Use the following information to answer questions the next two questions: Border Corporation identified the following activities related to annual expected overhead costs at the beginning of 2018. Expected Overhead Activity Moving Materials Inspections Ordering Maintenance Expected Cost $ 16,000 $ 22,400 $ 13,900 $161,200 Expected Expected Activity Driver Number of moves Quantity 500 Number of inspection hours 350 2,780 6,200 Number of orders Machine hours The company's normal activity is 5,000 direct labor hours per year. During January 2018, the company reported the following for two of its products: Product A ProductB Direct materials $2,575 $2,100 40 $2,810 $3,300 50 Direct labor Units completed Direct labor hours 80 11 50 50 120 5 8 Number of material moves Number of inspection hours Number of orders 20 90 Machine hours 70 If Border Corporation uses direct labor hours in a traditional costing system to assign overhead, what is the total cost of Product A? a. $6,383 b. $7,664 c. $3,416 d. $11,234 e. $8,091 f. $10,297 g. $5,622 h. None of the above ) If Border Corporation uses an activity-based costing system to assign overhead, what is the total cost of Product B? a. $11,234 b. $10,927 c. $9,222 d. $3,112 e. $5,622 f. $5,124 g. $8,091 h. None of the above

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
icon
Concept explainers
Topic Video
Question
AI - E H E
If Border Corporation uses direct labor hours in a traditional costing system to assign overhead - Saved -
AutoSave
Off
Normal
badiya aldujaili
BA
EN
File
Home
Insert
Draw
Design
Layout
References
Mailings
Review
View
Help
A Share
O Comments
X Cut
Calibri (Body) v 11
- A^ A° Aav A
E - E - E E E
O Find -
AaBbCcDc AaBbCcDc AaBbC AABBCCC AaB
A BBCCC AaBbCcDa
A Copy
Paste
S Replace
В IUvab х, х* А
I Normal
1 No Spac.. Heading 1
Heading 2
Title
Subtitle
Subtle Em..
A Select v
Dictate
Editor
Format Painter
Clipboard
Font
Paragraph
Styles
Editing
Voice
Editor
1.. |
1''' I
2
4
7
Use the following information to answer questions the next two questions:
Border Corporation identified the following activities related to annual expected overhead
costs at the beginning of 2018.
Expected
Overhead Activity
Moving Materials
Inspections
Ordering
Maintenance
Expected
Quantity
500
Expected
Cost
$ 16,000
$ 22,400
$ 13,900
$ 161,200
Expected
Activity Driver
Number of moves
Number of inspection hours
350
Number of orders
2,780
6,200
Machine hours
The company's normal activity is 5,000 direct labor hours per year.
During January 2018, the company reported the following for two of its products:
Product A
$2,575
$2,100
Product B
$2,810
$3,300
Direct materials
Direct labor
Units completed
40
50
Direct labor hours
80
120
Number of material moves
11
Number of inspection hours
Number of orders
Machine hours
50
50
20
70
90
If Border Corporation uses direct labor hours in a traditional costing system to assign overhead, what is
the total cost of Product A?
a. $6,383 b. $7,664 c. $3,416 d. $11,234 e. $8,091 f. $10,297 g. $5,622 h. None of the above
) If Border Corporation uses an activity-based costing system to assign overhead, what is the total cost of
Product B?
a. $11,234 b. $10,927 c. $9,222 d. $3,112 e. $5,622 f. $5,124 g. $8,091 h. None of the above
Page 1 of 1
81 words
English (United States)
D Focus
+
100%
4:33 PM
O Type here to search
ENG
2/17/2021
Transcribed Image Text:AI - E H E If Border Corporation uses direct labor hours in a traditional costing system to assign overhead - Saved - AutoSave Off Normal badiya aldujaili BA EN File Home Insert Draw Design Layout References Mailings Review View Help A Share O Comments X Cut Calibri (Body) v 11 - A^ A° Aav A E - E - E E E O Find - AaBbCcDc AaBbCcDc AaBbC AABBCCC AaB A BBCCC AaBbCcDa A Copy Paste S Replace В IUvab х, х* А I Normal 1 No Spac.. Heading 1 Heading 2 Title Subtitle Subtle Em.. A Select v Dictate Editor Format Painter Clipboard Font Paragraph Styles Editing Voice Editor 1.. | 1''' I 2 4 7 Use the following information to answer questions the next two questions: Border Corporation identified the following activities related to annual expected overhead costs at the beginning of 2018. Expected Overhead Activity Moving Materials Inspections Ordering Maintenance Expected Quantity 500 Expected Cost $ 16,000 $ 22,400 $ 13,900 $ 161,200 Expected Activity Driver Number of moves Number of inspection hours 350 Number of orders 2,780 6,200 Machine hours The company's normal activity is 5,000 direct labor hours per year. During January 2018, the company reported the following for two of its products: Product A $2,575 $2,100 Product B $2,810 $3,300 Direct materials Direct labor Units completed 40 50 Direct labor hours 80 120 Number of material moves 11 Number of inspection hours Number of orders Machine hours 50 50 20 70 90 If Border Corporation uses direct labor hours in a traditional costing system to assign overhead, what is the total cost of Product A? a. $6,383 b. $7,664 c. $3,416 d. $11,234 e. $8,091 f. $10,297 g. $5,622 h. None of the above ) If Border Corporation uses an activity-based costing system to assign overhead, what is the total cost of Product B? a. $11,234 b. $10,927 c. $9,222 d. $3,112 e. $5,622 f. $5,124 g. $8,091 h. None of the above Page 1 of 1 81 words English (United States) D Focus + 100% 4:33 PM O Type here to search ENG 2/17/2021
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Costing Systems
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education