**Activity-Based Costing Analysis**The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity:| **Activity Cost Pools** | **Activity Measures** | **Estimated Overhead Cost** | **Expected Activity** ||-------------------------|-----------------------|-----------------------------|-----------------------|| | | | **Product G8** | **Product Q9** | **Total** || Labor-related | DLHs | $59,555 | 4,524 | 1,064 | 5,588 || Machine setups | setups | 58,390 | 800 | 640 | 1,440 || Order size | MHs | 369,508 | 5,200 | 5,900 | 11,100 || | | **$487,453** | | | |**Question:**Which of the following statements concerning the unit product cost of Product G8 is true? *(Round your intermediate calculations to 2 decimal places.)***Multiple Choice:**- [ ] The unit product cost of Product G8 under traditional costing is less than its unit product cost under activity-based costing by $300.66.- [ ] The unit product cost of Product G8 under traditional costing is less than its unit product cost under activity-based costing by $180.58.- [ ] The unit product cost of Product G8 under traditional costing is greater than its unit product cost under activity-based costing by $300.66.- [ ] The unit product cost of Product G8 under traditional costing is greater than its unit product cost under activity-based costing by $180.58. Large, Inc., manufactures and sells two products: Product G8 and Product O0. Historically, the firm has used a traditional costing system, with direct labor-hours as an activity base, to allocate manufacturing overhead to products. 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 G8** | 780 | 5.8 | 4,524 || **Product O0** | 380 | 2.8 | 1,064 || **Total** | | | 5,588 |The direct labor rate is $22.90 per DLH. The direct materials cost per unit for each product is given below:| | Direct Materials Cost per Unit ||------------------|--------------------------------|| **Product G8** | $121.10 || **Product O0** | $121.50 |The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity:| Activity Cost Pools | Activity Measures | Estimated Overhead Cost | Expected Activity ||---------------------|-------------------|-------------------------|-----------------------|| | | | **Product G8** | **Product O0** | **Total** || **Labor-related** | DLHs | $99,555 | 4,524 | 1,064 | 5,588 || **Machine setups** | setups | $58,390 | 800 | 640 | 1,440 || **Order size** | MHs | $369,508 | 5,200 | 5,900 | 11,100 || **Total** | | $487,453 | | | |**Question:**Which of the following statements concerning the unit product cost of Product G8 is true? (Round your intermediate calculations to 2 decimal places.)

Under traditional method single cost driver are used to allocate cost where as under ABC ( activity…

The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Expected Activity Activity Cost Pools Labor-related Machine setups Order size Activity Measures Multiple Choice DLHS setups MHS Estimated Overhead Cost $ 59,555 58,390 369,508 $487,453 Product G8 Product 00 4,524 1,064 800 640 5,200 5,900 Total 5,588 1,440 11,100 Which of the following statements concerning the unit product cost of Product G8 is true? (Round your intermediate calculations to 2 decimal places.) The unit product cost of Product G8 under traditional costing is less than its unit product cost under activity-based costing by $300.66. The unit product cost of Product G8 under traditional costing is less than its unit product cost under activity-based costing by $180.58. The unit product cost of Product G8 under traditional costing is greater than its unit product cost under activity-based costing by $300.66. The unit product cost of Product G8 under traditional costing is greater than its unit product cost under activity-based costing by $180.58.

The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Expected Activity Activity Cost Pools Labor-related Machine setups Order size Activity Measures Multiple Choice DLHS setups MHS Estimated Overhead Cost $ 59,555 58,390 369,508 $487,453 Product G8 Product 00 4,524 1,064 800 640 5,200 5,900 Total 5,588 1,440 11,100 Which of the following statements concerning the unit product cost of Product G8 is true? (Round your intermediate calculations to 2 decimal places.) The unit product cost of Product G8 under traditional costing is less than its unit product cost under activity-based costing by $300.66. The unit product cost of Product G8 under traditional costing is less than its unit product cost under activity-based costing by $180.58. The unit product cost of Product G8 under traditional costing is greater than its unit product cost under activity-based costing by $300.66. The unit product cost of Product G8 under traditional costing is greater than its unit product cost under activity-based costing by $180.58.

