FUND.ACCT.PRIN.
25th Edition
ISBN: 9781260247985
Author: Wild
Publisher: RENT MCG
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Chapter C, Problem 11E
1.
To determine
Concept Introduction:
Activity-based costing: Activity-based costing is one of the cost allocation methods where
The activity rates for each activity.
2.
To determine
Concept Introduction:
Activity-based costing: Activity-based costing is one of the cost allocation methods where overhead costs are allocated based on activity usage. It can be determined by using multiplying activity rate and activity usage. Activities can be classified as production, setups, design, and factory services.
The overhead costs per model.
3.
To determine
Concept Introduction:
Activity-based costing: Activity-based costing is one of the cost allocation methods where overhead costs are allocated based on activity usage. It can be determined by using multiplying activity rate and activity usage. Activities can be classified as production, setups, design, and factory services.
The product costs per unit for each model.
4.
To determine
Concept Introduction:
Activity-based costing: Activity-based costing is one of the cost allocation methods where overhead costs are allocated based on activity usage. It can be determined by using multiplying activity rate and activity usage. Activities can be classified as production, setups, design, and factory services.
The difference between the selling price and product cost for each model.
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Students have asked these similar questions
Precision Manufacturing Inc. (PMI) makes two types of industrial component parts-the EX300 and the TX500. It annually produces
69,000 units of EX300 and 13,400 units of TX500. The company's conventional cost system allocates manufacturing overhead to
products using a plantwide overhead rate and direct labor dollars as the allocation base. Additional information relating to the
company's two product lines is shown below:
EX300
$375,325
$129,000
Total
$546,875
$176,000
TX500
Direct materials
Direct labor
$171,550
$ 47,000
The company is considering implementing an activity-based costing system that distributes all of its manufacturing overhead to four
activities as shown below:
Activity
Manufacturing
Overhead
$182,600
249,900
187,070
84,460
$704,000
Activity Cost Pool
(and Activity Measure)
Machining (machine-hours)
Setups (setup hours)
Product-level (number of products)
General factory (direct labor dollars)
EX300
99,000
120
1
TX500
67,000
390
1
Total
166,000
510
2
$129,000
$47,000…
PART A
Classify each cost below as being either variable (VC) or fixed (FC) with respect to the number of
units produced or sold. Also classify each cost as either a direct material (DM), a direct labour
(DL), production overheads (OH) or a selling and administrative (SA) cost.
Magnitos Factory produces ice cream. Write your answers in the appropriate columns to show
the proper classification of each cost.
Cost
Cost
Classification
Behaviour
(VC or FC)
(DM/DL/OH/SA)
1. Depreciation of delivery van.
2. Cost of milk in making ice-cream.
3. Lubricants for machineries.
4. Wages of operatives in cooling department.
5. Insurance for factory building.
6. Rent of finished goods warehouse.
7. Electricity cost at factory.
8. Salary of receptionist at regional office.
9. Commission paid to salesman.
10. Factory manager's salary.
Classifying costs
Wheels, Inc. manufactures wheels for bicycles, tricycles, and scooters. For each cost given below, determine if the cost is a product cost or a period cost. If the cost is a product cost, further determine if the cost is direct materials (DM), direct labor (DL), or manufacturing overhead (MOH) and then determine if the product cost is a prime cost, conversion cost, or both. If the cost is a period cost, further determine if the cost is a selling expense or administrative expense (Admin). Cost (a) is answered as a guide
Chapter C Solutions
FUND.ACCT.PRIN.
Ch. C - Prob. 1QSCh. C - Computing plantwide overhead rates P1 Chan Company...Ch. C - Computing overhead rates under ABC P2 Refer to the...Ch. C - Prob. 4QSCh. C - Prob. 5QSCh. C - Prob. 6QSCh. C - Prob. 7QSCh. C - Prob. 8QSCh. C - Prob. 9QSCh. C - Prob. 10QS
Ch. C - Prob. 11QSCh. C - Prob. 1ECh. C - Prob. 2ECh. C - Prob. 3ECh. C - Prob. 4ECh. C - Prob. 5ECh. C - Exercise C-6 Activity-based costing P2 Northwest...Ch. C - Prob. 8ECh. C - Prob. 9ECh. C - Prob. 10ECh. C - Prob. 11ECh. C - Prob. 12ECh. C - Problem C-1A Applying activity-based costing P1 P2...Ch. C - Prob. 2PSACh. C - Prob. 3PSACh. C - Prob. 4PSACh. C - Prob. CSPCh. C - Prob. 1DQCh. C - Complete the following for a traditional two-stage...Ch. C - What is the difference between operating...Ch. C - What is activity-based costing? What is its goal?Ch. C - What is a cost object?
Knowledge Booster
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