Please answer the questions and provide solutions.
Homework Answers
a)
Activity rate for Activity 1 = Estimated cost/Estimated activity
= 36,000/3,000
= $12 per activity
b)
| Activity | Estimated cost | Total estimated activity | Activity rate | Activity used in Super | Cost allocated to Super |
| Activity 1 | $36,000 | 3,000 | 36,000/3,000 = $12 | 1,000 | 12 x 1,000 = $12,000 |
| Activity 2 | $12,000 | 1,000 | 12,000/1,000 = $12 | 250 | 12 x 250 = $3,000 |
| Activity 3 | $16,000 | 500 | 16,000/500 = $32 | 100 | 32 x 100 = $3,200 |
| $18,200 |
Cost per unit of Super = Total Cost allocated to Super/Number of units produced of Super
= 18,200/2,000
= $9
Kindly give a positive rating if you are satisfied with the answer. Feel free to ask if you have any doubt. Thanks.
Add Answer to:
Please answer the questions and provide solutions.
Modern Accessories has two products: Economy and Super. Production...
Matt Company uses activity-based costing. The company has two products: A and B. The annual production...
Matt Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A is 5,000 units and of Product B is 7,000 units. There are three activity cost pools, with estimated total cost and expected activity as follows: Expected Activity Activity Cost Pool Estimated Cost Product A Product B Total Activity 1 $24,000 200 400 600 Activity 2 36,000 700 200 900 Activity 3 81,200 800 3,000 3,800 The cost per unit...
5. Matt Company uses activity-based costing. The company has two products: A and B. The annual...
5. Matt Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A is 8,000 units and of Product B is 6,000 units. There are three activity overhead cost pools, with estimated total overhead cost and expected activity as follows: Activity Cost Pool Expected Activity Product A Product B Total Estimated Cost $20,000 $37,000 $91,200 Activity 1... Activity 2.......... Activity 3 100 800 800 400 200 3,000 500 1,000 3,800 The...
1. Paul Company has two products: A and B. The company uses activity-based costing. The estimated...
1. Paul Company has two products: A and B. The company uses activity-based costing. The estimated total cost and expected activity for each of the company's three activity cost pools are as follows: Activity Cost Pool Activity 1............ Activity 2 Activity 3. Estimated Cost $22,000 $16,240 $14,600 Expected Activity Product A Product B 400 100 380 200 500 250 Total 500 580 750 The activity rate under the activity-based costing system for Activity 3 is closest to: 2. James Company...
Adelberg Company has two products: A and B. The annual production and sales of Product A...
Adelberg Company has two products: A and B. The annual production and sales of Product A is 2,250 units and of Product B is 1,650 units. The company has traditionally used direct labor- hours as the basis for applying all manufacturing overhead to products. Product A requires 0.5 direct labor-hours per unit and Product B requires 0.8 direct labor-hours per unit. The total estimated overhead for next period is $104,900. The company is considering switching to an activity-based costing system...
5. Tanner Company has two products: A and B. The company uses activity-based costing and has...
5. Tanner Company has two products: A and B. The company uses activity-based costing and has prepared the following analysis showing the estimated total cost and expected activity for each of its three activity cost pools: Activity Cost Pool Activity 1 Activity 2 Activity 3 Estimated Overhead Cost $ 40,000 $ 29,200 $180,000 Expected Activity Product A Product B 200 800 1,000 500 600 5,400 Total 1,000 1,500 6,000 The annual production and sales level of Product A is 9,094...
Selena Company has two products: A and B. The company uses activity-based costing. The estimated total...
Selena Company has two products: A and B. The company uses activity-based costing. The estimated total cost and expected activity for each of the company's three activity cost pools are as follows: Expected Activity Activity Cost Pool Estimated Cost Product A Product B Total Activity 1 $17,600 800 300 1,100 Activity 2 12,000 500 200 700 Activity 3 26,000 800 400 1,200 The activity rate under the activity-based costing system for Activity 3 is closest to which of the following?
5 Lazano, Inc., manufactures and sells two products: Product W4 and Product Z2. Data concerning the...
5 Lazano, Inc., manufactures and sells two products: Product W4 and Product Z2. Data concerning the expected production of each product and the expected total direct labor-hours (DLHS) required to produce that output appear below: Expected Total Direct Labor-Hours Direct Labor. Hours Per Unit 6.0 4.0 Production 500 400 Product W4 3,000 Product 22 Total direct labor-hours 4,600 The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Estimated Expected Activity Total...
Adelberg Corporation makes two products: Product A and Product B. Annual production and sales are 1,000...
Adelberg Corporation makes two products: Product A and Product B. Annual production and sales are 1,000 units of Product A and 750 units of Product B. The company has traditionally used direct labor-hours as the basis for applying all manufacturing overhead to products. Product A requires 0.5 direct labor-hours per unit and Product B requires 0.4 direct labor-hours per unit. The total estimated overhead for next period is $89,140. The company is considering switching to an activity-based costing system for...
