Schedule of Activity CostsQuality Control ActivitiesProduct testingAssessing vendor qualityRecallsReworkScrap disposalProduct designTraining machine operatorsWarranty workProcess auditsFrom the provided schedule of activity costs, determine the (a) value-added and (b) non-value-added costs.2a. Value-added costs $Activity Cost$55,00026,00018,00029,0008,00030,00046,00012,00022,000b. Non-value-added costs $

Value added costs are those which add value to the goods or services whereas non-value added costs…

Answered: Schedule of Activity Costs Quality…

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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Appendix 4B) Assigning Support Department Costs by Using the Direct Method Quillen Company manufactures a product in a factory that has two producing departments, Cutting and Sewing, and two support departments, S1 and S2. The activity driver for S1 is number of employees, and the activity driver for S2 is number of maintenance hours. The following data pertain to Quillen: Support Departments Producing Departments S1 S2 Cutting Sewing Direct costs $180,000 $150,000 $122,000 $90,500 Normal activity: Number of employees — 30 63 147 Maintenance hours 1,200 — 16,000 4,000 Required: 1. Calculate the cost assignment ratios to be used under the direct method for Departments S1 and S2. (Note: Each support department will have two ratios—one for Cutting and the other for Sewing.) Enter your answers as decimal values. S1 S2 Cutting Sewing 2. Allocate the support department costs to the producing departments by using the direct method. Use a…
Activity Clerical support Facility services Client consultations Activity usage for each service follows. Activity Cost Driver Documents Billable hours Court dates Budgeted Cost Required 1 Required 2 $ 57,600 20,160 72,800 Activity Clerical support Facility services Client consultations Budgeted Activity Usage 360 documents 2,520 billable hours 28 court dates Activity Usage Litigation 210 920 20 Mediation 150 1,600 8 Required: 1. Compute an activity rate for each activity using activity-based costing. 2. Compute overhead cost per unit (case) for both litigation and mediation using activity-based Total 360 2,520 28 Complete this question by entering your answers in the tabs below. Compute an activity rate for each activity using activity-based costing. (Round "Activity rate" to 2 c Budgeted Cost Budgeted Activity Usage Activity Rate
Three Rivers Inc. provides cable TV and Internet service to the local community. The activities and activity costs of Three Rivers are identified as follows: Question Content Areaa. Identify the cost of quality classification for each activity and whether the activity is value-added or non-value-added. Quality Control Activities Activity Cost Quality Cost Classification Value-Added/Non-Value-AddedClassificationBilling error correction $42,800 External failure Non-value-addedCable signal testing 117,300 Appraisal Non-value-addedReinstalling service (installed incorrectly the first time) 92,000 Internal failure Non-value-addedRepairing satellite equipment 20,700 Internal failure Non-value-addedRepairing underground cable connections to the customer 27,800 Internal failure Non-value-addedReplacing old technology cable with higher quality cable 142,000 Appraisal Value-addedReplacing old technology signal switches…
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Q.For any cost classified in the gray area, assume 60% is value-added and 40% is non-value-added. How much of the total of all seven costs is value-added and how much is non-value-added?
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Step-Down Method The Ferre Publishing Company has three service departments and two operating departments. Selected data from a recent period on the five departments follow The company allocates service department costs by the step-down method in the following order: Administration (number of employees). Janitorial (space occupied), and Maintenance (hours of press time). Required: Using the step-down method, allocate the service department costs to the operating departments.:
Exercise 7-7 (Static) First-Stage Allocations [LO7-2] The operations vice president of Security Home Bank has been interested in investigating the efficiency of the bank's operations. She has been particularly concerned about the costs of handling routine transactions at the bank and would like to compare these costs at the bank's various branches. If the branches with the most efficient operations can be identified, their methods can be studied and then replicated elsewhere. While the bank maintains meticulous records of wages and other costs, there has been no attempt thus far to show how those costs are related to the various services provided by the bank. The operations vice president has asked your help in conducting an activity-based costing study of bank operations. In particular, she would like to know the cost of opening an account, the cost of processing deposits and withdrawals, and the cost of processing other customer transactions. The Westfield branch of Security Home…
‏COVID 19 Co uses an activity based costing system with three activity cost pools . The company has provided the following data concerning its costs and its activity based costing system : Costs : $ 273.000 Wages and salaries Depreciation 207.000 199,000 Utilities Total $ 679.000 Distribution of resource consumption Total 100 % Activity Cost Pools Assembly Setting Other Up Wages and salaries 60 20 % 20 % Depreciation 359 20 % 4596 Utilities 20 % 60 % 2096 How much cost , in total , would be allocated in the first stage allocation to the Assembly activity cost pool ? 100 % 100

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