Otto Dieffenbach & Sons Inc. is a small manufacturing company that uses activity-based costing. Dieffenbach & Sons accumulates overhead in the following activity cost pools.
For each activity cost pool, indicate whether the activity cost pool would be unit-level, batch-level, product-level, or facility-level.
1. | Hiring personnel | |||
2. | Managing parts inventory | |||
3. | Purchasing | |||
4. | Testing prototypes | |||
5. | Designing products | |||
6. | Setting up equipment | |||
7. | Training employees | |||
8. | Inspecting machine parts | |||
9. | Machining | |||
10. | Assembling |
| 1. Facility-level Activity 2. Product-level Activity 3. Batch-level Activity 4. Product-level Activity 5. Product-level Activity 6. Batch-level Activity 7. Facility-level Activity 8. Batch-level or Unit-level Activity 9. Unit-level Activity 10. Unit-level Activity |
Exercise 4-13 (Essay) William Mendel & Sons, Inc. is a small manufacturing company in La Jolla that uses activity-based costing. Mendel & Sons accumulates overhead in the following activity cost pools. For each activity cost pool, indicate whether the activity cost pool would be unit-level, batch-level, product-level, or facility-level. Activity Cost Pools 1. Hiring personnel. 2. Managing parts inventory. 3. Purchasing. 4. Testing prototypes. 5. Designing products. 6. Setting up equipment. 7. Training employees. 8. Inspecting machined parts after each...
For each of the following activities, indicate the appropriate category (unit, batch, product, or facility level) and suggest a possible cost driver for each pool: Factory utilities Machine setups Research and development for a product Sanding rough edges of the product Packaging the product Developing new packaging Maintenance on equipment Assembling the products parts Materials handling costs Quality control testing
(a)Colour printing materialsselect a classification of activity costs Batch- or unit-levelBatch- or-product-levelFacility-levelProduct-level(b)Photocopy paperselect a classification of activity costs Unit-levelFacility-levelBatch- or unit-levelBatch- or-product-levelBatch-levelProduct-level(c)Depreciation of machinery (assume units-of-activity depreciation)select a classification of activity costs ...
Classify whether the activity cost pools are at the unit, batch, product or facility level (cost hierarchy). 1. Procurement of raw materials 2. Material handling 3. Machine set-ups 4. Production 5. Quality inspection 6. Distribution
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 $ 250,680 Number of machine hours 61,600 Number of design hours 66,482 Number of batches Estimated Cost Driver 71,600 7.ee 465 Required: 1. Compute the activity rate for each activity 2. Classify each activity as facility, product, batch, or unit level. Complete this question by entering...
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 $171,100 Number of machine hours 45,100 Number of design hours 66,123 Number of batches Estimated Cost Driver 59,000 5,500 465 Required: 1. Compute the activity rate for each activity. 2. Classify each activity as facility, product, batch, or unit level. Complete this question by entering your...
give example of cost drives and activities for each level (unit, batch, product and facility) of ice cream manufacture. be specific i.e purchasing is not specific , purchasing cream is specific
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 $280,460 Number of machine hours 67,500 Number of design hours 70,070 Number of batches Estimated Cost Driver 75,800 7,500 490 Required: 1. Compute the activity rate for each activity. 2. Classify each activity as facility, product, batch, or unit level. Complete this question by entering your answers in...
Identify each of the following activities as unit level (U), batch level (B), product level (P), or facility level (F) to indicate the way each is incurred with respect to production. [Select] 1 Organizing production [Select] v 2 Calibrating machines Select] 3 Printing checks [Select) v 4 Cleaning workplace Select] 5 Providing electricity Select) 6 Assembling components [Select) 7 Cutting parts [ Select] 8 Sampling product quality [Select) ✓ 9 Receiving shipments [ Select ] 10 Providing personnel support
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 $183,300 Number of machine hours 47,725 Number of design hours 71,150 Number of batches Estimated Cost Driver 61,100 5,750 500 Required: 1. Compute the activity rate for each activity. 2. Classify each activity as facility, product, batch, or unit level. Complete this question by entering your...