6 Fomer, Inc., manufactures and sells two products Product Z1 and Product Z8. The company has...
6 Fomer, Inc., manufactures and sells two products Product Z1 and Product Z8. The company has an activity based costing system with the following activity Cout pools, activity measures, and expected activity: Expected Activity Activity Coat Pools Labor-related Machine setups Order size Activity Measures DLHS setups MH Estimated Overhead Coat $112, 190 40.440 609,770 $762,400 Product z1 600 500 3,000 Product 28 2,000 700 3,200 Total 2,600 1,200 6,200 The activity rate for the Machine Setups activity cost pool under...
Snowden Industries produces two electronic decoders, P and Q. Decoder P is more sophisticated and requires...
Snowden Industries produces two electronic decoders, P and Q. Decoder P is more sophisticated and requires more programming and testing than does Decoder Q. Because of these product differences, the company wants to use activity-based costing to allocate overhead costs. It has identified four activity pools. Relevant information follows: Activity Pools Cost Pool Total Cost Driver Repair and maintenance on assembly machine $ 104,000 Number of units produced Programming cost 168,000 Number of programming hours Software inspections 12,000 Number of...
5. Matt Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A is 8,000 units and of Product B is 6,000 units. There are three activity overhead cost pools, with estimated total overhead cost and expected activity as follows: Activity Cost Pool Expected Activity Product A Product B Total Estimated Cost $20,000 $37,000 $91,200 Activity 1... Activity 2.......... Activity 3 100 800 800 400 200 3,000 500 1,000 3,800 The...
1. Paul Company has two products: A and B. The company uses activity-based costing. The estimated total cost and expected activity for each of the company's three activity cost pools are as follows: Activity Cost Pool Activity 1............ Activity 2 Activity 3. Estimated Cost $22,000 $16,240 $14,600 Expected Activity Product A Product B 400 100 380 200 500 250 Total 500 580 750 The activity rate under the activity-based costing system for Activity 3 is closest to: 2. James Company...
Adelberg Company has two products: A and B. The annual production and sales of Product A is 2,250 units and of Product B is 1,650 units. The company has traditionally used direct labor- hours as the basis for applying all manufacturing overhead to products. Product A requires 0.5 direct labor-hours per unit and Product B requires 0.8 direct labor-hours per unit. The total estimated overhead for next period is $104,900. The company is considering switching to an activity-based costing system...
5. Tanner Company has two products: A and B. The company uses activity-based costing and has prepared the following analysis showing the estimated total cost and expected activity for each of its three activity cost pools: Activity Cost Pool Activity 1 Activity 2 Activity 3 Estimated Overhead Cost $ 40,000 $ 29,200 $180,000 Expected Activity Product A Product B 200 800 1,000 500 600 5,400 Total 1,000 1,500 6,000 The annual production and sales level of Product A is 9,094...
5 Lazano, Inc., manufactures and sells two products: Product W4 and Product Z2. Data concerning the expected production of each product and the expected total direct labor-hours (DLHS) required to produce that output appear below: Expected Total Direct Labor-Hours Direct Labor. Hours Per Unit 6.0 4.0 Production 500 400 Product W4 3,000 Product 22 Total direct labor-hours 4,600 The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Estimated Expected Activity Total...
6 Fomer, Inc., manufactures and sells two products Product Z1 and Product Z8. The company has an activity based costing system with the following activity Cout pools, activity measures, and expected activity: Expected Activity Activity Coat Pools Labor-related Machine setups Order size Activity Measures DLHS setups MH Estimated Overhead Coat $112, 190 40.440 609,770 $762,400 Product z1 600 500 3,000 Product 28 2,000 700 3,200 Total 2,600 1,200 6,200 The activity rate for the Machine Setups activity cost pool under...
Most questions answered within 3 hours.
-
The average length of time between arrivals at a turnpike
toll-booth is 26 seconds. What is...
asked 1 hour ago -
(a) A piston at 6.1 atm contains a gas that occupies a volume of
3.5 L....
asked 2 hours ago -
Please answer true or false. Words
cannot be changed or added in to make it true...
asked 2 hours ago -
An empty test tube weighs 15.923 grams. Then,
MgCl2•6H2O is added into the test tube. After...
asked 2 hours ago -
Assume memory access is 10 units of time and disk access is
10000 units of time....
asked 2 hours ago -
1. Are all good samples random?
2. Magazines often report surveys giving statistics such as “63%...
asked 3 hours ago -
Under all the various types of market structures, firms
must eventually earn some economic profits for...
asked 2 hours ago -
Consider the following fitness regime for a single locus trait
with two co-dominant alleles: w11 =...
asked 2 hours ago -
A large cable company reports the following.
80% of its customers subscribe to its cable TV...
asked 3 hours ago -
Please answer the question in brief.
Discuss the role of ERP in organizations. Are ERP tools...
asked 2 hours ago -
Discuss the pros and cons of collaborative software such
as SameTime. Does it increase productivity? What...
asked 3 hours ago -
Buying your in-laws a gift because it’s expected is
due to the ____________ motive of gift-giving....
asked 3 hours ago