[The following information applies to the questions displayed below.]Adria Company recently implemented an activity-based costing system. At the beginning of the year, management madethe following estimates of cost and activity in the company's five activity cost pools:ExpectedActivityOverheadExpectedActivity6,500 DLHS2,400 orders700 receipts1,400 relays41,000 MHSActivity Cost PoolLabor-relatedMeasureCost$ 58,500$ 12,000$ 11, 200$ 14,000$369,000Direct labor-hoursPurchase ordersNumber of ordersMaterial receiptsRelay assemblyGeneral factoryNumber of receiptsNumber of relaysMachine-hours2. The expected activity for the year was distributed among the company's four products as follows:Expected ActivityActivity Cost PoolLabor-related (DLHS)Purchase orders (orders)Materials receipts (receipts)Relay assembly (relays)General factory (MHs)Product A Product B Product C Product D2,4005002,60072070080085033040011818234034028044016,2505,4004,10015, 250Using the ABC data, determine the total amount of overhead cost assigned to each product.Product AProduct BProduct CProduct D

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Description: [The following information applies to the questions displayed below.]Adria Company recently implemented an activity-based costing system. At the beginning of the year, management madethe following estimates of cost and activity in the company's five

Working Calculate activity rates for each activity cost pool using activity-based costing.…

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[The following information applies to the questions displayed below.] Adria Company recently implemented an activity-based costing system. At the beginning of the year, management made the following estimates of cost and activity in the company's five activity cost pools: Expected Overhead 三事 Activity Expected Activity 6,500 DLHS 2,400 orders 700 receipts 1,400 relays 41,000 MHS Activity Cost Pool Labor-related Measure Cost $ 58,500 $ 12,000 $ 11,200 $ 14,000 $369,000 Direct labor-hours Purchase orders Material receipts Relay assembly General factory Number of orders Number of receipts Number of relays Machine-hours 2. The expected activity for the year was distributed among the company's four products as follows: Expected Activity Activity Cost Pool Labor-related (DLHS) Purchase orders (orders) Materials receipts (receipts) Relay assembly (relays) General factory (MHs) Product A Product B Product C Product D 2,400 500 2,600 720 182 700 800 850 330 400 118 340 340 280 440 16, 250 5,400 4,100 15,250 Using the ABC data, determine the total amount of overhead cost assigned to each product. Product A Product B Product C Product D

[The following information applies to the questions displayed below.] Adria Company recently implemented an activity-based costing system. At the beginning of the year, management made the following estimates of cost and activity in the company's five activity cost pools: Expected Overhead 三事 Activity Expected Activity 6,500 DLHS 2,400 orders 700 receipts 1,400 relays 41,000 MHS Activity Cost Pool Labor-related Measure Cost $ 58,500 $ 12,000 $ 11,200 $ 14,000 $369,000 Direct labor-hours Purchase orders Material receipts Relay assembly General factory Number of orders Number of receipts Number of relays Machine-hours 2. The expected activity for the year was distributed among the company's four products as follows: Expected Activity Activity Cost Pool Labor-related (DLHS) Purchase orders (orders) Materials receipts (receipts) Relay assembly (relays) General factory (MHs) Product A Product B Product C Product D 2,400 500 2,600 720 182 700 800 850 330 400 118 340 340 280 440 16, 250 5,400 4,100 15,250 Using the ABC data, determine the total amount of overhead cost assigned to each product. Product A Product B Product C Product D

