QUESTION 1 Incomplete answerMarked out of 5.00P lag Stage 1 ABC For Machine Shop: Assigning Costs...
Stage 1 ABC For Machine Shop: Assigning Costs to Activity As the chief engineer of a small fabrication shop, Brenda Tolliver refers to herself as a "jack-of-all-trades." When an order for a new product comes in, Brenda must do the following: Design the product to meet customer requirements. Prepare a bill of materials (a list of materials required to produce the product). Prepare an operations list (a sequential list of the steps involved in manufacturing the product). Each time the...
Exercise 4-1 ABC Cost Hierarchy (L04-1] The following activities occur at Greenwich Corporation, a company that manufactures a variety of products: Required: Classify each of the activities below as either a unit-level, batch-level, product-level, or facility-level activity. Activity Classification Activity a. Various individuals manage the parts inventories. b. A clerk in the factory issues purchase orders for a job. c. The personnel department trains new production workers. d. The factory's general manager meets with other department heads to coordinate plans....
299-830c-13050501042c/question/4 lass Question 5 of 6 - / 1 Spin Cycle Architecture uses three activity pools to apply overhead to its projects. Each activity has a cost driver used to allocate the overhead costs to the projects. The activities and related overhead costs are as follows: initial concept formation $40,000; design $300,000; and construction oversight $100,000. The cost drivers and estimated use are as follows. Estimated Use of Cost Activities Cost Drivers Drivers per Activity Initial concept formation Number of...
Budgeted Cost $ 86,100 45,000 7,200 57,000 23,000 14,000 51,250 18,800 36,700 22,500 8,3ee 220,000 Name of Budgeted Cost Plant insurance Testing raw materials Manufacturing equipment setup Quality inspections Property taxes Electricity, plant Electricity, manufacturing equipment Depreciation, plant Depreciation, manufacturing equipment Maintenance worker (manufacturing equipment) Indirect labor (manufacturing equipment setup) Design engineering Required: 1. Assign each of the budgeted costs above to one of the following activity cost pools: Engineering Equipment setup Quality control • Factory facilities Manufacturing equipment 2....
1. Design costs are an example of: a) unit-level costs b) product-sustaining costs c) facility-sustaining costs d) batch-level costs 2. A manufacturing firm produces multiple families of products requiring various combinations of different types of parts. Of the following, the MOST appropriate cost driver for assigning materials handling costs to the various products is: a) number of parts used b) number of suppliers involved c) number of units produced d) direct labor hours 3. A well-designed, activity-based cost system helps...
Craft Pro Machining produces machine tools for the construction industry. The following details about overhead costs were taken from its company records. Production Activity Indirect Labor Indirect Materials Other Overhead Grinding $ 340,000 Polishing $ 110,000 Product modification 500,000 Providing power $ 265,000 System calibration 430,000 Additional information on the drivers for its production activities follows. Grinding 12,000 machine hours Polishing 12,000 machine hours Product modification 1,900 engineering hours Providing power 16,000 direct labor hours System calibration 900 batches Job...
Craft Pro Machining produces machine tools for the construction Industry. The following details about overhead costs were taken from its company records. Indirect Materials Indirect Labor $ 410,000 Other Overhead $155.000 Production Activity Grinding Polishing Product modification Providing power System calibration 650,000 $225,000 440,000 Additional Information on the drivers for its production activities follows. 1800 engineering Grinding 10,000 machine hours Polishing 10,000 machine hours Product 0 modification hours Providing power direct labor 16,000 hours System calibration 300 batches Number of...
.1. The adoption of a 24/7 customer service help line is an example of a product sustaining activity customer value added activity batch related activity business value added activity non value added activity 2. Pound industries customer service dept follows up on a customer complaint by telephone inquiry. During a recent period, the dept initiated 10,000 calls and incurred costs of 312,000. Of these calls 3,800 were for the company’s wholesale operation, the remainder was for the retail division. Costs...
Foam Products, Inc., 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 $ $ $ $ Activity Rate 14 per direct labor-hour 89 per batch 276 per order 2,610 per...
Question 1 The managerial accounting reports of a company would be of most interest and benefits to the company's: A banker B. largest stockholder C. bondholders D. vice president of manufacturing Question 2Which of the following would NOT be classified as a product cost?A. Direct materialsB. Direct laborC. Indirect materialsD. Insurance on the manufacturing plantE. Sales commissionsQuestion 3 Which of the following is NOT a broad cost classification category typically used in activity-based costing? A Unit-level B. Batch-level C. Product-sustaining level D. Facility-level...