First Stage allocation of Overhead- Advanced Product Corporation | |||||
Direct Labor Support | Order Processing | Customer Support | Other | Total | |
Wages and salaries | 40% | 30% | 20% | 10% | 100% |
( 300000* specific %) | $120,000 | $90,000 | $60,000 | $30,000 | $300,000 |
Other overhead costs | 30% | 10% | 20% | 40% | 100% |
( 100000* specific %) | $30,000 | $10,000 | $20,000 | $40,000 | $100,000 |
Total | $150,000 | $100,000 | $80,000 | $70,000 | $400,000 |
2. Computation of Activity rate | ||||
Direct Labor Support | Order Processing | Customer Support | ||
Cost Pool- Wages & Salaries | $120,000 | $90,000 | $60,000 | |
Activity Pool | ||||
Direct Labor Hours | 20000 | |||
Orders | 400 | |||
Customers | 200 | |||
Others | ||||
Activity Rate for wages & Salaries | $6.00 | $225 | $300 | |
Cost Pool- other Overhead cost | $30,000 | $10,000 | $20,000 | |
Activity Pool | ||||
Direct Labor Hours | 20000 | |||
Orders | 400 | |||
Customers | 200 | |||
Others | ||||
Activity Rate for other overhead cost | $1.50 | $25 | $100 |
Part-3 | ||||
Direct Labor Support | Order Processing | Customer Support | Total | |
Activity | 20 DLH( 10*2) | 1 order | 1 customer | |
Wages and salaries | $1,200.00 | $225.00 | $300.00 | $1,725.00 |
($6*20) | ||||
Other overhead costs | $30.00 | $25.00 | $100.00 | $155.00 |
(1.5*20) | ||||
Total cost | $1,230.00 | $250.00 | $400.00 | $1,880.00 |
Computation of Custoer Margin | |
Sales( 10X 300) | $3,000.00 |
Less: Material Cost (180X10) | $1,800.00 |
Less: Labour Cost (50X10) | $500.00 |
Less: Overhead Cost | |
Direct labour Support | $1,230.00 |
Order Processing | $250.00 |
Customer Support | $400.00 |
Customer Margin | -$1,180.00 |
The following activities occur at Greenwich Corporation, a company that manufactures a variety of products. Advanced...
Advanced Products Corporation has supplied the following data from its activity-based costing system: Overhead Costs Wages and salaries Other overhead costs Total overhead costs $ 300,000 100,000 $ 400,000 Activity Cost Pool Supporting direct labor Order processing Customer support Other Activity Measure Number of direct labor-hours Number of customer orders Number of customers This is an organization- sustaining activity Total Activity for the Year 20,000 DLHS 400 orders 200 customers Not applicable Distribution of Resource Consumption Across Activities Supporting Order...
Advanced Products Corporation has supplied the following data from its activity-based costing system: Overhead Costs Wages and salaries Other overhead costs Total overhead costs $ 300,000 100,000 $ 400,000 Activity Cost Pool Supporting direct labor Order processing Customer support Other Activity Measure Number of direct labor-hours Number of customer orders Number of customers This is an organization- sustaining activity Total Activity for the Year 20,000 DLHS 400 orders 200 customers Not applicable Distribution of Resource Consumption Across Activities Supporting Order...
Advanced Products Corporation has supplied the following data from its activity-based costing system: Overhead Costs $ зее, еее Wages and salaries Other overhead costs 100, 000 $ 400,000 Total overhead costs Total Activity for the Activity Cost Pool Supporting direct labor Order processing Customer support Other Activity Measure Number of direct labor-hours Number of customer orders Number of customers This is an organization- sustaining activity Year 20,000 DLHS 400 orders 200 customers Not applicable Distribution of Resource Consumption Across Activities...
Mustafa Enterprises makes a variety of products
Mustafa Enterprises makes a variety of products that it sells to other businesses. The company's activity-based costing system has four activity cost pools for assigning costs to products and customers. Details concerning that ABC system are listed below: Activity Cost Pool Activity Measure Activity Rate Supporting assembly Direct labor-hours (DLHS) $ 7.50 per DLH Processing batches Number of batches 111.65 per batch Processing orders Number of orders $ 86.00 per order Serving customers...
Exercise 7-16 Comprehensive Activity-Based Costing Exercise (LO2, LO3, LO4) Cancico Communications has supplied the following data for use in its ABC system: Overhead Costs Wages and salaries Other overhead costs $267,500 152,000 Total overhead costs $419,500 Activity Cost Pool Direct labour support Order processing Customer support Other Activity Measure Number of direct labour-hours Number of orders Number of customers These costs are not allocated to products or customers Total Activity 7,630 DLHS 450 orders 110 customers Distribution of Resource Consumption...
Exercise 7-16 Comprehensive Activity-Based Costing Exercise (LO2, LO3, LO4] Cancico Communications has supplied the following data for use in its ABC system: 25 Overhead Costs Wages and salaries Other overhead costs points $295,000 163,000 Total overhead costs $458,000 eBook References Activity Cost Pool Direct labour support Order processing Customer support Other Activity Measure Number of direct labour-hours Number of orders Number of customers These costs are not allocated to products or customers Total Activity 12,110 DLHS 500 orders 120 customers...
Exercise 7-16 Comprehensive Activity-Based Costing Exercise (LO2, LO3, LO4] Cancico Communications has supplied the following data for use in its ABC system: Overhead Costs Wages and salaries Other overhead costs $ 280,000 157,000 Total overhead costs $437,000 Activity Cost Pool Direct labour support Order processing Customer support Other Activity Measure Number of direct labour-hours Number of orders Number of customers These costs are not allocated to products or customers Total Activity 7,955 DLHS 450 orders 200 customers NA Distribution of...
ScholfieldEnterprises makes a variety of products that it sells to other businesses. The company’s activity-based costing system has four activity cost pools for assigning costs to products and customers. Details concerning that ABC system are listed below: Activity Cost Pool Activity Measure Activity Rate Supporting assembly Direct labor-hours (DLHs) $ 6.55 per DLH Processing batches Number of batches $ 138.20 per batch Processing orders Number of orders $ 52.60 per order Serving customers Number of customers $ 1,191.00 per customer...
Exercise 7-16 Comprehensive Activity-Based Costing Exercise
[LO2, LO3, LO4]
Cancico Communications has supplied the following data for use
in its ABC system:
Overhead Costs
Wages and salaries
$
295,000
Other overhead costs
163,000
Total overhead costs
$
458,000
Activity Cost Pool
Activity Measure
Total Activity
Direct labour support
Number of direct labour-hours
12,110
DLHs
Order processing
Number of orders
500
orders
Customer support
Number of customers
120
customers
Other
These costs are not allocated
to products or customers
NA
Distribution...
Cancico Communications has supplied the following data for use
in its ABC system:
Overhead Costs
Wages and salaries
$
295,000
Other overhead costs
163,000
Total overhead costs
$
458,000
Activity Cost Pool
Activity Measure
Total Activity
Direct labour support
Number of direct labour-hours
12,110
DLHs
Order processing
Number of orders
500
orders
Customer support
Number of customers
120
customers
Other
These costs are not allocated
to products or customers
NA
Distribution of Resource Consumption
across Activity Cost Pools
Direct
Labour...