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 that company makes only two products: Product A and Product B. The company’s activity-based costing system has allocated $96,750 to an activity called machine setups. It is considering allocating the machine setups cost to its products using either the number of setups or setup hours as the activity measure. It gathered the following data with respect to these two potential activity measures: Product A Product B Number of machine setups 30 45 Number of setup hours per setup 6 6 If the company uses number of setup hours as the activity measure, how much machine setup activity cost would be allocated to Product A?
XYZ Co. 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 $160,000 Depreciation 320,000 Utilities 240,000 Total $ 720,000 Distribution of resource consumption: Activity Cost Pools Assembly Setting Up Other Total Wages and salaries 50% 40% 10% 100% Depreciation 10% 55% 35% 100% Utilities 15% 50% 35% 100% How much cost, in total, would be allocated in the first-stage allocation to the Assembly activity cost pool? a. $212,000 O b. $148,000 O c. $360,000 O d. $376,000 O e. None of the given answer is correct.
Gutknecht 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 Total Distribution of resource consumption: $ 300,000 180,000 240,000 $ 720,000 Wages and salaries Depreciation Utilities Activity Cost Pools Assembly 35% Setting Up Other Total 40% 25% 100% 5% 10% 60% 35% 100% 60% 30% 100% How much cost, in total, would be allocated in the first-stage allocation to the Other activity cost pool? O Multiple Choice $180,000 $216,000 $210,000 $138,000
A company which uses activity-based costing has two products: A and B. The annual production and sales of Product A is 12,000 units and of Product B is 10,500 units. There are three activity cost pools, with total cost and total activity as follows: Total Activity Product Product A Activity Cost Pool Total Cost Total Activity 1 Activity 2 Activity 3 52-54 $25,420 130 490 620 $38,400 $122,670 890 310 1,200 820 3,410 4,230 The activity-based costing cost per unit of Product A is closest to: (Round your intermediate calculations to 2 decimal places.) Multiple Choice $10.79 $1.60 $4.80 $3.10
MFCB Ltd uses an activity-based costing system for its overhead costs. The company has provided the following data from its activity-based costing system. Activity Cost Pool Total Cost (RM) Total Activity Cleaning 442,068 78,800 hours Job support 52,801 1,900 jobs Client support 9,170 350 clients Other 110,601 Not applicable Total 614,640 The expenses of idle capacity and organization-sustaining expenditures are included in the 'Other' activity cost pool. One particular client, DNO Ltd, requested 46 jobs during the year that required a total of 92 hours of housecleaning. For this service, the client was charged RM2,230. TASK: Compute the predetermined overhead rate if the company chooses cleaning hours as the allocation base.
Data concerning three of Kilmon Corporation’s activity cost pools appear below: Activity Cost Pools Estimated Overhead Cost Expected Activity Assembling products $ 65,540 4,520 assembly hours Designing products $ 578,112 3,011 product design hours Setting up batches $ 41,820 820 batch set-ups Required: Compute the activity rates for each of the three cost pools. (Round your answers to 2 decimal places.) Activities Activity rate Assembly products Designing products Setting up batches
Helm 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: Manufacturing overhead Selling and administrative expenses Total Distribution of resource consumption: Manufacturing overhead Selling and administrative expenses $304,500 $493,000 Activity Cost Pools Customer Support 85% 20% O $116,000 O $428,000 Order Size 5% 60% S S Other 10% 20% The "Other" activity cost pool consists of the costs of idle capacity and organization-sustaining costs. You have been asked to complete the first-stage allocation of costs to the activity cost pools. How much cost, in total, would be allocated in the first-stage allocation to the Customer Support activity cost 480,000 100,000 580,000 Total 100% 100%
Merlin Company provides the following ABC costing information: Activities Total Costs Activity-cost drivers Account inquiry hours $200,000 10,000 hours Account billing lines $140,000 4,000,000 lines Account verification accounts $75,000 40,000 accounts Correspondence letters $25,000 4,000 letters Total costs $440,000 The above activities are used by Departments A and B as follows: Department A Department B Account inquiry hours 2,000 hours 4,000 hours Account billing lines 400,000 lines 200,000 lines Account verification accounts 10,000 accounts 8,000 accounts Correspondence letters 1,000 letters 1,600 letters Required: a. How much of the correspondence costs will be assigned to Department B? b. How much of the total costs will be assigned to Department A?
XYZ has provided the following data from its activity-based costing system: Activity Cost Pool Total Cost Total Activity Assembly $ 228,060 18,000 machine-hours Processing orders $ 34,068 1,600 orders Inspection $ 125,560 1,720 inspection hours The company makes 420 units of product YBY a year, requiring a total of 460 machine-hours, 80 orders, and 10 inspection hours per year. The product's direct materials cost is $48.96 per unit and its direct labor cost is $25.36 per unit. According to the activity-based costing system, the average cost of product YBY is closest to: O a. $94.26 per unit O b. None of the given answer is correct. Oc $94.00 per unit O d. $95.77 per unit O e $93.99 per unit CLEAR MY CHOICE
Sultan Company uses an activity-based costing system. At the beginning of the year, the company made the following estimates of cost and activity for its five activity cost pools: Activity Cost Pool Activity Measure Expected Overhead Cost Expected Activity Labor-related Direct labor-hours $ 184,800 30,800 DLHs Purchase orders Number of orders $ 6,900 230 orders Parts management Number of part types $ 81,120 104 part types Board etching Number of boards $ 45,000 1,800 boards General factory Machine-hours $ 150,300 16,700 MHs Required: 1. Compute the activity rate for each of the activity cost pools. 2. The expected activity for the year was distributed among the company’s four products as follows: Activity Cost Pool Expected Activity Product A Product B Product C Product D Labor-related (DLHs) 7,000 14,300 4,400 5,100 Purchase orders (orders) 58 26 46 100 Parts management (part types) 30 18 37 19 Board etching (boards) 500 720 580 0 General factory…
XYZ has provided the following data from its activity-based costing system: Activity Cost Pool Total Cost Total Activity Assembly $228,060 18,000 machine-hours Processing orders $ 34,068 1,600 orders Inspection $125,560 1,700 inspection hours The company makes 420 units of product YBY a year, requiring a total of 460 machine-hours, 80 orders, and 20 inspection-hours per year. The product's direct materials cost is $48.96 per unit and its direct labor cost is $25.36 per unit. According to the activity-based costing system, the average cost of product YBY is closest to: O a. $93.99 per unit O b. None of the given answer is correct. O. $95.77 per unit O d. $94.00 per unit O e. $94.26 per unit CLEAR MY CHOICE MacBook Air 20 F3 F1 $ % & # 5 6. 7 8 1 2 3 4 T. Y Q W E と K F G تثبيت A (( S V alt الأوامر C. I R
Pharoah Co. has identified an activity cost pool to which it has allocated estimated overhead of $10212000. It has determined the expected use of cost drivers for that activity to be 851000 inspections. Widgets require 217000 inspections, Gadgets 167000 inspections, and Targets 467000 inspections. How much is the overhead assigned to each product? O Widgets $3404000, Gadgets $3404000, Targets $3404000 O Widgets $217000, Gadgets $167000, Targets $467000 O Widgets $3404000, Gadgets $1702000, Targets $5106000 O Widgets $2604000, Gadgets $2004000, Targets $5604000