Simplifying the ABC System: Equally Accurate Reduced ABC Systems Selected activities and other information are provided for Patterson Company for its most recent year of operations. Expected Consumption Ratios Activity Driver Quantity Wafer A Wafer B 7. Inserting dies Number of dies 2,200,000 0.7 0.3 8. Purchasing materials Number of purchase orders 1,900 0.2 0.8 1. Developing test programs Engineering hours 11,500 0.25 0.75 3. Testing products Test hours 20,000 0.6 0.4 ABC assignments $155,000 $155,000 Total overhead cost $310,000 Required: 1. Form reduced system cost pools for activities 7 and 8. Do not round interim calculations. Round your final answers to the nearest dollar. Inserting dies cost pool $ Purchasing cost pool
Simplifying the ABC System: Equally Accurate Reduced ABC Systems Selected activities and other information are provided for Patterson Company for its most recent year of operations. Expected Consumption Ratios Activity Driver Quantity Wafer A Wafer B 7. Inserting dies Number of dies 2,200,000 0.7 0.3 8. Purchasing materials Number of purchase orders 1,900 0.2 0.8 1. Developing test programs Engineering hours 11,500 0.25 0.75 3. Testing products Test hours 20,000 0.6 0.4 ABC assignments $155,000 $155,000 Total overhead cost $310,000 Required: 1. Form reduced system cost pools for activities 7 and 8. Do not round interim calculations. Round your final answers to the nearest dollar. Inserting dies cost pool $ Purchasing cost pool
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Simplifying the ABC System: Equally Accurate Reduced ABC Systems
Selected activities and other information are provided for Patterson Company for its most recent year of operations.
| Expected Consumption Ratios |
||||||||
| Activity | Driver | Quantity | Wafer A | Wafer B | ||||
| 7. Inserting dies | Number of dies | 2,200,000 | 0.7 | 0.3 | ||||
| 8. Purchasing materials | Number of purchase orders |
1,900 | 0.2 | 0.8 | ||||
| 1. Developing test programs | Engineering hours | 11,500 | 0.25 | 0.75 | ||||
| 3. Testing products | Test hours | 20,000 | 0.6 | 0.4 | ||||
| ABC assignments | $155,000 | $155,000 | ||||||
| Total |
$310,000 |
Required:
1. Form reduced system cost pools for activities 7 and 8. Do not round interim calculations. Round your final answers to the nearest dollar.
| Inserting dies cost pool | $ |
| Purchasing cost pool | $ |
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