Give me Answer SKY COMPANY USES ACTIVITY-BASED COSTING. THECOMPANY HAS TWO PRODUCTS: A AND B. THE ANNUALPRODUCTION AND SALES OF PRODUCT A ARE 8,000 UNITSAND OF PRODUCT, B IS 6,000 UNITS. THERE ARE THREEACTIVITY COST POOLS, WITH THE TOTAL COST AND TOTALACTIVITY AS FOLLOWS:TOTAL ACTIVITYACTIVITYTOTALPRODUCTCOST POOLCOSTAACTIVITY 1$25,000250PRODUCT TOTALB400650ACTIVITY 2 $47,000 8004001,200ACTIVITY 3$71,200 8002,0002,800THE ACTIVITY-BASED COSTINGCOST PERUNIT OFPRODUCT A IS

Concept of Activity-Based Costing (ABC)Activity-Based Costing (ABC) is a method used to allocate…

Answered: SKY COMPANY USES ACTIVITY-BASED…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 5PA: Medical Tape makes two products: Generic and Label. It estimates it will produce 423,694 units of...

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The following product Costs are available for Haworth Company on the production of chairs: direct materials, $15,500; direct labor, $22.000; manufacturing overhead, $16.500; selling expenses, $6,900; and administrative expenses, $15,200. What are the prime costs? What are the conversion costs? What is the total product cost? What is the total period cost? If 7,750 equivalent units are produced, what is the equivalent material cost per unit? If 22,000 equivalent units are produced, what is the equivalent conversion cost per unit?
Cicleta Manufacturing has four activities: receiving materials, assembly, expediting products, and storing goods. Receiving and assembly are necessary activities; expediting and storing goods are unnecessary. The following data pertain to the four activities for the year ending 20x1 (actual price per unit of the activity driver is assumed to be equal to the standard price): Required: 1. Prepare a cost report for the year ending 20x1 that shows value-added costs, non-value-added costs, and total costs for each activity. 2. Explain why expediting products and storing goods are non-value-added activities. 3. What if receiving cost is a step-fixed cost with each step being 1,500 orders whereas assembly cost is a variable cost? What is the implication for reducing the cost of waste for each activity?
Pat Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A is 8,000 units and of Product B is 2,000 units. There are three activity cost pools, with estimated total cost and expected activity as follows: Expected Activity Activity Cost Pool Estimated Cost Product A Product B Total Activity 1…………… $12,000 750 250 1,000 Activity 2…………… $16,000 400 100 500 Activity 3…………… $36,000 2,000 1,000 3,000 The cost per unit of Product B under activity-based costing is closest to: A. $10.67. B. $6.40. C. $6.00. D. $9.10.
Abel Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A is 200 units and of Product B is 400 units. There are three activity cost pools, with estimated costs and expected activity as follows: Expected Activity Activity Cost Pool Estimated Cost Product A Product B Total Activity 1............... $16,660 600 100 700 Activity 2............... $18,450 1,100 700 1,800 Activity 3............... $9,731 60 160 220 The cost per unit of Product B is closest to: Select one: a. $74.73 b. $37.59 c. $81.53 d. $17.69 e. $41.58
ABC Company uses activity-based costing to allocate MOH. The company has 2 products d and e. The annual production of sales of Product d are 1,000 units and product e is 3000 units. There are three activity cost pool of MOH with an estimated total cost of $69,000. What is the MOH cost per unit for product d under activity-based costing? Expected Activity (Allocation base) Total Activity Cost pool (for MOH) Activity 1 Activity 2 Activity 3 Estimated Cost of MOH Product d Product e $9000 500 500 1000 12000 200 200 500 48,000 500 1100 1600
Abbe Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A is 2,100 units and of Product B is 1,200 units. There are three activity cost pools, with estimated costs and expected activity as follows: Estimated Expected Activity Overhead Activity Cost Pools Activity 1 Activity 2 Activity 3 Cost Product A Product B Total $60,791 $83,421 1,600 2,600 1,500 1,300 3,100 3,900 $97,442 840 820 1,660 The overhead cost per unit of Product B is closest to: (Round your intermediate calculations to 2 decimal places.) Multiple Choice $63.47 $87.80 $33 99
The activity based costing cost per unit
USING ACTIVITY BASED CSOTING, WHAT IS THE APPROXIMATE COST PER UNIT OF COATS
Moistner, Inc., manufactures and sells two products: Product E6 and Product W9. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: Expected Production Direct Labor-Hours Per Unit Total Direct Labor-Hours Product E6 700 7.0 4,900 Product W9 100 5.0 500 Total direct labor-hours 5,400 The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Estimated Expected Activity Activity Cost Pools Activity Measures Overhead Cost Product E6 Product W9 Total Labor-related DLHs $ 233,604 4,900 500 5,400 Machine setups setups 30,942 500 400 900 Order size MHs 712,045 4,200 4,300 8,500 $ 976,591 If the company allocates all of its overhead based on direct labor-hours using its traditional costing method, the overhead assigned to each unit of…
A company uses activity-based costing. The company makes two products: A and B. The annual production and sales of A is 400 units at $70 per unit and of B is 200 units at $90 per unit. Direct period costs are $3.000 for each product. There are three activity cost pools, with total allocated cost are as follows: Activity Cost Pools A B. Total Cost Activity 1 Activity 2 Activity 3 $4,280 $2,380 $6,660 1,275 7,175 8,450 2,654 6,877 १531 If the total of direct materials and direct labor costs for Product A is $20,000, the product margin for Product A is: (Enter a number in the box, use a negative sign for a product margin loss) $
SIM Power Ltd., manufactures and sells two products: Product K1 and Product S6. Data concerning the expected production of each product and the expected total direct labour-hours (DLHs) required to produce that output appear below: Expected Production Direct Labour-Hours Per Unit Total DirectLabour-Hours Product K1 500 8.0 4,000 Product S6 100 5.0 500 Total direct labour-hours 4,500 The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Estimated Expected Activity Activity Cost Pools Activity Measures Overhead Cost Product K1 Product S6 Total Labour-related DLHs $127,485 4,000 500 4,500 Production orders orders 27,820 400 600 1,000 General factory MHs 452,868 4,000 3,800 7,800 $608,173 The total overhead cost assigned to of Product S6 under activity-based costing is closest to: Question 11 options:…
TCM Company has two products: A and B. The company uses activity cased costing and has prepared the following analysis showing the estimated total manufacturing overhead cost and expected activity for each of the company's three activity cost pools: Expected Activity (Allocation base) Total Estimated Activity Cost pool Activity 1 Activity 2 Activity 3 The annual production and sales of product A is 4547 units. The annual sales and production of product B is 7913. мон Product A Product B 20000 100 400 500 14625 500 250 750 60000 300 2700 3000 What is the total manufacturing over allocated to product B under activity-based costing?

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