Wawasee Lumber Company produces lumber for many applications. The company had the following data for July:
During a meeting with senior leadership, you are asked about several possible scenarios regarding possible changes in sales and costs. Use the spreadsheet to calculate all the scenarios to bring back to the next meeting.
Activity cost pool | Activity Measure | Activity Rate |
Order size | Direct labor hours | $14 per direct labor hour |
Customer orders | Customer orders | $114 per customer order |
Quality testing | Test hours | $74 per hour |
Sales | Sales calls | $634 per sales call |
Order #1 required 475 direct labor hours, 9 hours of quality testing, and 7 sales calls | ||
Order #2 required 115 direct labor hours, 48 hours of quality testing, and 19 sales calls |
Total overhead cost assigned | ||
Activity Cost Pool | Order #1 | Order #2 |
Total Overhead cost |
Wawasee Lumber Company produces lumber for many applications. The company had the following data for July:...
Lumber Company produces lumber for many applications. The company had the following data for July: Units Total Per Unit Sales 14500 826500 57 Variable Expenses 493000 34 Contribution Margin 333500 23 Fixed Expenses 165000 Net Operating Income 168500 During a meeting with senior leadership, you are asked about several possible scenarios regarding possible changes in sales and costs. Use the spreadsheet to calculate all the scenarios to bring back to the next meeting. Activity cost pool Activity Measure Activity Rate...
Durban Metal Products, Ltd., of the Republic of South Africa makes specialty metal parts used in applications ranging from the cutting edges of bulldozer blades to replacement parts for Land Rovers. The company uses an activity-based costing system for internal decision-making purposes. The company has four activity cost pools as listed below: Activity Cost Pool Order size Customer orders Product testing Selling Activity Measure Number of direct labor-hours Number of customer orders Number of testing hours Number of sales calls...
Durban Metal Products, Ltd.., of the Republic of South Africa makes specialty metal parts used in applications ranging from the cutting edges of bulldozer blades to replacement parts for Land Rovers. The company uses an activity-based costing system for internal decision-making purposes. The company has four activity cost pools as listed below Activity Cost Pool Order size Activity Heasure Number of direct labor-hours Activity Rate 16.80 per direct labor-hour $ Customer orders Product testing Number of customer orders 366.00 per...
Durban Metal Products, Ltd., of the Republic of South Africa makes specialty metal parts used in applications ranging from the cutting edges of bulldozer blades to replacement parts for Land Rovers. The company uses an activity-based costing system for internal decision-making purposes. The company has four activity cost pools as listed below: Activity Cost Pool Order size Customer orders Product testing Selling Activity Measure Number of direct labor-hours Number of customer orders Number of testing hours Number of sales calls...
Durban Metal Products, Ltd., of the Republic of South Africa makes specialty metal parts used in applications ranging from the cutting edges of bulldozer blades to replacement parts for Land Rovers. The company uses an activity-based costing system for internal decision-making purposes. The company has four activity cost pools as listed below: Activity Cost Pool Order size Customer orders Product testing Selling Activity Measure Number of direct labor-hours Number of customer orders Number of testing hours Number of sales calls...
Durban Metal Products, Ltd., of the Republic of South Africa makes specialty metal parts used in applications ranging from the cutting edges of bulldozer blades to replacement parts for Land Rovers. The company uses an activity-based costing system for internal decision-making purposes. The company has four activity cost pools as listed below: Activity Cost Pool Order size Customer orders Product testing Selling Activity Measure Number of direct labor-hours Number of customer orders Number of testing hours Number of sales calls...
Durban Metal Products, Ltd., of the Republic of South Africa makes specialty metal parts used in applications ranging from the cutting edges of bulldozer blades to replacement parts for Land Rovers. The company uses an activity-based costing system for internal decision-making purposes. The company has four activity cost pools as listed below: Activity Cost Pool Activity Measure Activity Rate Order size Number of direct labor-hours $ 17.30 per direct labor-hour Customer orders Number of customer orders $ 362.00 per customer...
Durban Metal Products, Ltd., of the Republic of South Africa makes specialty metal parts used in applications ranging from the cutting edges of bulldozer blades to replacement parts for Land Rovers. The company uses an activity-based costing system for internal decision-making purposes. The company has four activity cost pools as listed below: Activity Cost Pool Activity Measure Activity Rate Order size Number direct labor-hours $ 17.00 per direct labor-hour Customer orders Number customer orders 360.00 per customer order Product testing...
Durban Metal Products, Ltd., of the Republic of South Africa makes specialty metal parts used in applications ranging from the cutting edges of bulldozer blades to replacement parts for Land Rovers. The company uses an activity-based costing system for internal decision-making purposes. The company has four activity cost pools as listed below: Activity Cost Pool Order size Customer orders Product testing Selling Activity Measure Number of direct labor-hours Number of customer orders Number of testing hours Number of sales calls...
Chapter 7 Homework problems Saved Help Save & Exit Submit Check my work 2 Durban Metal Products, Ltd.., of the Republic of South Africa makes specialty metal parts used in applications ranging from the cutting edges of bulldozer blades to replacement parts for Land Rovers. The company uses an activity-based costing system for internal decision-making purposes. The company has four activity cost pools as listed below: 5 Activity Cost Pool Order size points Activity Measure Number of direct labor-hours Number...