Calculate allocated cost
Activity rate | Allocated cost for product A | Allocated cost for Product B | |
Pool 1 | $8 per DL$ | 32000 | 48000 |
Pool 2 | $1200 per setup | 24000 | 36000 |
Pool 3 | $200 per hour | 10000 | 30000 |
Total allocated costs for each product | 66000 | 114000 | |
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...
You have an ABC system with three pools total cost in the pool pool 1 $20,000 pool 2 $15,000 pool 31 $10,000 product A 4,000 DL$ 20 setups 50 hours number of cost driver units product B 6,000 DL$ 30 setups 150 hours total 10,000 DL$ 50 setups 200 hours Compute the activity rates and the allocated costs for products A and B. activity rate allocated costs for allocated costs for product A product B pool 1 $ per DL$...
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 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...
P5-4A. Stage
Two ABC for Manufacturing Merlot Company has determined
its activity cost pools and cost drivers to be the following:
Cost
Pools
Setup……………………………………………………………………………………………………………………$59,500
Materials
handling……………………………………………………………………………………………….$16,000
Machine
operation……………………………………………………………………………………………….$300,000
Packing…………………………………………………………………………………………………………………$60,000
Total indirect
Manufacturing costs………………………………………………………………………..$435,500
Cost
drivers
Setups……………………………………………………………………………………………………………………..$350
Materials
moves………………………………………………………………………………………………………$640
Machine
hours…………………………………………………………………………………………………………$20,000
Packing
orders…………………………………………………………………………………………………………$1,000
One product made by
Merlot, metal casements, used the following activities during the
period to produce 500 unit:
Setups……………………………………………………………………………………………………………………..20
Materials
moves……………………………………………………………………………………………………….80
Machine
hours…………………………………………………………………………………………………………1,900
Packing
orders………………………………………………………………………………………………………….150
Required
Calculate the cost per unit of activity for each activity cost
pool...
Two-Stage ABC for Manufacturing Merlot Company has determined its activity cost pools and cost drivers to be the following: Cost Pools Setup Material handling Machine operation packing Total indirect manufacturing costs $112,000 25,600 480,000 60,000 $677,600 Cost drivers Setups Material moves Machine hours Packing orders 350 640 20,000 1,200 One product made by Merlot, metal casements, used the following activities during the period to produce 500 units: Setups Material moves 80 Machine hours 1,900 Packing orders 150 20 a. Calculate...
Gable Company uses three activity cost pools. Each pool has a cost driver. Information for Gable Company follows: Activity Cost Pools Machining Designing costs Setup costs Total Cost of Pool Cost Driver $312,000 Number of machine hours 73,600 Number of design hours 71,600 Number of batches Estimated Cost Driver 80,000 8,000 500 Required: 1. Compute the activity rate for each activity. (Round your answers to 2 decimal places.) Activity Rate per Machine Hour Activity Machining Design Costs Setup per Design...
Gable Company uses three activity cost pools. Each pool has a cost driver. Information for Gable Company follows: Activity Cost Pools Machining Designing costs Setup costs Total Cost of Pool Cost Driver $312,000 Number of machine hours 73,600 Number of design hours 71,600 Number of batches Estimated Cost Driver 80,000 8,000 500 Required: 1. Compute the activity rate for each activity. (Round your answers to 2 decimal places.) Activity Rate per Machine Hour Activity Machining Design Costs Setup per Design...
Question 1 faliacating 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 BTotal sales volume (units) 200 Revenue Costs 400 600 $16,000$80,000$96,000 $16,000 $19,200 $32,000 $40,000 $31,200 $5,600 $3.200 direct materials $8,000 direct labor OH costs Profit Generic Motors uses ABC to allacate the overhead costs. It examined the main activities in the firm, and decided to break up the...
Required Information Gable Company uses three activity cost pools. Each pool has a cost driver. Information for Gable Company follows: Activity Cost Pools Machining Designing costs Setup costs Total Cost of Pool Cost Driver $312,eee Number of machine hours 73,6ee Number of design hours 71,600 Number of batches Estimated Cost Driver Be, evo 8, eae 500 Re 1. red: mpute the activity rate for each activity. 1551fy each activity as facility, product, batch, or unit level. complete this question by...