Question

Question 1 faliacating costs using ABC, product profit margin) Generic Motors Corporation has two product lines, A and B. Its

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Labor related

Activity Rate = Overheads/Labor dollars

= 8000/40,000

= $0.2 per dollar

A = 0.2*8000 = $1,600

B = 0.2*32,000 = $6,400

Sales related

Rate = 7200/600 = $12 per unit

A = 200*12 = 2,400

B = 400*12 = 4,800

Production Set up

Rate = 16,000/(200/10 + 400/5)

= $160 per batch

A = 20*160 = $3,200

B = 80*160 =$12,800

Profit Margin for A = 16,000-3,200-8,000-1600-2400-3200 = -$2,400

B = 80,000-16,000-32,000-6,400-4,800-12,800 = $8,000

Add a comment
Know the answer?
Add Answer to:
Question 1 faliacating costs using ABC, product profit margin) Generic Motors Corporation has two product lines,...
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
  • Question 1 (allocating costs using ABC, product profit margin) Generic Motors Corporation has two product lines, A and...

    Question 1 (allocating costs using ABC, product profit margin) Generic Motors Corporation has two product lines, A and B. Its revenue and costs for last year is as follows: Product A Product B Total sales volume (units) 50 100 150 Revenue 53,000 $15,000 $18,000 Costs: direct materials 5600 $3,000 $3,600 direct labor $1,500 $6,000 $7,500 OH costs $5,850 Profit $1,050 Generic Motors uses ABC to allocate the overhead costs. It examined the main activities in the firm, and decided to...

  • Question 1 (allocating costs using ABC, product profit margin) My NC Generic Motors Corporation has two...

    Question 1 (allocating costs using ABC, product profit margin) My NC Generic Motors Corporation has two product lines, A and B. Its revenue and costs for last year is as follows Product A Product B Total sales volume units) 100 200 300 Ravenue 510,000 350,000 560.000 Costs direct materials $2.000 $10,000 $12.000 direct labor 55.000 520,000 $25,000 OH costs $19.500 Profit $3.500 Generic Motors uses ABC to allocate the overhead costs. It examined the main activities in the firm, and...

  • Generic Motors Corporation has two product lines, A and B. Its revenue and costs for last...

    Generic Motors Corporation has two product lines, A and B. Its revenue and costs for last year is as follows: Product A Product 8 Total S00 sales volume (units) 250 Revenue Costs direct materials 750 $10,000 $50,000 $60,000 $2,000 $10,000 $12,000 $5,000 $20,000 s25,000 S19,500 $3,500 direct labor OH costs Profit Generic Motors uses ABC to allocate the overhead costs. It examined the main activities in the firm, and decided to break up the total overhead costs of $19,500 into...

  • Question 2: Allocating costs using ABC You have an ABC system with three pools number of...

    Question 2: Allocating costs using ABC You have an ABC system with three pools number of cost driver units total pool 1 total cost in the pool $80,000 $60,000 $40,000 product A 4,000 DL$ 20 setups 50 hours product B 6,000 DL$ 30 setups 150 hours pool 2 10,000 DL$ 50 setups 200 hours pool 3 Compute the activity rates and the allocated costs for products A and B. allocated costs for activity rate allocated costs for product A product...

  • Question 2: Allocating costs using ABC You have an ABC system with three pools number of...

    Question 2: Allocating costs using ABC You have an ABC system with three pools number of cost driver units total cost in the pool product B product A total рool 1 рool 2 рool 3 $80,000 4,000 DL$ 6,000 DL$ 10,000 DL$ $60,000 20 setups 30 setups 50 setups 150 hours 200 hours $40,000 50 hours Compute the activity rates and the allocated costs for products A and B. allocated costs for allocated costs for activity rate product A product...

  • Exercise 4-3 Compute ABC Product Costs [LO4-3] Larner Corporation is a diversified manufacturer of industrial goods....

    Exercise 4-3 Compute ABC Product Costs [LO4-3] Larner Corporation is a diversified manufacturer of industrial goods. The company's activity-based costing system contains the following six activity cost pools and activity rates: Activity Cost Pool Labor-related Machine-related Machine setups Production orders Shipments General factory Activity Rates $ 10.00 per direct labor-hour $ 6.00 per machine-hour $ 80.00 per setup $ 200.00 per order $ 200.00 per shipment $ 6.00 per direct labor-hour Cost and activity data have been supplied for the...

  • Mirabile Corporation uses activity-based costing to compute product margins. Overhead costs have already been allocated to...

    Mirabile Corporation uses activity-based costing to compute product margins. Overhead costs have already been allocated to the company's three activity cost pools--Processing, Supervising, and Other. The costs in those activity cost pools appear below: Processing $ 3,740 Supervising $ 27,840 Other $ 10,600 Processing costs are assigned to products using machine-hours (MHs) and Supervising costs are assigned to products using the number of batches. The costs in the Other activity cost pool are not assigned to products. Activity data appear...

  • Bachrodt Corporation uses activity-based costing to compute product margins. Overhead costs have already been allocated to...

    Bachrodt Corporation uses activity-based costing to compute product margins. Overhead costs have already been allocated to the company's three activity cost pools--Processing, Supervising, and other. The costs in those activity cost pools appear below: Processing Supervising other $ 21,600 $ 3,700 $ 10,700 07:46 Processing costs are assigned to products using machine-hours (MHs) and Supervising costs are assigned to products using the number of batches. The costs in the other activity cost pool are not assigned to products. Activity data...

  • Bachrodt Corporation uses activity-based costing to compute product margins. Overhead costs have already been allocated to...

    Bachrodt Corporation uses activity-based costing to compute product margins. Overhead costs have already been allocated to the company's three activity cost pools--Processing, Supervising, and other. The costs in those activity cost pools appear below: Processing Supervising other $ 21,600 $ 3,700 $ 10,700 07:46 Processing costs are assigned to products using machine-hours (MHs) and Supervising costs are assigned to products using the number of batches. The costs in the other activity cost pool are not assigned to products. Activity data...

  • Mirabile Corporation uses activity-based costing to compute product margins. Overhead costs have already been allocated to...

    Mirabile Corporation uses activity-based costing to compute product margins. Overhead costs have already been allocated to the company's three activity cost pools--Processing, Supervising, and Other. The costs in those activity cost pools appear below: Processing $ 4,320 Supervising $ 33,040 Other $ 10,800 Processing costs are assigned to products using machine-hours (MHs) and Supervising costs are assigned to products using the number of batches. The costs in the Other activity cost pool are not assigned to products. Activity data appear...

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