Question

Exercise 4-10 (Video) (Part Level Submission) Kragan Clothing Company manufactures its own designed and labeled athletic wear

0 0
Add a comment Improve this question Transcribed image text
Answer #1
a)
Traditional product costing = 394000*70% = 275800
Activity based costing
sales commission (905000*0.05) 45250
advertising -TV (220*300) 66000
Advertising internet - (1900*10) 19000
catalogs (59800*2.50) 149500
cost of catalog sales (8750*1) 8750
credit & collection (905000*0.03) 27150
sale cost to be assigned 315650

Please give a thumbs up if it is helpful & let me know if any doubt

Add a comment
Know the answer?
Add Answer to:
Exercise 4-10 (Video) (Part Level Submission) Kragan Clothing Company manufactures its own designed and labeled athletic...
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
  • Exercise 17-10 Kragan Clothing Company manufactures its own designed and labeled athletic wear and sells its...

    Exercise 17-10 Kragan Clothing Company manufactures its own designed and labeled athletic wear and sells its products through catalog sales and retail outlets. While Kragan has for years used activity-based costing in its manufacturing activities, it has always used traditional costing in assigning its selling costs to its product lines. Selling costs have traditionally been assigned to Kragan's product lines at a rate of 70% of direct materials costs. Its direct materials costs for the month of March for Kragan's...

  • Kragan Clothing Company manufactures its own designed and labeled athletic wear and sells its products through...

    Kragan Clothing Company manufactures its own designed and labeled athletic wear and sells its products through catalog sales and retail outlets. While Kragan has for years used activity-based costing in its manufacturing activities, it has always used traditional costing in assigning its selling costs to its product lines. Selling costs have traditionally been assigned to Kragan’s product lines at a rate of 70% of direct materials costs. Its direct materials costs for the month of March for Kragan’s “high-intensity” line...

  • Kragan Clothing Company manufactures its own designed and labeled athletic wear and sells its products through...

    Kragan Clothing Company manufactures its own designed and labeled athletic wear and sells its products through catalog sales and retail outlets. While Kragan has for years used activity-based costing in its manufacturing activities, it has always used traditional costing in assigning its selling costs to its product lines. Selling costs have traditionally been assigned to Kragan's product lines at a rate of 70% of direct materials costs. Its direct materials costs for the month of March for Kragan's "high-intensity line...

  • E17.10 Assign overhead using traditional costing and ABC. (LO 1, 2, 3), AP Kragan Clothing Company...

    E17.10 Assign overhead using traditional costing and ABC. (LO 1, 2, 3), AP Kragan Clothing Company manufactures its own designed and labeled athletic wear and sells its products through catalog sales and retail outlets. While Kragan has for years used activity-based costing in its manufacturing activities, it has always used traditional costing in assigning its selling costs to its product lines. Selling costs have traditionally been assigned to Kragan's product lines at a rate of 70% of direct materials costs....

  • overhead sing onal costing and ABC 3 AP E17.10 Kragan Clothing Company manufactures its own designed...

    overhead sing onal costing and ABC 3 AP E17.10 Kragan Clothing Company manufactures its own designed and labeled athletic wear and sells its products through catalog sales and retail outlets. While Kragan has for years used activity-based costing in its manufacturing activities, it has always used traditional costing in assigning its selline costs to its product lines. Selling costs have traditionally been assigned to Kragan's product lines at a rate of 70% of direct materials costs. Its direct materials costs...

  • sed IS USU S c. Write a memorandum to the president of Air United explaining the...

    sed IS USU S c. Write a memorandum to the president of Air United explaining the benefits of activity-based costing E17.10 (LO 1. 2. 3) Kragan Clothing Company manufactures its own designed and labeled athletic wear and sells its products through catalog sales and retail outlets. While Kragan has for years used activity-based costing in its manufacturing activities, it has always used traditional costing in assigning its selling costs to its product lines. Selling costs have traditionally been assigned to...

  • Exercise 4-11 (Part Level Submission) Health 'R Us, Inc., uses a traditional product costing system to...

    Exercise 4-11 (Part Level Submission) Health 'R Us, Inc., uses a traditional product costing system to assign overhead costs uniformly to all its packaged multigrain products. To meet Food and Drug Administration requirements and to assure its customers of safe, sanitary, and nutritious food, Health 'R Us engages in a high level of quality control. Health 'R Us assigns its quality-control overhead costs to all products at a rate of 17% of direct labor costs. Its direct labor cost for...

  • Exercise 4-11 (Part Level Submission) Health 'R Us, Inc., uses a traditional product costing system to...

    Exercise 4-11 (Part Level Submission) Health 'R Us, Inc., uses a traditional product costing system to assign overhead costs uniformly to all its packaged multigrain products. To meet Food and Drug Administration requirements and to assure its customers of safe, sanitary, and nutritious food, Health 'R Us engages in a high level of quality control. Health 'R Us assigns its quality-control overhead costs to all products at a rate of 17% of direct labor costs. Its direct labor cost for...

  • Exercise 4-3 a1-a2, b1-b2 (Video) (Part Level Submission) EcoFabrics has budgeted overhead costs of $1,124,550. It...

    Exercise 4-3 a1-a2, b1-b2 (Video) (Part Level Submission) EcoFabrics has budgeted overhead costs of $1,124,550. It has allocated overhead on a plantwide basis to its two products (wool and cotton) using direct labor hours which are estimated to be 535,500 for the current year. The company has decided to experiment with activity-based costing and has created two activity cost pools and related activity cost drivers. These two cost pools are cutting (cost driver is machine hours) and design (cost driver...

  • Exercise 9-37 Activity-Based versus Traditional Costing (LO 9-4, 5, 6) Maglie Company manufactures two video game...

    Exercise 9-37 Activity-Based versus Traditional Costing (LO 9-4, 5, 6) Maglie Company manufactures two video game consoles: handheld and home. The handheld consoles are smaller and less expensive than the home consoles. The company only recently began producing the home model. Since the introduction of the new product, profits have been steadily declining. Management believes that the accounting system is not accurately allocating costs to products, particularly because sales of the new product have been increasing. Management has asked you...

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