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 of athletic wear are $395,000. The company has decided to extend activity-based costing to its selling costs. Data relating to the “high-intensity” line of products for the month of March are as follows.
Homework Answers
| Overhead Rate | Qty of Cost Driver | Allocated Overhead | |
| Sales Commission | 0.05 | 936000 | 46800 |
| Advertising -TV | 300 | 290 | 87000 |
| Advertising -Internet | 10 | 2100 | 21000 |
| Catalogs | 2.5 | 59800 | 149500 |
| Cost of Catalog Sales | 1 | 9250 | 9250 |
| Credit and Collection | 0.03 | 93600 | 2808 |
| Total alloctaed Selling Cost | 316358 | ||
| Direct Material Cost ($) | 395000 |
| 70% of Material Cost | 276500 |
| Traditional Product Costing | Activity Based Costing | |
| Selling Cost Assigned | 276500 | 316358 |
The traditional product costing undercost the product the 'high intensity' product line by $ 39,858 (316358 - 276500)
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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...
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...
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...
Exercise 4-10 (Video) (Part Level Submission) Kragan Clothing Company manufactures its own designed and labeled athletic...
Exercise 4-10 (Video) (Part Level Submission) 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...
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...
Ayala Inc. has conducted the following analysis related to its product lines, using a traditional costing...
Ayala Inc. has conducted the following analysis related to its
product lines, using a traditional costing system (volume-based)
and an activity-based costing system. Both the traditional and the
activity-based costing systems include direct materials and direct
labor costs.
Total Costs
Products
Sales Revenue
Traditional
ABC
Product 540X
$206,000
$57,000
$49,200
Product 137Y
156,000
49,000
27,000
Product 249S
93,000
18,000
47,800
For each product line, compute operating income using the
traditional costing system.
Product 540X
$
Product 137Y
$
Product 249S...
Ayala Inc. has conducted the following analysis related to its product lines, using a traditional costing...
Ayala Inc. has conducted the following analysis related to its
product lines, using a traditional costing system (volume-based)
and an activity-based costing system. Both the traditional and the
activity-based costing systems include direct materials and direct
labor costs.
Total Costs Products Product 540X Product 137Y Product 2495 Sales Revenue $195,000 158,000 84,000 Traditional $56,000 55,000 10,000 ABC $46,500 37,000 37,400 For each product line, compute operating income using the traditional costing system. Product 540x Product 137Y Product 249S LINK TO...
Exercise 18-2 Ayala Inc. has conducted the following analysis related to its product lines, using a...
Exercise 18-2 Ayala Inc. has conducted the following analysis related to its product lines, using a traditional costing system (volume-based) and an activity-based costing system. Both the traditional and the activity-based costing systems include direct materials and direct labor costs. Total Costs Products Product 540x Product 137Y Product 2495 Sales Revenue $211,000 164,000 86,000 Traditional $60,000 54,000 22,000 ABC $48,200 44,000 43,800 For each product line, compute operating income using the traditional costing system. Product 540Xs Product 137Y Product 2495...
Please help S Weygandt, Managerial Accounting, 8e Help System Announcements CALCULATOR PRINTER VERSION 4 BACK Exercise...
Please help
S Weygandt, Managerial Accounting, 8e Help System Announcements CALCULATOR PRINTER VERSION 4 BACK Exercise 4-11 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 over costs to all products at...
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...
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...
Exercise 4-10 (Video) (Part Level Submission) 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...
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 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 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...
Ayala Inc. has conducted the following analysis related to its
product lines, using a traditional costing system (volume-based)
and an activity-based costing system. Both the traditional and the
activity-based costing systems include direct materials and direct
labor costs.
Total Costs
Products
Sales Revenue
Traditional
ABC
Product 540X
$206,000
$57,000
$49,200
Product 137Y
156,000
49,000
27,000
Product 249S
93,000
18,000
47,800
For each product line, compute operating income using the
traditional costing system.
Product 540X
$
Product 137Y
$
Product 249S...
Ayala Inc. has conducted the following analysis related to its
product lines, using a traditional costing system (volume-based)
and an activity-based costing system. Both the traditional and the
activity-based costing systems include direct materials and direct
labor costs.
Total Costs Products Product 540X Product 137Y Product 2495 Sales Revenue $195,000 158,000 84,000 Traditional $56,000 55,000 10,000 ABC $46,500 37,000 37,400 For each product line, compute operating income using the traditional costing system. Product 540x Product 137Y Product 249S LINK TO...
Exercise 18-2 Ayala Inc. has conducted the following analysis related to its product lines, using a traditional costing system (volume-based) and an activity-based costing system. Both the traditional and the activity-based costing systems include direct materials and direct labor costs. Total Costs Products Product 540x Product 137Y Product 2495 Sales Revenue $211,000 164,000 86,000 Traditional $60,000 54,000 22,000 ABC $48,200 44,000 43,800 For each product line, compute operating income using the traditional costing system. Product 540Xs Product 137Y Product 2495...
Please help
S Weygandt, Managerial Accounting, 8e Help System Announcements CALCULATOR PRINTER VERSION 4 BACK Exercise 4-11 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 over costs to all products at...
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