MANAGERIAL ACCOUNTING FOR MANAGERS
5th Edition
ISBN: 9781264196456
Author: Noreen
Publisher: MCG
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Chapter 5A, Problem 5A.5P
1.
To determine
Introduction:
To compute: The cot per hour of the resource supplied in engineering department, time driven activity rate for all three activities, and the total labor cost consumed by customer A, B and C.
2.
To determine
Introduction: Job costing is a technique of determine the cost of a manufacturing job rather than the process of the job. Manufacturing overhead is applied to product or job order is determined as predetermined overhead.
To compute: The used capacity in hour, unused capacity in hour, unused capacity in number of employees, impact on expenses of matching capacity with demand.
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TB MC Qu. 7-52 (Algo) Eccles Corporation uses an activity-based costing...
Eccles Corporation uses an activity-based costing system with three activity cost pools. The company has provided the following data
concerning its costs and its activity based costing system:
Costs:
Wages and salaries
Depreciation
Utilities
$ 318,000
247,000
206,000
$ 771,000
Total
Distribution of resource consumption:
Activity Cost Pools
Setting Up
Assembly
Other
Total
Wages and salaries
Depreciation
Utilities
30%
10%
45%
25%
100%
30%
20%
60%
100%
50%
30%
100%
How much cost, in total, would be allocated in the first-stage allocation to the Assembly activity cost pool?
Multiple Choice,
hp
Solve the questions answer of number 3 & 4
Please give working notes and proper explanation of solution
Chapter 5A Solutions
MANAGERIAL ACCOUNTING FOR MANAGERS
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- 1arrow_forwardRequired information [The following information applies to the questions displayed below.] Adria Company recently implemented an activity-based costing system. At the beginning of the year, management made the following estimates of cost and activity in the company's five activity cost pools: Expected Activity Overhead Expected Activity 6,500 DLHS 2,400 orders 700 receipts 1,400 relays 41,000 MHs Activity Cost Pool Labor-related Purchase orders Measure Cost $ 58,500 $ 12,000 $ 11, 200 $ 14,000 $369, 000 Direct labor-hours Material receipts Relay assembly General factory Number of orders Number of receipts Number of relays Machine-hours Required: 1. Compute the activity rate for each of the activity cost pools. Activity Cost Pool Activity Rate Labor-related per DLH Purchase orders per order Material receipts per receipt Relay assembly per relay General factory per MHarrow_forwardSolve this problemarrow_forward
- topic : Process Costing PLS HELP ME ANSWER THE REQUIRED ANSWERS!arrow_forwardProblem 2 Milky Corporation has provided the following data from its activity-based costing accounting system: Activity Cost Pools Designing products Setting up batches Assembling products Total Cost P1,372,448 P33,300 P126,160 Total Activity 7,798 product design hours 740 batch set-ups 6,640 assembly hours The activity rate for the "designing products" activity cost pool is answer must be in nearest peso A The activity rate for the "setting up batches" activity cost pool is answer should be in nearest peso A The activity rate for the "assembling products" activity cost pool is answer must be in nearest peso Aarrow_forwardRequired information Dierich Company uses an activity-based costing system with three activity cost pools. The company has provided the following data concerning its costs and its activity-based costing system: Costs: Manufacturing overhead Selling and administrative expenses Total Distribution of Resource Consumption: Manufacturing overhead Selling and administrative expenses Order Size 15% 60% Activity Cost Pools Other Customer Support 75% 20% 10% 20% $600,000 220.000 $820,000 Total 100% 100% D The "Other" activity cost pool consists of the costs of idle capacity and organization-sustaining costs. You have been asked to complete the first-stage allocation of costs to the activity cost pools.arrow_forward
- Required information Dideda Company uses an activity-based costing system with three activity cost pools. The company has provided the following data concerning its costs and its activity-based costing system: Costs: Manufacturing overhead Selling and administrative expenses Total Distribution of Resource Consumption: Manufacturing overhead Selling and administrative expenses Order Size 25% 60% Activity Cost Pools Customer Support 50% 30% Other 25% 10% $340,000 250,000 $590,000 Total 100% 100% The "Other activity cost pool consists of the costs of idle capacity and organization-sustaining costs. You have been asked to complete the first-stage allocation of costs to the activity cost pools.arrow_forwardprovide correct solutionarrow_forwardRequired information Davis Company uses an activity-based costing system in which there are three activity cost pools. The company has provided the following data concerning its costs and its activity-based costing system: Costs: Manufacturing overhead Selling and administrative expenses Total Distribution of Resource Consumption: Manufacturing overhead Selling and administrative expenses Order Size Multiple Choice $180.000 35% 50% $255.000 Activity Cost Pools Customer Other Support 55% 30% 10% 20% $400,000 200,000 $600,000 Total The "Other activity cost pool consists of the costs of idle capacity and organization-sustaining costs. You have been asked to complete the first-stage allocation of the costs to the activity cost pools 100% How much cost, in total, would be allocated in the first-stage allocation to the Customer Support activity cost pool? 100%arrow_forward
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