Using the following information, determine the overhead rates and the actual cost assigned for each of the activity cost pools in a possible ABC system for Waterways. (Round answers to 2 decimal places, eg. 12.25) WATERWAYS CORPORATION Estimated Use of Cost Activity Cost Pools Use of Cost Drivers Estimated Drivers per Activity Cost Drivers Overhead Irrigation installation Labor cost $2,094,400 12,320 12,304 Machining (all machine use) Machine hours 1,560,100 31,202,000 31,203,000 Customer orders Number of orders 33,480 2,790 2,759 Shipping none (direct) N/A N/A traced directly Design Cost per design 752 Selling Number of sales calls 306,000 20,400 20.620 WATERWAYS CORPORATION Activity- Based Actual Cost Activity Cost Pools Overhead Rates Assigned Irrigation installation Machining (all machine use) Customer orders Design Selling

Using the following information, determine the overhead rates and the actual cost assigned for each of the activity cost pools in a possible ABC system for Waterways. (Round answers to 2 decimal places, eg. 12.25) WATERWAYS CORPORATION Estimated Use of Cost Activity Cost Pools Use of Cost Drivers Estimated Drivers per Activity Cost Drivers Overhead Irrigation installation Labor cost $2,094,400 12,320 12,304 Machining (all machine use) Machine hours 1,560,100 31,202,000 31,203,000 Customer orders Number of orders 33,480 2,790 2,759 Shipping none (direct) N/A N/A traced directly Design Cost per design 752 Selling Number of sales calls 306,000 20,400 20.620 WATERWAYS CORPORATION Activity- Based Actual Cost Activity Cost Pools Overhead Rates Assigned Irrigation installation Machining (all machine use) Customer orders Design Selling

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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uired intor Use the following information for the Exercises below. (Algo) [The following information applies to the questions displayed below.] Felix & Company reports the following information. Units Produced Total Costs $ 2,515 3,235 3,955 4,675 5,395 6,115 6,835 7,555 8,275 8,995 Period 1 2 400 800 1,200 1,600 2,000 2,400 2,800 3,200 3,600 4 6. 7 10 Exercise 18-5 (Algo) Measuring costs using high-low method LO P1 (1) Use the high-low method to estimate the fixed and variable components of total costs. (2) Estimate total costs if 3,000 units are produced. High-Low method - Calculation of variable cost per unit High-Low method - Calculation of fixed costs Total cost at the high point Variable costs at the high point Volume at the high point Variable cost per unit Total variable costs at the high point Total fixed costs Total cost at the low point Variable costs at the low point Volume at the low point Variable cost per unit Total variable costs at the low point Total fixed costs (2)…
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1. Determine the total estimated overhead cost for each of the producing departments after allocating the cost of the service department. A. Using employee headcount as the allocation base. B. Using occupied space as the allocation base. C. Using productive capacity as the allocation base. D. Using the 3-year average use as the allocation base.
Compute the cost that is assigned to the car wheels and truck wheels product lines using an activity-based costing system, given the following information. Use of Cost Drivers per Product Number of setups Direct labor hours Number of inspections Setting up machines Assembling Inspection Total cost assigned LA LA $ +A Car 200 39,000 100 Truck 800 33,000 1,100 Car Wheels ta $ tA $ Truck Wheels
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Compute the cost that is assigned to the car wheels and truck wheels product lines using an activity-based costing system, given the following information. Use of Cost Drivers per Product Car Truck Number of setups 200 800 Direct labor hours 43,000 45,000 Number of inspections 100 1,100 Car Wheels Setting up machines SA $ Assembling $ Truck Wheels $ $ SA Inspection $ SA $ Total cost assigned $ SA $ SUPPORT
Carlise has identified the following information about its overhead activity pools and the two product lines: Activity Pools Materials handling Quality control Machine maintenance Cost Driver Number of moves Number of inspections Number of machine hours Cost Assigned to Pool Indoor Model $ 20,910 $ 85,120 $ 34,790 Materials Handling Quality Control Machine Maintenance Total Overhead Assigned Quantity or Amount Consumed by Quantity or Amount Consumed by Indoor Line Outdoor Line Required: 1. Suppose Carlise used a traditional costing system with machine hours as the cost driver. Determine the amount of overhead assigned to each product line. Complete this question by entering your answers in the tabs below. 2. Calculate the activity proportions for each activity pool in Carlise's ABC system. 3. Calculate the amount of overhead that Carlise will assign to the Indoor line if it uses an ABC system. 4. Determine the amount of overhead Carlise will assign to the Outdoor line if it uses an ABC…
Rex Industries has identified three different activities as cost drivers: machine setups, machine hours, and inspections. The overhead and estimated usage are: Compute the overhead rate for each activity. Round your answers to two decimal places. Overhead Overhead Annual Rate per Activity per Activity Usage Activity Machine Setups $157,850 4,100 $ Machine Hours 324,622 14,114 2$ Inspections 119,000 3,400
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Required information Use the following information for the Exercises below. (Algo) [The following information applies to the questions displayed below.] Felix & Company reports the following information. Period Units Produced Total Costs 1 0 $ 2,900 2 460 3,774 3 860 4,534 4 1,260 5,294 5 1,660 6,054 6 2,060 6,814 7 2,460 7,574 8 2,860 8,334 9 3,260 9,094 10 3,660 9,854 Exercise 21-6A (Algo) Appendix: Measuring costs using regression LO P1 Use spreadsheet software to use ordinary least-squares regression to estimate the cost equation, including fixed and variable cost amounts. Cost equation = + per unit
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Meester Corporation has an activity-based costing system with three activity cost pools--Machining, Order Filling, and Other. In the first stage allocations, costs in the two overhead accounts, equipment depreciation and supervisory expense, are alloceted to three activity cost pools based on resource consumption, Data used in the first stage allocations follow Overhead costs: Equipment depreciation Supervisory expense $ 81,300 $ 2,200 Distribution of Resource Consumption Across Activity Cost Pools: Activity Cost Pools Machining Order Filling Other Equipment depreciation Supervisory expense 0.50 0.30 0. 20 e. 30 e.50 0.20 Mechining costs are assigned to products using machine-hours (MHs) and Order Filing costs are essigned to products using the number of orders. The costs in the Other activity cost pool are not assigned to products. Activity date for the companve o nroducts follaw You ae sren sharg Skop Share Activity MHs (Machining) Orders (Order Filling) Product Me 1,630 9,780 1,370…