rate = expected cost / total…

Business

Accounting

Required: 1. & 2 Using ABC, compute the firm's activity overhead rates. Form activity cost pools where appropriate. Assign costs to a 8,000- square-foot job that requires 450 contact hours, 356 design hours, and 125 days to complete. (Round activity rate answers to 2 decimal places.) Expected Costs Activity Driver Incurred Overhead Assigned Activity Expected Activity Driver Activity Rate Client consultation Drawings Modeling Supervision Billings/Collection Total overhead cost

Required: 1. & 2 Using ABC, compute the firm's activity overhead rates. Form activity cost pools where appropriate. Assign costs to a 8,000- square-foot job that requires 450 contact hours, 356 design hours, and 125 days to complete. (Round activity rate answers to 2 decimal places.) Expected Costs Activity Driver Incurred Overhead Assigned Activity Expected Activity Driver Activity Rate Client consultation Drawings Modeling Supervision Billings/Collection Total overhead cost

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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Required information Skip to question Greenwood Company manufactures two products-15, 000 units of Product Y and 7,000 units of Product Z. The company uses a plantwide overhead rate based on direct labor - hours. It is considering implementing an activity - based costing (ABC) system that allocates all of its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products Y and Z: Activity Cost Pool Activity Measure Estimated Overhead Cost Expected Activity Machining Machine - hours $ 213,400 11,000 MHs Machine setups Number of setups $ 61,600 140 setups Production design Number of products $ 78,000 2 products General factory Direct labor-hours $244,000 10,000 DLHS Activity Measure Product Y Product Z Machining 7,400 3,600 Number of setups 60 80 Number of products 1 1 Direct labor-hours 7,400 2,600 2. Using the plantwide overhead rate, how much manufacturing overhead cost is allocated to Product Y and Product Z?…
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
< Multiple Versus Single Overhead Rates, Activity Drivers Deoro Company has identified the following overhead activities, costs, and activity drivers for the coming year: Expected Cost Activity Driver Activity Capacity Number of setups Number of orders Activity Setting up equipment Ordering costs Machine costs Receiving Receiving hours Deoro produces two models of dishwashers with the following expected prime costs and activity demands: Direct materials Direct labor Units completed Direct labor hours Number of setups Number of orders Machine hours Receiving hours $464,550 Required: 336,300 747,000 424,200 Model A Machine hours $604,000 498,000 17,000 5,800 410 Model B $804,000 456,000 8,700 1,500 6,200 23,500 3,800 The company's normal activity is 7,300 direct labor hours. 160 11,500 18,000 6,300 570 17,700 41,500 10,100 1. Determine the unit cost for each model using direct labor hours to apply overhead. Round intermediate calculations and final answers to nearest cent.
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1. Compute an activity rate for each activity using activity-based costing.
Activity-Based Costing CardioTrainer Equipment Company manufactures stationary bicycles and treadmills. The products are produced in the Fabrication and Assembly production departments. In addition to production activities, several other activities are required to produce the two products. These activities and their associated activity rates are as follows: Activity Activity Rate Fabrication $22 per machine hour (mh) Assembly $12 per direct labor hour (dlh) Setup $40 per setup Inspecting $18 per inspection Production scheduling $8 per production order Purchasing $5 per purchase order The activity-base usage quantities and units produced for each product were as follows: Stationary Bicycle Treadmill Machine hours 1,680 1,070 Direct labor hours 243 131 Setups 45 20 Inspections 158 94 Production orders 60 32 Purchase orders 240 98 Units produced 500 350
please answer within the format by providing formula the detailed workingPlease provide answer in text (Without image)Please provide answer in text (Without image)Please provide answer in text (Without image) Question Content Area Activity rates and product costs using activity-based costing Idris Inc. manufactures entry and dining room lighting fixtures. Five activities are used in manufacturing the fixtures. These activities and their associated budgeted activity costs and activity bases are as follows: Activity BudgetedActivity Cost Activity Base Casting $640,000 Machine hours Assembly 125,000 Direct labor hours Inspecting 30,000 Number of inspections Setup 28,000 Number of setups Materials handling 20,000 Number of loads Corporate records were obtained to estimate the amount of activity to be used by the two products. The estimated activity-base usage quantities and units produced follow: Activity Base Entry Dining Total Machine hours 7,500 12,500 20,000…
Job Order Costing for a Service Company The Fly Company provides advertising services for clients across the nation. The Fly Company is presently working on four projects, each for a different client. The Fly Company accumulates costs for each account (client) on the basis of both direct costs and allocated indirect costs. The direct costs include the charged time of professional personnel and media purchases (air time and ad space). Overhead is allocated to each project as a percentage of media purchases. The predetermined overhead rate is 45% of media purchases. On August 1, the four advertising projects had the following accumulated costs: August 1 Balances $59,100 17,700 41,400 25,400 $143,600 Vault Bank Take Off Airlines Sleepy Tired Hotels Tastee Beverages Total During August, The Fly Company incurred the following direct labor and media purchase costs related to preparing advertising for each of the four accounts: Vault Bank Take Off Airlines Sleepy Tired Hotels Tastee Beverages…
an excellent first step in overhead planning and control. After much effort and analysis, you determined the following cost formulas and gathered the following actual cost data for March: Actual Cost in March Utilities Maintenance Supplies Indirect labor Depreciation Cost Formula $16,600 + $0.21 per machine-hour $38,300 + $1.50 per machine-hour $0.40 per machine-hour $94,800 + $1.50 per machine-hour $68,200 $ 23,440 $ 68,100 $ 9,400 $ 131,700 $ 69,900 During March, the company worked 22,000 machine-hours and produced 16,000 units. The company had originally planned to work 24,000 machine-hours during March. Required: 1. Prepare a flexible budget for March. 2. Prepare a report showing the spending variances for March. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a report showing the spending variances for March. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e.,…