A duration driver is: a. A simple count of the number of items an activity occurs....
A duration driver is:
| a. |
A simple count of the number of items an activity occurs. |
|
| b. |
An activity measure that is used for the life of the company. |
|
| c. |
A measure of the amount of time required to perform an activity. |
|
| d. |
An activity measure that is used for the life of an activity-based costing system. |
Homework Answers
Solution:
A duration driver is "A measure of the amount of time required to perform an activity."
Hence option c is correct.
Add Answer to:
A duration driver is:
a.
A simple count of the number of items an activity occurs....
Activity Level Activity Cost-Driver Base Cost Product A Product B Production setup Number of setups 90,000...
Activity Level Activity Cost-Driver Base Cost Product A Product B Production setup Number of setups 90,000 11 19 Materials handing & requisition Number of parts per unit 15,000 6 18 Packaging & shipping Number of units shipped 45,000 60,000 120,000 Total overhead 150,000 Paris, Inc, Produces two products, Product A and Product B. If currently allocates overhead costs using direct-labor hours, but the controller has recommended an activity-based costing (ABC) system using the following data: B. Compute the amount of...
9. Which of the following statements is true? a. Activity-based costing uses a number of activity...
9. Which of the following statements is true? a. Activity-based costing uses a number of activity cost pools, each of which is allocated to products on the basis of direct labor-hours. b. Activity rates in activity-based costing are computed by dividing costs from the first stage allocations by the activity measure for each activity cost pool. C. An activity-based costing system is generally easier to implement and maintain than traditional costing system. d. One of the goals of activity-based costing...
Activity Cost Pool Activity Measure Estimated Overhead $ Purchasing Number of Orders $12,000.00 Material Handling Number...
Activity Cost Pool Activity Measure Estimated Overhead $
Purchasing Number of Orders $12,000.00 Material Handling Number of
Receipts $15,000.00 Production orders Set-up Hours $20,250.00
Inspection Inspection Hours $16,000.00 Frame assembly Assembly
Hours $8,000.00 Machine related Machine Hours $30,000.00 Total
Manufacturing Overhead costs $101,250.00.
To complete an "activity-based" cost structure, you are required
to apply manufacturing overhead to each of the briefcase products
on the activity cost pool data provided. Note that the Activity
Cost Pools are determined by management and...
. CHAPTER 5 ACTIVITY-BASED COSTING AND ACTIVITY-BASED MANAGEMENT Required Under its simple costing system, FS allocated...
. CHAPTER 5 ACTIVITY-BASED COSTING AND ACTIVITY-BASED MANAGEMENT Required Under its simple costing system, FS allocated support costs to products at the rate of 30% of cost of goods sold. 1. Use the simple costing system to prepare a product-line profitability report for FS. 2. Use the ABC system to prepare a product-line profitability report for FS. 3. What new insights does the ABC system in requirement 2 provide to FS managers? 5-25 ABC, wholesale, customer profitability. Ramirez Wholesalers operates...
Activity (Cost) Machine maintenance ($360,000) Setups ($700,000) Packing ($180,000) Photo development ($660,800) Cost Driver Number of...
Activity (Cost) Machine maintenance ($360,000) Setups ($700,000) Packing ($180,000) Photo development ($660,800) Cost Driver Number of machine hours Number of setups Number of cartons Number of pictures Type of Textbook Deluxe Moderate Economy 360 1,080 1,440 20 15 30 50 5,600 3,600 2,600 35 10 Deluxe textbooks are made with the finest-quality paper, six-color printing, and many photographs. Moderate texts are made with three colors and a few photographs spread throughout each chapter. Economy books are printed in black and...
Type of Textbook Activity (Cost) Cost Driver Deluxe Moderate Economy Machine maintenance ($360,000) Number of machine...
Type of Textbook Activity (Cost) Cost Driver Deluxe Moderate Economy Machine maintenance ($360,000) Number of machine hours 300 900 1,200 Setups ($630,000) Number of setups 30 15 5 Packing ($162,000) Number of cartons 10 30 50 Photo development ($504,000) Number of pictures 4,000 2,000 1,000 Deluxe textbooks are made with the finest-quality paper, six-color printing, and many photographs. Moderate texts are made with three colors and a few photographs spread throughout each chapter. Economy books are printed in black and...
(Ch4) The first step in activity-based costing is to Select one: O a. assign manufacturing overhead...
(Ch4) The first step in activity-based costing is to Select one: O a. assign manufacturing overhead costs for each activity cost pool to products. O b. identify and classify the major activities involved in the manufacture of specific products. O c. calculate the activity-based overhead rate per cost driver. O d. identify the cost driver that has a strong correlation to the activity cost pool. (Ch4) Activity-based costing Select one: O a. uses direct labor as its primary cost driver....
1. Compute the total overhead allocated to each job under a simple costing system, where overhead...
1.
Compute the total overhead allocated to each job under a simple
costing system, where overhead is allocated based on
machine-hours.
2.
Compute the total overhead allocated to each job under an
activity-based costing system using the appropriate activity
drivers.
3.
Explain why Shirley's Custom Framing might favor the ABC
job-costing system over the simple job-costing system, especially
in its bidding process.
*There should be 10 total parts to this problem.
The job-costing system at Shirley's Custom Framing has five...
Drilling Company uses activity-based costing and provides this information: Manufacturing Activity Cost Driver Driver Rate Materials...
