Locke Data Processing reported expenses of $1.87 million for indirect labor, of which $0.97 million was...
Locke Data Processing reported expenses of $1.87 million for indirect labor, of which $0.97 million was for data analysis and $0.90 million was for data entry. Locke recorded 10,000 hours of data analysis and 30,000 hours of data entry. What are the activity-based rates for each area of direct labor?
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Homework Answers
Activity based rate = Cost pool / cost driver
Data analysis, cost pool is $970,000 and cost driver is 10,000 hours
Data Entry, cost pool is $900,000 and cost driver is 30,000 hours
| Activity | Calculation | Activity based rate |
| Data analysis | $970,000 / 10,000 | $97 per hour |
| Data entry | $900,000/30,000 | $30 per hour |
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Locke Data Processing reported expenses of $1.87 million for
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A. Compute the pool rates that would be used
for order processing, machine processing, and quality in an
activity-based costing system.
B. Assuming use of activity-based costing, compute the unit
manufacturing costs of Standard and Premium if the
expected manufacturing volume is met.
Autumn, Inc. manufactures Standard products and Premium products. Autumn applies overhead based on direct labor hours. Estimated overhead and direct labor hours are $1,625,000 and 28,000 hours, respectively. Information about the company's products follows: Standard- Estimated...
3. Determine the activity rates, assuming that the indirect labor is associated with activities rather than with the production departments. Round per unit amounts to the nearest whole cent. Activity Activity Rate Production Control $ 474 per prod. run Materials Handling $ 36 per move Cutting Department $ 26 per dih Finishing Department 32 per dih 4. Determine the total and per-unit cost assigned to each product under activity-based costing. Round the per unit amounts to the nearest whole cent....
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