TB MC Qu. 4-24 (Static) Privott, Incorporated, manufactures... Privott, Incorporated, manufactures and sells two products: Product Z9 and Product NO. The company is considering adopting an activity- based costing system with the following activity cost pools, activity measures, and expected activity: Estimated Overhead Cost $ 324,018 Expected Activity Activity Cost Pools Activity Measures Product Z9 Product NO Total Labor-related DLHS Product testing tests Order size MHs 45,747 471,108 6,400 400 3,000 9,400 500 900 4,000 4,300 8,300 $ 840,873 The activity rate for the Labor-Related activity cost pool under activity-based costing is closest to: Multiple Choice $91.49 per DLH $934.30 per DLH $114.37 per DLH

TB MC Qu. 4-24 (Static) Privott, Incorporated, manufactures... Privott, Incorporated, manufactures and sells two products: Product Z9 and Product NO. The company is considering adopting an activity- based costing system with the following activity cost pools, activity measures, and expected activity: Estimated Overhead Cost $ 324,018 Expected Activity Activity Cost Pools Activity Measures Product Z9 Product NO Total Labor-related DLHS Product testing tests Order size MHs 45,747 471,108 6,400 400 3,000 9,400 500 900 4,000 4,300 8,300 $ 840,873 The activity rate for the Labor-Related activity cost pool under activity-based costing is closest to: Multiple Choice $91.49 per DLH $934.30 per DLH $114.37 per DLH

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter4: Activity-based Costing

Section: Chapter Questions

Problem 8CE: Electan Company produces two types of printers. The company uses ABC, and all activity drivers are...

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Contribution margin by segment The following information is for LaPlanche Industries Inc.: Determine the contribution margin for (A) Product YY and (B) West Region.
Scarborough Company has two products: C and D. The company usesactivity - based costing. The estimated total cost and expected activity foreach of the company's three activity cost pools are as follows:Expected ActivityActivity Cost Pool Estimated Cost Product C Product D TotalActivity 1 S17, 848 S17, 848 100 800Activity 2 S16,350 618 150 768Activity 3 S22, 185 842 120 962How much of Activity 1 is expected to be allocated to Product C? Multiple Choice S22, 310.00S17, 848.00S15, 617.00S2, 231.00
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Help Save & Exit Submit TB MC Qu. 7-52 (Algo) Eccles Corporation uses an activity-based costing... Eccles Corporation 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: Wages and salaries Depreciation Utilities $ 318,000 247,000 206,000 $ 771,000 Total Distribution of resource consumption: Activity Cost Pools Setting Up Assembly Other Total Wages and salaries Depreciation Utilities 30% 10% 45% 25% 100% 30% 20% 60% 100% 50% 30% 100% How much cost, in total, would be allocated in the first-stage allocation to the Assembly activity cost pool? Multiple Choice, hp
Ayala Inc. has conducted the following analysis related to its product lines, using a traditional costing system (volume-based) and an activity-based costing system. Both the traditional and the activity-based costing systems include direct materials and direct labor costs. Products Product 540X Product 137Y Product 2495 Sales Revenue $208,000 155,000 92.000 Total Costs Traditional $54,000 48,000 23.000 ABC $49,000 30,000 46,000
Explain the concept of a pool rate in activity-based costing.
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
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