Strama, Inc., manufactures and sells two products: Product A6 and Product 15. The company has an activity-based costing system with the following activity cost pools, activity measures, and expectedactivityEstimatedExpected ActivityActivityOverheadActivity Cost PoolsLabor-relatedProduction ordersMeasuresCost$181,13839,624173,147Product A6Product I51,800TotalDLHS7,2004009,000orders6001,000Order sizeMHS4,6004,7009,300$393,909The activity rate for the Order Size activity cost pool under activity-based costing is closest to:Multiple Cholce$23.74 per MH$100.63 per MH$43.77 per MH< Prev2 of 10Noxt >自。92 F AQI 61ype here to searchDELL

Activity-based costing (ABC) is a method of managerial accounting that assigns overhead expenses to…

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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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Larner Corporation is a diversified manufacturer of industrial goods. The company's activity-based costing system contains the following six activity cost pools and activity rates: Activity Cost Pool Labor-related Machine-related Machine setups Production orders Shipments General factory $ 120.00 per shipment $ 10.00 per direct labor-hour Cost and activity data have been supplied for the following products: Direct labor-hours Machine-hours Machine setups Production orders Shipments Activity Rates $ 6.00 per direct labor-hour $ 10.00 per machine-hour Direct materials cost per unit Direct labor cost per unit Number of units produced per year $50.00 per setup $ 100.00 per order Unit product cost J78 Total Expected Activity 378 1,400 2,400 8 98 6 B52 30 30 1 1 1 Required: Compute the unit product cost of each product listed above. (Do not round intermediate calculations. Round your answers to 2 decimal places.) B52 J78 $ 4.50 $ 5.00 2,000 B52 $26.00 $6.00 100
How do you compute the operating income for each of the three activites
Lion Corporation uses an activity-based costing system to assign overhead costs to products. In the first stage, two overhead costs--equipment depreciation and supervisory expense-are allocated to three activity cost pools--Machining, Order Filling, and Other--based on resource consumption. Data to perform these allocations appear below: Overhead costs: Equipment depreciation Supervisory expense Equipment depreciation Distribution of Resource Consumption Across Activity Cost Pools: Product C9 $ 47,000 Product UO $ 6,000 Total Supervisory expense 0.60 Activity Cost Pools O $18.00 per MH O $5.30 per MH O $2.82 per MH O $3.18 per MH Mac 0.60 In the second stage, Machining costs are assigned to products using machine- hours (MHS) and Order Filling costs are assigned to products using the number of orders. The costs in the Other activity cost pool are not assigned to products. Activity data for the company's two products follow: 6,900 Order Filling 3,100 0.10 MHS (Machining) 10,000 b.20 200…
karan subject-Accounting
Walsh Corporation uses an activity-based costing system to assign overhead costs to products. In the first stage, two overhead costs- equipment depreciation and supervisory expense-are allocated to three activity cost pools--Mach g. Order Filling, and Other-based on resource consumption. Data to perform these allocations appear below: Overhead costs: Equipment depreciation $47,000 Supervisory expense Distribution of Resource Equipment depreciation Supervisory expense $6,000 Consumption Across Activity Cost Pools: Activity: Activity Cost Pools Machining Order Filling Other 0.60 0.30 0.60 0.20 0.10 0.20 In the second stage, Machining costs are assigned to products using machine-hours (MHS) and Order Filling costs are assigned to products using the number of orders. The costs in the Other activity cost pool are not assigned to products. Activity data for the company's two products follow: MHS (Machining) Orders (Order Filling) n
FDC-11063 Incorporated, manufactures and sells two products: Product Z1 and Product Z8. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Activity Cost Pools Activity Measures Labor-related DLHS Estimated Overhead Cost $ 145,000 Expected Activity Product Z1 Product Z8 Total 4,000 2,000 6,000 Machine setups Order size setups MHS 68,360 1,069,190 1,100 300 1,400 2,700 3,100 5,800 $ 1,282,550 The activity rate for the Order Size activity cost pool under activity-based costing is closest to: Multiple Choice О $98.53 per MH О $257.34 per MH $184.34 per MH $196.13 per MH
