(a) Introduction: ABC system was developed to deal with the loopholes of traditional costing system. It helps in finding the total cost of activities that are necessary to make a product. In this method the costs are assigned to each activity that goes into production. To compute: The activity rates for each Cost pool assumingABC system is used by S.

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Answer 1

Question

Chapter 4, Problem 10E

To determine

(a)

Introduction:

ABC system was developed to deal with the loopholes of traditional costing system. It helps in finding the total cost of activities that are necessary to make a product. In this method the costs are assigned to each activity that goes into production.

To compute:

The activity rates for each Cost pool assumingABC system is used by S.

To determine

(b)

Introduction:

The overhead cost is the indirect cost or the cost which is not directly related to manufacturing a product. It is the cost incurred to support the making and selling of product or service. Ex. Insurance, rent etc.

To compute:

The amount of overhead that S will assign to the Standard floor mat line.

To determine

(c)

Introduction:

The overhead cost is the indirect cost or the cost which is not directly related to manufacturing a product. It is the cost incurred to support the making and selling of product or service. Examples are, insurance, rent, etc.

To compute:

To determine the amount of overhead that S will assign to the deluxe product line.

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Answer 2

Question

Chapter 4, Problem 10E

To determine

(a)

Introduction:

ABC system was developed to deal with the loopholes of traditional costing system. It helps in finding the total cost of activities that are necessary to make a product. In this method the costs are assigned to each activity that goes into production.

To compute:

The activity rates for each Cost pool assumingABC system is used by S.

To determine

(b)

Introduction:

The overhead cost is the indirect cost or the cost which is not directly related to manufacturing a product. It is the cost incurred to support the making and selling of product or service. Ex. Insurance, rent etc.

To compute:

The amount of overhead that S will assign to the Standard floor mat line.

To determine

(c)

Introduction:

The overhead cost is the indirect cost or the cost which is not directly related to manufacturing a product. It is the cost incurred to support the making and selling of product or service. Examples are, insurance, rent, etc.

To compute:

To determine the amount of overhead that S will assign to the deluxe product line.

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Answer 3

Question

Chapter 4, Problem 10E

To determine

(a)

Introduction:

ABC system was developed to deal with the loopholes of traditional costing system. It helps in finding the total cost of activities that are necessary to make a product. In this method the costs are assigned to each activity that goes into production.

To compute:

The activity rates for each Cost pool assumingABC system is used by S.

To determine

(b)

Introduction:

The overhead cost is the indirect cost or the cost which is not directly related to manufacturing a product. It is the cost incurred to support the making and selling of product or service. Ex. Insurance, rent etc.

To compute:

The amount of overhead that S will assign to the Standard floor mat line.

To determine

(c)

Introduction:

The overhead cost is the indirect cost or the cost which is not directly related to manufacturing a product. It is the cost incurred to support the making and selling of product or service. Examples are, insurance, rent, etc.

To compute:

To determine the amount of overhead that S will assign to the deluxe product line.

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Answer 4

Question

Chapter 4, Problem 10E

To determine

(a)

Introduction:

ABC system was developed to deal with the loopholes of traditional costing system. It helps in finding the total cost of activities that are necessary to make a product. In this method the costs are assigned to each activity that goes into production.

To compute:

The activity rates for each Cost pool assumingABC system is used by S.

To determine

(b)

Introduction:

The overhead cost is the indirect cost or the cost which is not directly related to manufacturing a product. It is the cost incurred to support the making and selling of product or service. Ex. Insurance, rent etc.

To compute:

The amount of overhead that S will assign to the Standard floor mat line.

To determine

(c)

Introduction:

The overhead cost is the indirect cost or the cost which is not directly related to manufacturing a product. It is the cost incurred to support the making and selling of product or service. Examples are, insurance, rent, etc.

To compute:

To determine the amount of overhead that S will assign to the deluxe product line.

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Answer 5

Chapter 4, Problem 10E

To determine

(a)

Introduction:

ABC system was developed to deal with the loopholes of traditional costing system. It helps in finding the total cost of activities that are necessary to make a product. In this method the costs are assigned to each activity that goes into production.

To compute:

The activity rates for each Cost pool assumingABC system is used by S.

To determine

(b)

Introduction:

The overhead cost is the indirect cost or the cost which is not directly related to manufacturing a product. It is the cost incurred to support the making and selling of product or service. Ex. Insurance, rent etc.

To compute:

The amount of overhead that S will assign to the Standard floor mat line.

To determine

(c)

Introduction:

The overhead cost is the indirect cost or the cost which is not directly related to manufacturing a product. It is the cost incurred to support the making and selling of product or service. Examples are, insurance, rent, etc.

To compute:

To determine the amount of overhead that S will assign to the deluxe product line.

Answer 6

Chapter 4, Problem 10E

To determine

(a)

Introduction:

ABC system was developed to deal with the loopholes of traditional costing system. It helps in finding the total cost of activities that are necessary to make a product. In this method the costs are assigned to each activity that goes into production.

To compute:

The activity rates for each Cost pool assumingABC system is used by S.

Answer 7

Chapter 4, Problem 10E

To determine

(a)

Introduction:

ABC system was developed to deal with the loopholes of traditional costing system. It helps in finding the total cost of activities that are necessary to make a product. In this method the costs are assigned to each activity that goes into production.

To compute:

The activity rates for each Cost pool assumingABC system is used by S.

Answer 8

To determine

(b)

Introduction:

The overhead cost is the indirect cost or the cost which is not directly related to manufacturing a product. It is the cost incurred to support the making and selling of product or service. Ex. Insurance, rent etc.

To compute:

The amount of overhead that S will assign to the Standard floor mat line.

Answer 9

To determine

(b)

Introduction:

The overhead cost is the indirect cost or the cost which is not directly related to manufacturing a product. It is the cost incurred to support the making and selling of product or service. Ex. Insurance, rent etc.

To compute:

The amount of overhead that S will assign to the Standard floor mat line.

Answer 10

To determine

(c)

Introduction:

The overhead cost is the indirect cost or the cost which is not directly related to manufacturing a product. It is the cost incurred to support the making and selling of product or service. Examples are, insurance, rent, etc.

To compute:

To determine the amount of overhead that S will assign to the deluxe product line.

Answer 11

To determine

(c)

Introduction:

The overhead cost is the indirect cost or the cost which is not directly related to manufacturing a product. It is the cost incurred to support the making and selling of product or service. Examples are, insurance, rent, etc.

To compute:

To determine the amount of overhead that S will assign to the deluxe product line.

Answer 12

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Answer 13

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Answer 14

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Answer 15

Ch. 4 - What is the difference between a volume-based cost...Ch. 4 - Explain the statement that traditional costing...Ch. 4 - Prob. 3Q Ch. 4 - How does activity-based costing differ from...Ch. 4 - What types of business might use activity-based...Ch. 4 - Prob. 6Q Ch. 4 - Prob. 7Q Ch. 4 - Prob. 8Q Ch. 4 - Why must costs be classified into different...Ch. 4 - Prob. 10Q

Solution Summary: The author explains the ABC system, which helps in finding the total cost of activities that are necessary to make a product.

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