[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

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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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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
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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
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