Question

QUESTION:

18 79 c. Determine the operating costs assigned to each machine when 80 activity-based costing is used. Routine Machine Trips Machine lease, space rent, and utilities Maintenance Total OOO OWN- Total

DATA FOR QUESTION:

Answer 1

Machine	Routine Trips		Maintenance		Machine lease,space rent and utilities	Total
	No. of Routine Trips	Total Cost	No. of Maint. Hours	Total Cost	($1700 for each machine)
1	30	$450	5	$350	$1,700	$2,500
2	90	$1,350	17	$1,190	$1,700	$4,240
3	60	$900	15	$1,050	$1,700	$3,650
4	60	$900	30	$2,100	$1,700	$4,700
5	120	$1,800	15	$1,050	$1,700	$4,550
6	30	$450	10	$700	$1,700	$2,850
7	90	$1,350	25	$1,750	$1,700	$4,800
8	120	$1,800	5	$350	$1,700	$3,850
9	60	$900	20	$1,400	$1,700	$4,000
10	50	$750	18	$1,260	$1,700	$3,710
Total	710	$10,650	160	$11,200	$17,000	$38,850

Allocation of Operating costs to each activities
Operating Costs	Routine Trips	Maintenance	Machine lease,space rent and utilities	Total
Supervisor Salary	$2,982	$1,988	$0	$4,970
Head Cashier Salary	$3,150	$1,050	$0	$4,200
Associate Cashiers salary	$1,800	$1,800	$0	$3,600
Maintenance workers salary	$0	$3,600	$0	$3,600
Cashiers' service vehicle used for routine trips	$1,500	$0	$0	$1,500
Maintenence service vehicle used for maintenance activities	$0	$1,544	$0	$1,544
Office Rent and utilities	$1,218	$1,218	$0	$2,436
Machine lease, space rent and utilities	$0	$0	$17,000	$17,000
Total	$10,650	$11,200	$17,000	$38,850
Total No. of activities per month	710	160
Activity Cost/Activity	$15	$70