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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TCM Company uses activity-based costing to determine products costs for external financial reports. The company has provided the following data concerning its activity-based costing system: Activity cost pools (and activity measures) Depreciation (allocated based on machine-hours) Batch setup (allocated based on # of set ups) General Factory (allocated based on direct labor hours) Estimated Overhead costs $67,500 273,700 204,000 Expected Activity (Allocation base) Product y Product x Activity Cost pool Depreciation Batch setup General factory The activity rate for the general factory activity cost pool is? Total 5000 m hours 4000 1000 7000 set ups 3000 4000 8000 dl hours 1000 7000
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naion manufactures two models of office chairs, a standard and a deluxe model. The following activity and cost information has been compiled: Number of Number of Number of Product Setups Components Direct Labor Hours 16 Standard 265 Deluxe 34 14 245 Overhead costs $50,000 $58.900 Nrter of setups and number of components are identified as activity- cost drivers for overhead. Assuming an activity - based costing system is used, what is the total amount of overhead costs assigned to the standard modela OA $54,600 OB $77 400 OC. S54,450 O0 $31.500 O Time Remaining: 02:58:03 Next
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what is the labor-related activity cost pool per DLH what is the machine-related activity cost pool per MH what is the machine setups activity cost pool per seteup what is the production orders activity cost per order what is the product testing activity cost per test what is the packaging activity cost per package what is the general factory activity cost per DLH
Garrell Corporation is conducting a time-driven activity-based costing study in its Customer Support Department. The company has provided the following data to aid in that study: Time-driven activity rate (cost per unit of activity) Activity cost pool: Receiving Calls Resolving Issues Settling Disputes Cost Object Data: Number of calls received Number of issues resolved Number of disputes settled Customer P 31 17 1 $5.46 $8.58 $13.26 Customer Q 21 10 Required: Using time-driven activity-based costing, determine the total Customer Support Department cost assigned to cach customer.
Roca, Incorporated, manufactures and sells two products: Product M6 and Product X7. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Estimated Overhead Cost Activity Cost Pools Labor-related Production orders Order size Multiple Choice O $360,294 O $443.424 O $369,879 Activity Measures DLHs orders MHS O $249,264 $ 152,100 63,035 505,452 $ 720,587 The total overhead applied to Product X7 under activity-based costing is closest to: (Round your Intermediate calculations to 2 decimal places.) Expected Activity Product M6 Product X7 3,000 400 4,800 300 3,700 3,600 saved Total 7,800 700 7,300
Arial Company has two products: A and B. The company uses activity-based costing. The total cost and activity for each of the company's three activity cost pools are as follows: Total Activity Activity Cost Pool Total Cost Product A Product B Total Activity 1 $ 38,000 800 500 1,300 Activity 2 $ 29,040 780 600 1,380 Activity 3 $ 26,600 900 650 1,550 The activity rate under the activity-based costing system for Activity 3 is:
Activity-Based Costing CardioTrainer Equipment Company manufactures stationary bicycles and treadmills. The products are produced in the Fabrication and Assembly production departments. In addition to production activities, several other activities are required to produce the two products. These activities and their associated activity rates are as follows: Activity Activity Rate Fabrication $22 per machine hour (mh) Assembly $12 per direct labor hour (dlh) Setup $40 per setup Inspecting $18 per inspection Production scheduling $8 per production order Purchasing $5 per purchase order The activity-base usage quantities and units produced for each product were as follows: Stationary Bicycle Treadmill Machine hours 1,680 1,070 Direct labor hours 243 131 Setups 45 20 Inspections 158 94 Production orders 60 32 Purchase orders 240 98 Units produced 500 350
please answer within the format by providing formula the detailed workingPlease provide answer in text (Without image)Please provide answer in text (Without image)Please provide answer in text (Without image) Question Content Area Activity rates and product costs using activity-based costing Idris Inc. manufactures entry and dining room lighting fixtures. Five activities are used in manufacturing the fixtures. These activities and their associated budgeted activity costs and activity bases are as follows: Activity BudgetedActivity Cost Activity Base Casting $640,000 Machine hours Assembly 125,000 Direct labor hours Inspecting 30,000 Number of inspections Setup 28,000 Number of setups Materials handling 20,000 Number of loads Corporate records were obtained to estimate the amount of activity to be used by the two products. The estimated activity-base usage quantities and units produced follow: Activity Base Entry Dining Total Machine hours 7,500 12,500 20,000…
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