Time left 0:56:08XYZ Co. manufactures three types of remote-control devices: X, Y, and Z. The company, which uses activity-based costing, has identified fiveactivities (and related cost drivers). Each activity, its budgeted cost, and related cost driver is identified below.ActivityCostCost DriverMaterial handling$225,000Number of partsMaterial insertion2,475,000Number of partsAutomated machinery840,000Machine hoursFinishing170,000Direct labor hoursPackaging170,000Orders shippedTotal$3,880.000The following information pertains to the three product lines for next year:YUnits to be produced10,0005,0002,000Orders to be shipped1,000500200Number of parts per unit101525Machine hours per unit1Labor hours per unit2Under an activity-based costing system, what is the per-unit overhead cost of X?O a.$164Ob.None of the given answers$282

Activity based costing (ABC) with the help of cost drivers, allocates the overheads to cost pools…

Time lert 0:56. XYZ Co. manufactures three types of remote-control devices: X, Y, and Z. The company, which uses activity-based costing, has identified five activities (and related cost drivers). Each activity, its budgeted cost, and related cost driver is identified below. Activity Cost Cost Driver Material handling $225,000 Number of parts Material insertion 2,475,000 Number of parts Automated machinery 840,000 Machine hours Finishing Packaging 170,000 Direct labor hours 170.000 Orders shipped Total $3.880.000 The following information pertains to the three product lines for next year: Y Units to be produced 10,000 5,000 2,000 Orders to be shipped 1,000 500 200 Number of parts per unit 10 15 25 Machine hours per unit 3 Labor hours per unit Under an activity-based costing system, what is the per-unit overhead cost of X? O a. $164 b. None of the given answers

Time lert 0:56. XYZ Co. manufactures three types of remote-control devices: X, Y, and Z. The company, which uses activity-based costing, has identified five activities (and related cost drivers). Each activity, its budgeted cost, and related cost driver is identified below. Activity Cost Cost Driver Material handling $225,000 Number of parts Material insertion 2,475,000 Number of parts Automated machinery 840,000 Machine hours Finishing Packaging 170,000 Direct labor hours 170.000 Orders shipped Total $3.880.000 The following information pertains to the three product lines for next year: Y Units to be produced 10,000 5,000 2,000 Orders to be shipped 1,000 500 200 Number of parts per unit 10 15 25 Machine hours per unit 3 Labor hours per unit Under an activity-based costing system, what is the per-unit overhead cost of X? O a. $164 b. None of the given answers