Chrzan, Incorporated, manufactures and sells two products: Product EO and Product NO. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: Product E0 Product Ne Total direct labor-hours Activity Cost Pools Labor-related Production orders Order size The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Estimated Overhead Cost Multiple Choice $33.94 per MH $54.20 per MH Direct Expected Labor-Hours Production Per Unit 10.1 410 1,550 9.1 $51.98 per MH $21.40 per MH Activity Measures DLHS orders MHs Total Direct Labor- Hours $ 301,890 61,087 585,366 $948,343 The activity rate for the Order Size activity cost pool under activity-based costing is closest to: 4,141 14, 105 18,246 Product E 4,141 850 5,550 Expected Activity Product NO 14, 105 950 5,250 Total 18,246 1,800 10,800
Larner Corporation is a diversified manufacturer of industrial goods. The company's activity-based costing system contains the following six activity cost pools and activity rates: Activity Cost Pool Labor-related Machine-related Machine setups Production orders Shipments $ 140.00 per shipment General factory $ 7.00 per direct labor-hour Cost and activity data have been supplied for the following products: Direct labor-hours Machine-hours Machine setups Production orders Shipments Activity Rates $7.00 per direct labor-hour Direct materials cost per unit Direct labor cost per unit Number of units produced per year $7.00 per machine-hour $30.00 per setup $200.00 per order Unit product cost Total Expected Activity J78 378 1,200 2,200 6 5 7 B52 30 50 1 1 1 Required: Compute the unit product cost of each product listed above. (Do not round intermediate calculations. Round your answers to 2 decimal places.) B52 378 $5.50 $ 4.75 4,000 B52 $32.00 $9.00 100
Jay Give me correct answer with explanation..
Foam Products, Inc., makes foam seat cushions for the automotive and aerospace industries. The company’s activity-based costing system has four activity cost pools, which are listed below along with their activity measures and activity rates: Activity Cost Pool Activity Measure Activity Rate Supporting direct labor Number of direct labor-hours $ 12 per direct labor-hour Batch processing Number of batches $ 94 per batch Order processing Number of orders $ 278 per order Customer service Number of customers $ 2,633 per customer The company just completed a single order from Interstate Trucking for 2,300 custom seat cushions. The order was produced in two batches. Each seat cushion required 0.7 direct labor-hours. The selling price was $141.10 per unit, the direct materials cost was $108 per unit, and the direct labor cost was $14.00 per unit. This was Interstate Trucking’s only order during the year. Required: Prepare a report showing the customer margin…
Klumper Corporation Is a diversified manufacturer of Industrial goods. The company's activity-based costing system contalns the following stx activity cost pools and activity rates: Activity Cost Pool Supporting direct labor Machine processing Machine setups Production orders Activity Rates $8 per direct labor-hour $ 3 per machine-hour $ 35 per setup $ 160 per order $ 120 per shipment $ 875 per product Shipments Product sustaining Activity data have been supplied for the following two products: Total Expected Activity K425 M67 Number of units produced per year 2,000 50 200 Direct labor-hours 1,825 3,480 13 Machine-hours 40 Machine setups Production orders Shipments Product sustaining 2 13 2 26 2 Requlred: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system? Activity Cost Pool K425 M67 Supporting direct labor Machine processing Machine setups Production orders Shipments Product sustaining Total overhead cost 이 $
YKPBNO412 Corp., manufactures and sells two products: Product TOTEMO and Product SUGOI. YKPBNO412 has an activity-based costing system with the following activity cost pools, activity measures, and expected activity: (ID#60553) Activity Cost Pools Labor-related Production orders Order size Multiple Choice O O $535,150 $914,020 $467,602 Activity Measures DLHS orders MHS $1,038,880 Estimated Overhead Cost $ 132,400 62,430 976,450 $1,171,280 (Baruch College Exam) Q) What is YKPBNO412's total overhead applied to Product SUGOI under activity-based costing? (choose the closest answer) (Round your intermediate calculations to 2 decimal places.) Product TOTEMO 1,800 1,000 3,700 Expected Activity Product SUGOI 900 600 3,400 Total 2,700 1,600 7,100 HE

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