Drilling Company uses activity-based costing and provides this information: Manufacturing Activity Cost Driver Driver Rate Materials handling Number of parts $ 0.8 Machinery Number of machine hours 52 Assembly Number of parts 2.90 Inspection Number of finished units 31 Drilling has just completed 81 units of a component for a customer. Each unit required 101 parts and 3.05 machine hours. The prime cost is $1,310 per finished unit. All other manufacturing costs are classified as manufacturing overhead. Required: 1. Compute...
Please show how to work these out. Thanks! 61 Required Information Gable Company uses three activity...
Please show how to work these out. Thanks!
61 Required Information Gable Company uses three activity cost pools. Each pool has a cost driver. Information for Gable Company follows: Part 1 of 3 Activity Cost Pools Machining Designing costs Setup costs Total Cost of Pool Cost Driver $398,280 Number of machine hours 89,725 Number of design hours 79,413 Number of batches Estimated Cost Driver 99, see 9,250 490 0.07 points eBook Hint Print Required: 1. Compute the activity rate for...
9. Which of the following statements is true? a. Activity-based costing uses a number of activity cost pools, each of which is allocated to products on the basis of direct labor-hours. b. Activity rates in activity-based costing are computed by dividing costs from the first stage allocations by the activity measure for each activity cost pool. C. An activity-based costing system is generally easier to implement and maintain than traditional costing system. d. One of the goals of activity-based costing...
Activity Cost Pool Activity Measure Estimated Overhead $
Purchasing Number of Orders $12,000.00 Material Handling Number of
Receipts $15,000.00 Production orders Set-up Hours $20,250.00
Inspection Inspection Hours $16,000.00 Frame assembly Assembly
Hours $8,000.00 Machine related Machine Hours $30,000.00 Total
Manufacturing Overhead costs $101,250.00.
To complete an "activity-based" cost structure, you are required
to apply manufacturing overhead to each of the briefcase products
on the activity cost pool data provided. Note that the Activity
Cost Pools are determined by management and...
. CHAPTER 5 ACTIVITY-BASED COSTING AND ACTIVITY-BASED MANAGEMENT Required Under its simple costing system, FS allocated support costs to products at the rate of 30% of cost of goods sold. 1. Use the simple costing system to prepare a product-line profitability report for FS. 2. Use the ABC system to prepare a product-line profitability report for FS. 3. What new insights does the ABC system in requirement 2 provide to FS managers? 5-25 ABC, wholesale, customer profitability. Ramirez Wholesalers operates...
Activity (Cost) Machine maintenance ($360,000) Setups ($700,000) Packing ($180,000) Photo development ($660,800) Cost Driver Number of machine hours Number of setups Number of cartons Number of pictures Type of Textbook Deluxe Moderate Economy 360 1,080 1,440 20 15 30 50 5,600 3,600 2,600 35 10 Deluxe textbooks are made with the finest-quality paper, six-color printing, and many photographs. Moderate texts are made with three colors and a few photographs spread throughout each chapter. Economy books are printed in black and...
(Ch4) The first step in activity-based costing is to Select one: O a. assign manufacturing overhead costs for each activity cost pool to products. O b. identify and classify the major activities involved in the manufacture of specific products. O c. calculate the activity-based overhead rate per cost driver. O d. identify the cost driver that has a strong correlation to the activity cost pool. (Ch4) Activity-based costing Select one: O a. uses direct labor as its primary cost driver....
1.
Compute the total overhead allocated to each job under a simple
costing system, where overhead is allocated based on
machine-hours.
2.
Compute the total overhead allocated to each job under an
activity-based costing system using the appropriate activity
drivers.
3.
Explain why Shirley's Custom Framing might favor the ABC
job-costing system over the simple job-costing system, especially
in its bidding process.
*There should be 10 total parts to this problem.
The job-costing system at Shirley's Custom Framing has five...
Please show how to work these out. Thanks!
61 Required Information Gable Company uses three activity cost pools. Each pool has a cost driver. Information for Gable Company follows: Part 1 of 3 Activity Cost Pools Machining Designing costs Setup costs Total Cost of Pool Cost Driver $398,280 Number of machine hours 89,725 Number of design hours 79,413 Number of batches Estimated Cost Driver 99, see 9,250 490 0.07 points eBook Hint Print Required: 1. Compute the activity rate for...
Most questions answered within 3 hours.
-
What is responsible for Jupiter's enormous magnetic field?
asked 13 minutes ago -
At the end of the year, a company offered to buy 5,000 units of
a product...
asked 15 minutes ago -
Implement C++ program for each of the following.
Let D = [-48, -14, -8, 0, 1,...
asked 35 minutes ago -
Consider a labor market in which LD = 400 – 4W and LS = 250 +...
asked 49 minutes ago -
Let’s say you are teaching a typically-developing young child
how to eat with a spoon. Describe...
asked 32 minutes ago -
Ask Your Teacher A toy gun uses a spring to project a 5.6-g soft
rubber sphere...
asked 44 minutes ago -
*****DO NOT ANSWER THIS QUESTION IF YOU DON'T
KNOW*******
Question - PERSONAL DEVELOPMENT ESSAY and Detailed...
asked 51 minutes ago -
A certain rifle bullet has a mass of 5.25 g. Calculate the de
Broglie wavelength of...
asked 1 hour ago -
Research new software products that assist in project
communication management. Write a paper summarizing your findings,...
asked 1 hour ago -
the figure below to the left shows a beaker completely filled
with water. then a block...
asked 1 hour ago -
what is the duistribution channels of HUL in india and how they
distribute?
how is this...
asked 1 hour ago -
Batteries play an important role in our everyday lives. From
making many devices mobile, to allowing...
asked 1 hour ago