Which of the following tasks is not required when using a two-stage activity-based costing model? Select...
Which of the following tasks is not required when using a two-stage activity-based costing model?
Select one:
A. Determining the cost per unit of activity
B. Determining how much direct labor each cost object consumes
C. Identifying activities
D. Assigning costs to activities
Homework Answers
Which of the following tasks is not required when using a two-stage activity-based costing model?
Two stage based costing model use:
First stage = Cost allocated to activity
Second stage = Activity cost allocted to product
So cost per unit of activity is not required
So answer is a) Determining the cost per unit of activity
Add Answer to:
Which of the following tasks is not required when using
a two-stage activity-based costing model?
Select...
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Doede Corporation uses activity-based costing to compute product margins. In the first stage, the activity-based costing system allocates two overhead accounts equipment depreciation and supervisory expense to three activity cost pools-Machining Order Filling, and Other-based on resource consumption Data to perform these allocations appear below: Overhead costs Equipment depreciation Supervisory expense $88,000 $12,700 Distribution of Resource Consumption Across Activity Cost Pools: Equipment depreciation Supervisory expense Activity Cost Pools Machining Order Filling 0.50 9.30 0.5e 0.29 Other @.20 0.30 In the...
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Plantwide versus Departmental Rates, Product-Costing Accuracy: Activity-Based Costing Ramsey Company produces speakers (Model A and Model B). Both products pass through two producing departments, Model A's production is much more labor-intensive than that of Model B. Model B is also the more popular of the two speakers. The following data has been gathered for the two products Product Data Product Data Model A Model B Units produced per year 10,000 100,000 Prime costs $150,000 $1,500,000 Direct labor hours 140,000 300,000...
Pro blem 2 (Supplemental Problem #2)-Activity-based costing versus traditional costing sunglasses. The company uses a normal cos based on direct labor hours Lovelace Company produces only two products: reading glasses and sung system and overhead costs are currently allocated using a plant-wide overhead rate products. Itants have recommended that the company use activity-based costing to charge overhead to he company expects to produce 4,000 reading glasses and 8,000 sunglasses this year. Each pair of reading glasses requires two direct labor...
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