XYZ, Incorporated, makes foam seat cushions for the automotive and aerospace industries. The company's activity-based costing system has four activity cost pools, which are listed below along with their activity measures and activity rates: Activity Cost Pool Supporting direct labor Batch processing Order processing Customer service Activity Measure Number of direct labor-hours Number of batches. Number of orders Number of customers The company just completed a single order from I Truck for 1,600 custom seat cushions. The order was produced in three batches. Each seat cushion required 0.3 direct labor-hours. The selling price was $141.80 per unit, the direct materials cost was $106 per unit, and the direct labor cost was $13.90 per unit. This was I Truck's only order during the year. Required: Calculate the customer margin on sales to I Truck for the year. Costs: Interstate Trucking Customer Margin-ABC Analysis Customer margin Activity Rate $10 per direct labor-hour $ 92 per batch $ 280 per order $ 2,609 per customer

XYZ, Incorporated, makes foam seat cushions for the automotive and aerospace industries. The company's activity-based costing system has four activity cost pools, which are listed below along with their activity measures and activity rates: Activity Cost Pool Supporting direct labor Batch processing Order processing Customer service Activity Measure Number of direct labor-hours Number of batches. Number of orders Number of customers The company just completed a single order from I Truck for 1,600 custom seat cushions. The order was produced in three batches. Each seat cushion required 0.3 direct labor-hours. The selling price was $141.80 per unit, the direct materials cost was $106 per unit, and the direct labor cost was $13.90 per unit. This was I Truck's only order during the year. Required: Calculate the customer margin on sales to I Truck for the year. Costs: Interstate Trucking Customer Margin-ABC Analysis Customer margin Activity Rate $10 per direct labor-hour $ 92 per batch $ 280 per order $ 2,609 per customer

Name: XYZ, Incorporated, makes foam seat cushions for the automotive and ae
Uploaded: 2024-03-20T06:33:06.000Z
Channel: Bartleby
Description: XYZ, Incorporated, makes foam seat cushions for the automotive and aerospace industries. The company's activity-based costingsystem has four activity cost pools, which are listed below along with their activity measures and activity rates:Activity C

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Brannon Company manufactures ceiling fans and uses an activity-based costing system. Each ceiling fan consists of 20 separate parts totaling $95 in direct materials, and requires 2.5 hours of machine time to produce. Additional information follows: Cost Pool Allocation Base Overhead Rate Materials handling Number of parts $.08 Machining Machine hours $7.20 Assembling Number of parts $.35 Packaging Number of finished units $2.70 What is the cost of machining per ceiling fan? Brannon Company manufactures ceiling fans and uses an activity-based costing system. Each ceiling fan consists of 20 separate parts totaling $95 in direct materials, and requires 2.5 hours of machine time to produce. Additional information follows: Cost Pool Allocation Base Overhead Rate Materials handling Number of parts $.08 Machining Machine hours $7.20 Assembling Number of parts $.35 Packaging Number of finished units $2.70 What is the cost of machining per ceiling fan? $144.00 $18.00 $180.00 $30.00
Vishnu
Hardev
Teach Gear Inc. produces 3 types of office equipment; Bronze, silver and Gold and uses an activity-based product costing system. They have identified 5 activities. Each activity, it costs and related activity driver is summarized below: Activity Material handling Material insertion Activity Units to be produced Orders to be shipped Number of parts per unit Machine hours per unit Labor hours per unit Cost Tasks: Automated Machinery finishing Packaging The following data are provided for each product line: Activity driver Number of parts Number of parts 350,000 Machine hours 150,000 Labor hours 90,000 Orders shipped Bronze P120,000 240,000 6,000 1,200 4. 1 2 Silver 4,000 800 5 2 3 Gold 2,000 400 8 3 لنا Make a narrative recommend the unit cost per unit of Bronze, Silver and Gold using the ABC system. In support of your recommendation show your solution presenting: 1. The computation of the activity cost rates 2. the computation of the estimated volume (TOTAL PARTS, TOTAL MACHINE HOURS,…
None
Roll Board Inc. manufactures several models of high-quality skateboards. The company’s ABC system has four activity cost pools, which are listed below along with their activity measures and activity rates: Activity Cost Pool Activity Measure Activity Rate Supporting direct labour Number of direct labour-hours $ 4 per direct labour-hour Batch processing Number of batches $ 37 per batch Order processing Number of orders $ 83 per order Customer service Number of customers $ 52 per customer The company just completed a single order from SkateCo for 1,650 entry-level skateboards. The order was produced in 31 batches. Each skateboard required 0.6 direct labour-hours. The selling price was $125 per skateboard, the direct materials cost was $69.40 per skateboard, and the direct labour cost was $18.30 per direct labour-hour. This was the only order from SkateCo for the year. Required: Prepare a report showing the customer margin on sales to SkateCo for the year.
ces Foam Products, Incorporated, makes foam seat cushions for the automotive and aerospace industries. The company's activity-based costing system has four activity cost pools, which are listed below along with their activity measures and activity rates: Activity Cost Pool Supporting direct labor Batch processing Order processing Customer service Activity Measure Number of direct labor-hours Number of batches Number of orders Number of customers The company just completed a single order from Interstate Trucking for 2,300 custom seat cushions. The order was produced in three batches. Each seat cushion required 0.6 direct labor-hours. The selling price was $142.40 per unit, the direct materials cost was $110 per unit, and the direct labor cost was $14.30 per unit. This was Interstate Trucking's only order during the year. Costs: Required: Calculate the customer margin on sales to Interstate Trucking for the year. Activity Rate $ 14 per direct labor-hour $ 86 per batch $ 287 per order $…
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???
Denger
Xie Company identified the following activities, costs, and activity drivers for this year. The company manufactures two types of go- karts: Deluxe and Basic. Activity Handling materials Inspecting product Processing purchase orders Paying suppliers Insuring the factory. Designing packaging Activity Required: Compute the activity rate for each activity, assuming the company uses activity-based costing. (Round activity rate answers to 2 decimal places.) Handling material Inspecting product Processing orders Paying suppliers Insuring factory Designing packaging Expected Costs $700,000 975,000 180,000 250,000 375,000 150,000 Expected Costs $ $ Expected Activity 100,000 parts 1,500 batches 700 orders 500 invoices 40,000 square feet 2 models. 700,000 975,000 180,000 250,000 375,000 150,000 2,630,000 Activity Driver 100,000 parts 1,500 batches 700 orders 500 invoices 40,000 square feet 2 models Activity Rate