Homework Answers
5.1.1
| Activities | Cost | Activity Capacity | Activity Cost Rate | |
| Setup costs | 60000 | 300 | 200 | per setup |
| Ordering costs | 45000 | 4500 | 10 | per order |
| Machine costs | 90000 | 18000 | 5 | per machine hour |
| Receiving | 25000 | 50000 | 0.5 | per part |
5.1.2
| Book 1: Bassie | Book 2: The Other Story | |||||
| Activities | Activity Cost Rate | Activity Usage | Cost | Activity Usage | Cost | |
| Setup costs | 200 | per setup | 1 | 200 | 1 | 200 |
| Ordering costs | 10 | per order | 4 | 40 | 2 | 20 |
| Machine costs | 5 | per machine hour | 2000 | 10000 | 2000 | 10000 |
| Receiving | 0.5 | per part | 20 | 10 | 40 | 20 |
| Total indirect cost | 10250 | 10240 | ||||
| Number of units | 100 | 100 | ||||
| Indirect cost per unit | 102.5 | 102.4 | ||||
5.1.3
| Book 1: Bassie | Book 2: The Other Story | |
| Direct materials | 750 | 850 |
| Direct labor | 600 | 600 |
| Indirect costs | 10250 | 10240 |
| Total cost | 11600 | 11690 |
| Number of units | 100 | 100 |
| Total cost per unit | 116 | 116.9 |
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Bonita Inc. has identified the following overhead costs and cost
drivers for next year.
Overhead
Item
Expected
Cost
Cost
Driver
Expected
Actual Transactions
Setup costs
$87,912
No. of setups
396
Ordering costs
46,800
No. of orders
3,900
Maintenance costs
125,000
Machine hours
25,000
Power
26,495
Kilowatt hours
75,700
The following are two of the jobs completed during the
year:
Job 700
Job 701
Direct materials
$1,200
$600
Direct labour
$890
$420
Units completed
250
100
Direct labour hours
40
20...
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Bonita Inc. has identified the following overhead costs and cost
drivers for next year.
Overhead
Item
Expected
Cost
Cost
Driver
Expected
Actual Transactions
Setup costs
$87,912
No. of setups
396
Ordering costs
46,800
No. of orders
3,900
Maintenance costs
125,000
Machine hours
25,000
Power
26,495
Kilowatt hours
75,700
The following are two of the jobs completed during the
year:
Job 700
Job 701
Direct materials
$1,200
$600
Direct labour
$890
$420
Units completed
250
100
Direct labour hours
40
20...
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