Homework Help is Here – Start Your Trial Now!
Business
Accounting
TB MC Qu. 4-49 Boesenhofer, Inc., manufactures and sells... Boesenhofer, Inc., manufactures and sells two products: Product N6 and Product N7, The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Estimated Expected Activity Activity Measures Overhead Activity Cost Pools Labor-related Machine setups Cost Product N6 Product N7 Total $345,060 128,534 DLHS 2,100 5,000 7,100 setups Order size 600 800 1,400 MHs 107,598 4,100 3,800 7,900 $581, 192 The activity rate for the Machine Setups activity cost pool is closest to: Multiple Choice $73.57 per setup $91.81 per setup

TB MC Qu. 4-49 Boesenhofer, Inc., manufactures and sells... Boesenhofer, Inc., manufactures and sells two products: Product N6 and Product N7, The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Estimated Expected Activity Activity Measures Overhead Activity Cost Pools Labor-related Machine setups Cost Product N6 Product N7 Total $345,060 128,534 DLHS 2,100 5,000 7,100 setups Order size 600 800 1,400 MHs 107,598 4,100 3,800 7,900 $581, 192 The activity rate for the Machine Setups activity cost pool is closest to: Multiple Choice $73.57 per setup $91.81 per setup

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
**Boesenhofer, Inc.: Activity-Based Costing Analysis** Boesenhofer, Inc. manufactures and sells two products: Product N6 and Product N7. The company uses an activity-based costing system with defined activity cost pools, activity measures, and expected activity: **Activity Cost Pools Analysis** | Activity Cost Pools | Activity Measures | Estimated Overhead Cost | Expected Activity | |---------------------|-------------------|-------------------------|-------------------| | | | | Product N6 | Product N7 | Total | | Labor-related | DLHs | $345,600 | 2,100 | 5,000 | 7,100 | | Machine setups | setups | $128,534 | 600 | 800 | 1,400 | | Order size | MHs | $107,058 | 4,100 | 3,800 | 7,900 | | **Total** | | **$581,192** | | | | The activity rate for the Machine Setups activity cost pool is calculated. The multiple-choice question asks for the activity rate per setup: - $73.57 per setup - $91.81 per setup **Explanation of Table:** - **Activity Cost Pools**: Categories defining activities contributing to overhead. - **Activity Measures**: Units quantifying each activity type (e.g., DLHs for labor-hours, setups for machine setups, and MHs for machine hours). - **Estimated Overhead Cost**: The predicted cost associated with each activity pool. - **Expected Activity**: The projected volume of each activity measure for Product N6 and Product N7, summing to a total for each pool. This analysis helps in understanding how overhead costs are distributed across different products using specified activities, enabling more accurate product costing.
Transcribed Image Text:**Boesenhofer, Inc.: Activity-Based Costing Analysis** Boesenhofer, Inc. manufactures and sells two products: Product N6 and Product N7. The company uses an activity-based costing system with defined activity cost pools, activity measures, and expected activity: **Activity Cost Pools Analysis** | Activity Cost Pools | Activity Measures | Estimated Overhead Cost | Expected Activity | |---------------------|-------------------|-------------------------|-------------------| | | | | Product N6 | Product N7 | Total | | Labor-related | DLHs | $345,600 | 2,100 | 5,000 | 7,100 | | Machine setups | setups | $128,534 | 600 | 800 | 1,400 | | Order size | MHs | $107,058 | 4,100 | 3,800 | 7,900 | | **Total** | | **$581,192** | | | | The activity rate for the Machine Setups activity cost pool is calculated. The multiple-choice question asks for the activity rate per setup: - $73.57 per setup - $91.81 per setup **Explanation of Table:** - **Activity Cost Pools**: Categories defining activities contributing to overhead. - **Activity Measures**: Units quantifying each activity type (e.g., DLHs for labor-hours, setups for machine setups, and MHs for machine hours). - **Estimated Overhead Cost**: The predicted cost associated with each activity pool. - **Expected Activity**: The projected volume of each activity measure for Product N6 and Product N7, summing to a total for each pool. This analysis helps in understanding how overhead costs are distributed across different products using specified activities, enabling more accurate product costing.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS