Question
computactivity based costing system

How Does l Relate to Li The leton Central MyCarleton Email You are logged in as Charles The following data regarding the activity-based costing system at the Herman Company is available: Activity Pool Machine set up Orders Shipping Base # of setups # of orders Hours Activity 344 131 269 Budgeted Cost $1502 1267 1469 8 Herman completed a total of 10 jobs during the period, of which the last job just completed for a custome 2 setups, 3 orders, and 2.8 hour of shipping time. How much cost will be assigned to the job by the activi costing system? Select one: a. $53 b. $4238 c. $424 d. $191
0 0
Add a comment Improve this question Transcribed image text
Answer #1

Correct answer---a. $53

Calculation of Activity rates

Activity Cost Pool

Activity driver

Overhead Cost

Expected Activity (B)

Activity rate (A/B)

Machine setup

Number of Setups

$ 1,502.00

344

$              4.37

Per Setups

Orders

Number of orders

$ 1,267.00

131

$              9.67

Per orders

Shipping

Number of hours

$ 1,469.00

269

$              5.46

Per hours

Cost assigned

Activity name

Activity Rates

Activity

ABC Cost

(A)

(B)

(A x B)

Machine setup

$                  4.37

2

$                      8.73

Orders

$                  9.67

3

$                   29.02

Shipping

$                  5.46

3

$                   15.29

Total Overheads assigned

$                   53.04

Add a comment
Know the answer?
Add Answer to:
computactivity based costing system How Does l Relate to Li The leton Central MyCarleton Email You...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • The following data regarding the activity-based costing system at the Herman Company is available Activity Pool...

    The following data regarding the activity-based costing system at the Herman Company is available Activity Pool Machine set up Orders Shipping Budgeted Activity 304 144 204 Budgeted Cost S1216 1243 1444 ase # of setups # of orders Hours Herman completed a total of 10 jobs during the period, of which the last job just completed for a customer required 2 setups, 6 orders, and 2.6 hour of shipping time. How much cost will be assigned to the job by...

  • The following data regarding the activity-based costing system at the Company Co. is available: Base Activity...

    The following data regarding the activity-based costing system at the Company Co. is available: Base Activity Pool Machine set Budgeted Activity 2839 Budgeted Cost $23322 of setups up Orders Shipping # of orders Hours of shipping time 968 2121 $88985 $40914 In addition, prior to adopting an activity based costing system. Company Co, applied Overhead based on direct labour hours. The budgeted total labour hours for the year was 46474 If one job required 400 direct labour hours, 42 setups,...

  • The following data regarding the activity-based costing system at the Company Co. is available: Activity Pool...

    The following data regarding the activity-based costing system at the Company Co. is available: Activity Pool Base Budgeted Activity Budgeted Cost Machine set up # of setups 2867 $26651 Orders # of orders 924 $80603 Shipping Hours of shipping time 2081 $40657 In addition, prior to adopting an activity based costing system, Company Co. applied overhead based on direct labour hours. The budgeted total labour hours for the year was 50450. If one job required 427 direct labour hours, 41...

  • Lupo Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on...

    Lupo Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on the following data: Total machine-hours 30,000 Total fixed manufacturing overhead cost $ 252,000 Variable manufacturing overhead per machine-hour $ 2.10 Recently, Job T687 was completed with the following characteristics: Number of units in the job 10 Total machine-hours 30 Direct materials $ 675 Direct labor cost $ 1,050 The estimated total...

  • Plaid Manufacturing Co. produces two products: G1 and M1. The company uses an activity based costing...

    Plaid Manufacturing Co. produces two products: G1 and M1. The company uses an activity based costing system. The following are the activities, budgeted total cost and cost drivers per activity for the year 20x9: Activity Budgeted Cost Cost Base Cost Base Volume Assembly $864585 # of DL hours 36772 Inspection $664181 # of units 20927 Shipping $349574 # of batches 189 Plaid Manufacturing has budgeted to produce 3,000 units of G1. G1 is manufactured in batches of 73 units and...

  • How would you answer this? Calculator Heitger Company is a job-order costing firm that uses activity-based...

    How would you answer this? Calculator Heitger Company is a job-order costing firm that uses activity-based costing to apply overhead to jobs. Heitger identified three overhead activities and related drivers. Budgeted information for the year is as follows: Activity Cost Driver Amount of Driver Materials handling $ 72,000 Number of moves 3,000 Engineering Number of change orders 10,000 165,000 280,000 Other overhead Direct labor hours 50,000 Heitger worked on four jobs in July. Data are as follows: Job 13-43 Job...

  • cách). 1. Activity-based costing differs from a traditional costing system in all of the following aspects...

    cách). 1. Activity-based costing differs from a traditional costing system in all of the following aspects EXEPT: A) Direct materials, direct labor, and shipping costs are directly assigned to cost objects. B) Numerous overhead cost pools are used in ABC system. C) Most but not all manufacturing costs are assigned to products. D) Non-manufacturing as well as manufacturing costs may be assigned to products. 2. In activity-based costing, the activity rate for an activity cost pool is computed by dividing...

  • foi gou might imagin he ABcd Tank Maufactring Cony uses an activiny-based costing system. ABC has...

    foi gou might imagin he ABcd Tank Maufactring Cony uses an activiny-based costing system. ABC has given you the Overhead Costs Wages and salaries Other overhead costs $360,000 195,000 Total overhead costs $555,000 Activity Cost Pool Direct labor support Number of direct labor-hours Order processingNumber of orders Customer support Number of customers Other 11,500 DLHS 580 orders 95 customers This is an organization-sustaining activity Not applicable Distribution of Resource Consumption Across Activities Direct Labor Order Customer Support Processing Support Other...

  • Activity-Based Costing, Unit Cost, Ending Work-in-Process Inventory, Journal Entries Feldspar Company uses an ABC system to...

    Activity-Based Costing, Unit Cost, Ending Work-in-Process Inventory, Journal Entries Feldspar Company uses an ABC system to apply overhead. There are three activity rates: Setting up $20 per setup Machining $5.10 per machine hour Other overhead 75% of direct labor cost During September, Feldspar worked on three jobs. Data relating to these jobs follow: Job 13-280 Job 13-281 Job 13-282 Units in each order 200 520 120 Units sold 200 120 Materials requisitioned $4,720 $3,700 $5,600 Direct labor cost $2,000 $4,700...

  • Activity-Based Costing, Unit Cost, Ending Work-in-Process Inventory, Journal Entries Feldspar Company uses an ABC system to...

    Activity-Based Costing, Unit Cost, Ending Work-in-Process Inventory, Journal Entries Feldspar Company uses an ABC system to apply overhead. There are three activity rates: Setting up $20 per setup Machining $5.20 per machine hour Other overhead 70% of direct labor cost During September, Feldspar worked on three jobs. Data relating to these jobs follow: Job 13-280 Job 13-281 Job 13-282 Units in each order 200 500 100 Units sold 200 — 100 Materials requisitioned $4,720 $3,700 $5,800 Direct labor cost $2,000...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT