SURVEY OF ACCOUNT.(LL)-W/ACCESS>CUSTOM<
5th Edition
ISBN: 9781260222326
Author: Edmonds
Publisher: MCG CUSTOM
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Chapter 12, Problem 11E
To determine
The overall cost of processing the complaints of customer in the month of January and in the month of February.
To determine
The reason for the cost allocation to the representative of customer relations will or will not be relevant towards decision making.
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Chapter 5 Activity-Based Costing and Management
Problem 5-57 Customers as a Cost Object
Morrisom National Bank has requested an analysis of checking account profitability by custom-
er type. Customers are categorized according to the size of their account: low balances, medium
balances, and high balances. The activities associated with the three different customer catego-
ries and their associated annual costs are as follows:
Opening and closing accounts
Issuing monthly statements
Processing transactions
Customer inquiries
$ 300,000
450,000
3,075,000
0000 Providing automatic teller machine (ATM) services
600,000
Total cost
1,680,000
$6,105,000
Additional data concerning the usage of the activities by the various customers are also
provided:
Account Balance
Low
Medium
High
Number of accounts opened/closed
22,500
4,500
3,000
Number of statements issued
675,000
150,000
75,000
Processing transactions
27,000,000
3,000,000
750,000
Number of telephone minutes
1,500,000
900,000
600,000
Number…
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Ch. 8 Question 7
Please solve and answer the following quesitons:
Question 7
Each visor requires a total of $4.00 in direct materials that includes an adjustable closure that the company purchases from a supplier at a cost of $1.50 each. Shadee wants to have 30 closures on hand on May 1, 20 closures on May 31, and 25 closures on June 30. Additionally, Shadee’s fixed manufacturing overhead is $1,000 per month, and variable manufacturing overhead is $1.25 per unit produced. Each visor takes 0.30 direct labor hours to produce and Shadee pays its workers $9 per hour.
Additional information: Selling costs are expected to be 6 percent of sales.Fixed administrative expenses per month total $1,200.Required:Determine Shadee's budgeted selling and administrative expenses for May and June.
Chapter 12 Solutions
SURVEY OF ACCOUNT.(LL)-W/ACCESS>CUSTOM<
Ch. 12 - 1.What is a cost object? Identify four different...Ch. 12 - Prob. 2QCh. 12 - 3.If the cost object is a manufactured product,...Ch. 12 - Prob. 4QCh. 12 - Prob. 5QCh. 12 - Prob. 6QCh. 12 - Prob. 7QCh. 12 - Prob. 8QCh. 12 - Prob. 9QCh. 12 - 10.Why are some manufacturing costs not directly...
Ch. 12 - Prob. 11QCh. 12 - 12.On January 31, the managers of Integra, Inc....Ch. 12 - 13.Respond to the following statement: The...Ch. 12 - Prob. 14QCh. 12 - Define the term cost pool. How are cost pools...Ch. 12 - LO 4-1Exercise 4-1A Direct versus indirect costs...Ch. 12 - Prob. 2ECh. 12 - Prob. 3ECh. 12 - Exercise 4-4APooling overhead cost Ware...Ch. 12 - Prob. 5ECh. 12 - Exercise 4-5A Allocating overhead cost among...Ch. 12 - Prob. 7ECh. 12 - Prob. 8ECh. 12 - Exercise 4-6AAllocating overhead costs among...Ch. 12 - Exercise 4-9AAllocating to solve a timing problem...Ch. 12 - Prob. 11ECh. 12 - Exercise 4-11AHow the allocation of fixed cost...Ch. 12 - Prob. 13ECh. 12 - Problem 4-17A Cost accumulation and allocation...Ch. 12 - Problem 4-18A Selecting an appropriate cost driver...Ch. 12 - Problem 4-19A Cost allocation in a service...Ch. 12 - Prob. 17PCh. 12 - Problem 4-21A Allocation to accomplish smoothing...Ch. 12 - Problem 4-22A Allocating indirect costs between...Ch. 12 - Prob. 20PCh. 12 - Prob. 1ATCCh. 12 - Prob. 2ATCCh. 12 - ATC 4-3 Research Assignment Using real-world data...Ch. 12 - Prob. 4ATCCh. 12 - Prob. 5ATC
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