Question

Hello, i completed some homework questions and wanted to compare. The following questions are below. Thanks

1)

Bill Cobb Corporation had the following activities, pooled costs, and physical flow of driver units. The company uses activity-based costing.

Activities Pooled
Costs Physical Flow of
Driver Units

Account inquiry (hours)	$400,000	5,000
Account billing (lines)	$280,000	2,000,000
Account verification (accounts)	$150,000	20,000
Correspondence (letters)	$50,000	2,000

The above activities are used by departments X and Y as follows:

	X	Y
Account inquiry (hours)	500 hours	800 hours
Account billing (lines)	250,000 lines	200,000 lines
Account verification (accounts)	2,000 accounts	1,000 accounts
Correspondence (letters)	200 letters	1,000 letters

How much of the account verification cost will be assigned to Department Y?

How much of the correspondence cost will be assigned to Department X?

2)

Babcock Industries uses departmental overhead rates to allocate its manufacturing overhead to jobs. The company has two departments: Assembly and Sanding. The Assembly Department uses a departmental overhead rate of $20 per machine hour, while the Sanding Department uses a departmental overhead rate of $15 per direct labour hour. Job 396 used the following direct labour hours and machine hours in the two departments:

Actual results	Assembly Department	Sanding Department
Direct labour hours used	4	3
Machine hours used	9	5

The cost for direct labour is $25 per direct labour hour and the cost of the direct materials used by Job 396 is $1,200.
What was the total cost of Job 396 if Babcock Industries used the departmental overhead rates to allocate manufacturing overhead?

3)

Wallace Printing has contracts to complete weekly supplements required by forty-six customers. For the year 2016, manufacturing overhead cost estimates total $420,000 for an annual production capacity of 10 million pages.

For 2016 Wallace Printing decided to evaluate the use of additional cost pools. After analyzing manufacturing overhead costs, it was determined that number of design changes, setups, and inspections are the primary manufacturing overhead cost drivers. The following information was gathered during the analysis:

Cost pool	Manufacturing overhead costs	Activity level
Design changes	$60,000	200 design changes
Setups	320,000	4,000 setups
Inspections	40,000	16,000 inspections
Total manufacturing overhead costs	$420,000

During 2016, two customers, Wayward Insurance and Hapless Systems, are expected to use the following printing services:

Activity	Wayward Insurance	Hapless Systems
Pages	60,000	76,000
Design changes	10	2
Setups	20	10
Inspections	30	38

Using activity-based costing to allocate overhead costs, what is the total manufacturing overhead cost estimate for Hapless Systems during 2016?

Answer 1

1
Account verification cost assigned to Department Y	7500	=150000/20000*1000
Correspondence cost assigned to Department X	5000	=50000/2000*200
2
	Job 396
Direct material cost	1200
Direct labour cost	175	=25*(4+3)
Overhead allocated:
Assembly Department	180	=20*9
Sanding Department	45	=15*3
Total cost of Job 396	1600
3
	Hapless Systems
Design changes	600	=60000/200*2
Setups	800	=320000/4000*10
Inspections	95	=40000/16000*38
Total manufacturing overhead cost for Hapless Systems	1495