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
1)Procurement of raw materials = Batch level
2)Material Handling = Unit level
3)Machine set ups = Batch level
4)Production = Product level
5)Quality inspection = Batch level
6)Distribution = Batch level
Classify whether the activity cost pools are at the unit, batch, product or facility level (cost...
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
(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 ...
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 Product-level activityFacility-level activityBatch-level activityBatch-level or unit-level activityUnit-level activity2.Managing parts inventory ...
Required: 1., 2. & 3. Classify each activity listed as facility product, batch, or unit level, identify a cost driver for each activity listed and indicate whether each activity is value-added or non-value-added. Lovel Cost Driver Unit Activity Storing inventory Creating molds Pouring plaster Firing pots in Kiln Sanding and finishing Painting Performing quality control Ordering materials Delivering an order to a large customer such as Home Depot Insuring the manufacturing facility Reconfiguring machinery between batches Value Added Non- Value...
The accountant for Snappy Photograph Enterprise (SPE) has estimated the following activity cost pools and activity drivers for the coming year: Activity Budgeted overhead Activity driver Activity level cost (RM) Machine set ups 300,000 No. of set ups 100 set ups Material handling 150,000 Weight of raw 50,000 kg material Hazardous waste 75,000 Weight of hazardous 10,000 kg control chemicals used Quality control No. of inspection 1,000 inspections Other overhead cost 300,000 Machine hours 20,000 hours Total 937,000 112,500 An...
12. Which of the following activity costs would likely be included in a batch-level activity cost pool? A. Per unit inspection costs B. Machine set-up costs C. Quality control costs D. All of these answers are correct. 13. A product-level activity center would likely include all of the following costs except: A. engineering development costs. B. legal fees to obtain and protect patents. C. packaging design costs. D. materials handling costs.
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
Which of the following cost pools are used to classify costs under activity-based costing? Unit Batch Product Facility A) Yes Yes Yes No B) Yes Yes Yes Yes C) No Yes Yes No D) Yes No Yes Yes E) Yes Yes No No
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...
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...