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Activity Rates and Product Costs using Activity-Based Costing Garfield 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 $560,000 Machine hours Assembly 75,000 Direct labor hours Inspecting 30,000 Number of inspections Setup 18,750 Number of setups Materials handling 14,000 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 Direct labor hours 2,000 3,000 5,000 Number of inspections 500 250 750 Number of setups 150 100 250 Number of loads 400 300 700 Units produced 5,000 2,500 7,500 a.…
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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 $ 86,070 4,530 assembly hours Designing products $ 605,412 3,012 product design hours Setting up batches $ 48,140 830 batch set-ups Required: Compute the activity rates for each of the three cost pools.
Dierich Company 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 $600,000 Selling and administrative expenses 220,000 Total $820,000 Distribution of Resource Consumption: Activity Cost Pools Order Size Customer Support Other Total Manufacturing overhead 15% 75% 10% 100% Selling and administrative expenses 60% 20% 20% 100% 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 Order Size activity cost pool? Multiple Choice $123,000 $222,000 $307,500 $492,000
Boswell Company manufactures two products, Regular and Supreme. Boswell's overhead costs consist of machining. $2400000; and assembling. $1200000. Information on the two products is: Direct labor hours Machine hours Number of parts Regular Supreme 10000 15000 30000 90000 160000 Ⓒ$2568000 $1440000. $2160000. $1032000. 10000 Overhead applied to Regular using activity-based costing is
O&G Company manufactures console tables and uses an activity-based costing system to allocate all manufacturing conversion costs. Each console table consists of 40 separate parts totaling $250 in direct materials and requires 5.0 hours of machine time to produce. Additional information follows: Activity Materials handling Allocation Base Number of parts Machine hours Number of parts Number of finished units Machining Assembling Packaging What is the number of finished console tables? OA 200 OB. 467 OC. 25 OD. Cannot be determined from the information given Cost Allocation Rate $3.00 per part $4.80 per machine hour $1.00 per part $4.00 per finished unit
Garfield Company manufactures three types of televisions: Model A, B and C. The company uses the activity-based costing, has identified five activities and its related cost drivers. Each activity, budgeted cost and related cost driver are as follows: (a) Materials handling, P112,500, number of parts; (b) Materials insertion, P1,237,500; number of parts; (c) Automated machinery, P420,000, machine hours; (d) Finishing, P85,000, direct labor hours; and (e) Packaging, P85,000, order shipped. The following information pertains to each product line for next year: (f) units produced (A, 5,000; B, 2,500; C, 1,000); (g) orders to be shipped (A 500, B 250, C 100); (h) number of parts per unit (A 5, B 7.50; C 12.50); (i) machine hours per unit (A 0.50; B 1.50; C 2.50) and (j) labor hours per unit (A 1; B 1, C 1). Under the activity-based costing, what is the total costs of B? P680,000 P228,235 P570,588 P440,000
Lemon Company manufactures three types of televisions: Model A, B and C. The company uses the activity-based costing, has identified five activities and its related cost drivers. Each activity, budgeted cost and related cost driver are as follows: (a) Materials handling, P112,500, number of parts; (b) Materials insertion, P1,237,500; number of parts; (c) Automated machinery, P420,000, machine hours; (d) Finishing, P85,000, direct labor hours; and (e) Packaging, P85,000, order shipped. The following information pertains to each product line for next year: (f) units produced (A, 5,000; B, 2,500; C, 1,000); (g) orders to be shipped (A 500, B 250, C 100); (h) number of parts per unit (A 5, B 7.50; C 12.50); (i) machine hours per unit (A 0.50; B 1.50; C 2.50) and (j) labor hours per unit (A 1; B 1, C 1). Under the activity-based costing, what is the total costs of A? P 570,588 P 680,000 P 820,000 P1,141,177
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%
Orange Company manufactures three types of televisions: Model A, B and C. The company uses the activity-based costing, has identified five activities and its related cost drivers. Each activity, budgeted cost and related cost driver are as follows: (a) Materials handling, P112,500, number of parts; (b) Materials insertion, P1,237,500; number of parts; (c) Automated machinery, P420,000, machine hours; (d) Finishing, P85,000, direct labor hours; and (e) Packaging, P85,000, order shipped. The following information pertains to each product line for next year: (f) units produced (A, 5,000; B, 2,500; C, 1,000); (g) orders to be shipped (A 500, B 250, C 100); (h) number of parts per unit (A 5, B 7.50; C 12.50); (i) machine hours per unit (A 0.50; B 1.50; C 2.50) and (j) labor hours per unit (A 1; B 1, C 1). Under the activity-based costing, what is the total costs of A? P 570,588 P 680,000 P 820,000 P1,141,177
Gable Company uses three activity pools. Each pool has a cost driver. Information for Gable Company follows: Total Cost of Pool $ 454,960 100,000 72,720 Estimated Cost Driver 96,800 10,000 505 Activity Pools Machining Designing costs Setup costs Suppose that Gable Company manufactures three products, A, B, and C. Information about these products follows: Product A Product B 38,000 4,000 40 Number of machine hours Number of design hours Number of batches Cost Driver Number of machine hours Number of design hours Number of batches Product A Product B Product C Total Overhead Assigned 48,000 2,200 170 Required: Using activity rates, determine the amount of overhead assigned to each product. Note: Do not round intermediate calculations. Round the final answer to nearest whole number. Product C 10,800 3,800 295
Lakeside Inc. manufactures four lines of remote control boats and uses activity-based costing to calculate product cost. Activity Cost Pools EstimatedTotal Cost Estimated Cost Driver Machining $ 334,000 13,600 machine hours Setup 76,000 420 batches Quality control 103,000 830 inspections Compute the activity rates for each of the following activity cost pools: How do you find the activitiy costs???

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