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
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
Chapter1: Financial Statements And Business Decisions
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Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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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
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