Assume a service company has implemented an activity-based costing system with five activities as shown below:Activity Cost Pool (Activity Measure)Customer deliveries (Number of deliveries)Manual order processing (Number of manual orders)Electronic order processing (Number of electronic orders)Line item picking (Number of line items picked)Other organization-sustaining costs (None)Total CostTotal Activity$ 400,000$ 280,000$ 150,000$ 450,000$ 300,0008,000 deliveries5,000 manual orders15,000 electronic orders375,000 line itemsThe company serves numerous customers, two of which include Hospital A and Hospital B. The activity demands pertaining to these two customersare as follows:ActivityHospital AHospital BActivity MeasureNumber of deliveriesNumber of manual ordersNumber of electronic ordersNumber of line items picked8.2530150.115250How much total activity cost should be assigned to Hospital A for internal management purposes?Multiple Choice$785< Prev 22 of 23NextMacBook Air

Name: Assume a service company has implemented an activity-based costing sy
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Description: Assume a service company has implemented an activity-based costing system with five activities as shown below:Activity Cost Pool (Activity Measure)Customer deliveries (Number of deliveries)Manual order processing (Number of manual orders)Electronic

Using activity based costing, the overhead is applied to the job depending on various activities.

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ssume a service company has implemented an activity-based costing system with five activities as shown below: Activity Cost Pool (Activity Measure) Customer deliveries (Number of deliveries) Manual order processing (Number of manual orders) Electronic order processing (Number of electronic orders) Line item picking (Number of line items picked) Other organization-sustaining costs (None) Total Cost Total Activity 8,000 deliveries 5,000 manual orders $ 400,000 $ 280,000 $ 150,000 $ 450,000 $ 300,000 15,000 electronic orderS 375,000 line items The company serves numerous customers, two of which include Hospital A and Hospital B. The activity demands pertaining to these two customers are as follows: Activity Activity Measure Hospital A Hospital B 8 25 Number of deliveries 30 Number of manual orders 15 Number of electronic orders 115 250 Number of line items picked How much total activity cost should be assigned to Hospital A for internal management purposes? Multiple Choice $785 Next >

ssume a service company has implemented an activity-based costing system with five activities as shown below: Activity Cost Pool (Activity Measure) Customer deliveries (Number of deliveries) Manual order processing (Number of manual orders) Electronic order processing (Number of electronic orders) Line item picking (Number of line items picked) Other organization-sustaining costs (None) Total Cost Total Activity 8,000 deliveries 5,000 manual orders $ 400,000 $ 280,000 $ 150,000 $ 450,000 $ 300,000 15,000 electronic orderS 375,000 line items The company serves numerous customers, two of which include Hospital A and Hospital B. The activity demands pertaining to these two customers are as follows: Activity Activity Measure Hospital A Hospital B 8 25 Number of deliveries 30 Number of manual orders 15 Number of electronic orders 115 250 Number of line items picked How much total activity cost should be assigned to Hospital A for internal management purposes? Multiple Choice $785 Next >

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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Assume a service company has implemented an activity-based costing system with five activities as shown below: Activity Cost Pool (Activity Measure) Total Cost Total Activity $ 400,000 $ 280,000 $ 150,000 $ 450,000 $ 300,000 Customer deliveries (Number of deliveries) Manual order processing (Number of manual orders) 8,000 deliveries 5,000 manual orders Electronic order processing (Number of electronic orders) 15,000 electronic orders Line item picking (Number of line items picked) Other organization-sustaining costs (None) 375,000 line items The company serves numerous customers, two of which include Hospital A and Hospital B. The activity demands pertaining to these two customers are as follows: Activity Activity Measure Hospital A Hospital B Number of deliveries 12 25 Number of manual orders 30 Number of electronic orders 15 Number of line items picked 130 250 How much total activity cost should be assigned to Hospital A for internal management purposes?
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