The Vistavia Group, a marketing research firm, has budgeted the following overhead costs and cost drivers for 2023 (10,000 direct labor hours were budgeted for 2023): Activities Cost Driver Phoning Number of calls Personal visits Miles driven Mailing Number of mailings The following data was collected on three of the 50 market research studies completed in 2023: Study #7 900 140 500 7,000 $6,020 $15,660 Miles driven Direct labor hours Number of calls Number of mailings Direct materials cost Direct labor cost Budgeted Cost $25,000 $10,000 $15,000 Budgeted Activity Level 80,000 50,000 40,000 2. Using ABC, calculate the total cost of Study #7: $ Study #8 1,300 110 300 6,000 $5,425 $12,235 Study #9 1,600 175 700 2,000 $4,885 $19,650 1. Using volume-based costing with direct labor hours as the cost driver, calculate the total cost of Study #8: $

The Vistavia Group, a marketing research firm, has budgeted the following overhead costs and cost drivers for 2023 (10,000 direct labor hours were budgeted for 2023): Activities Cost Driver Phoning Number of calls Personal visits Miles driven Mailing Number of mailings The following data was collected on three of the 50 market research studies completed in 2023: Study #7 900 140 500 7,000 $6,020 $15,660 Miles driven Direct labor hours Number of calls Number of mailings Direct materials cost Direct labor cost Budgeted Cost $25,000 $10,000 $15,000 Budgeted Activity Level 80,000 50,000 40,000 2. Using ABC, calculate the total cost of Study #7: $ Study #8 1,300 110 300 6,000 $5,425 $12,235 Study #9 1,600 175 700 2,000 $4,885 $19,650 1. Using volume-based costing with direct labor hours as the cost driver, calculate the total cost of Study #8: $

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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