1. Tatman Corporation uses an activity-based costing system with the following three activity cost pools:
Activity Cost Pool |
Total Activity |
Fabrication |
10,000 Machine-hours |
Order Processing |
800 Orders |
Other |
N/A |
The other activity pool is used to accumulate costs of idle capacity and organization-sustaining costs.
The company has provided the following data concerning its costs:
Wages and Salaries |
320,000 |
Depreciation |
220,000 |
Occupancy |
120,000 |
Total |
660,000 |
The distribution of resource consumptions across activity cost pools is given below: (Activity Cost Pools/Order)
Fabrication |
Processing |
Other |
Total |
|
Wages and salaries |
20% |
65% |
15% |
100% |
Depreciation |
15% |
35% |
50% |
100% |
Occupancy |
5% |
70% |
25% |
100% |
The activity rate for the Fabrication activity cost pool is closest to:
$3.30 per machine-hour
$13.20 per machine-hour
$10.30 per machine-hour
$8.80 per machine-hour
2. Mayeux Corporation uses an activity-based costing system with three activity cost pools. The company has provided the following data concerning its costs and its activity based costing system:
Costs:
Wages & salaries $320,000
Depreciation $160,000
Utilities $240,000
TOTAL $720,000
Distribution of resource consumption:
Assembly |
Setting Up |
Other |
Total |
|
Wages & salaries |
50% |
40% |
10% |
100% |
Depreciation |
10% |
55% |
35% |
100% |
Utilities |
15% |
50% |
35% |
100% |
How much cost, in total, would be allocated in the first-stage allocation to the Setting Up activity cost pool?
$360,000
$336,000
$288,000
$348,000
3. Feldpausch Corporation has provided the following data from its activity-based costing system:
Activity Cost Pool |
Total Cost |
Total Activity |
Assembly |
$1,137,360 |
84,000 machine-hours |
Processing orders |
$28,479 |
1,100 orders |
Inspection |
$97,155 |
1,270 inspection-hours |
The company makes 470 units of product W26B a year, requiting a total of 660 machine-hours, 50 orders, and 40 inspection-hours per year. The product’s direct materials cost is $40.30 per unit and its direct labor cost is $42.22 per unit. The product sells for $118.00 per unit. According to the activity-based costing system, the product margin for product W26B is:
$6,444.70 per unit
$4,679.20 per unit
$3,384.70 per unit
$16,675.60 per unit
4. Francis Manufacturing Company is currently preparing its cash budge for the next month and has gathered the following information:
Expected cash receipts |
$39,400 |
Expected disbursements: |
|
Direct Materials |
$12,000 |
Direct Labor |
$9,000 |
Manufacturing Overhead |
$11,500 |
Selling/Administrative Expenses |
$22,000 |
The beginning cash balance will be $6,000 and the company requires a minimum cash balance at the end of the month of $5,000. How much will Francis Manufacturing need to borrow to meet its cash needs for the month?
$9,100
$14,100
$20,100
None of these
1. Tatman Corporation uses an activity-based costing system with the following three activity cost pools: Activity...
Leaper Corporation uses an activity-based costing system with the following three activity cost pools: Activity Cost Pool Fabrication Order processing Other Total Activity machine- 40,000 hours 200 orders Not applicable The Other activity cost pool is used to accumulate costs of idle capacity and organization-sustaining costs. The company has provided the following data concerning its costs: Wages and salaries Depreciation Occupancy Total $360,000 140,000 160,000 $660,000 The distribution of resource consumption across activity cost pools is given below: Wages and...
Leaper Corporation uses an activity-based costing system with the following three activity cost pools: Total Activity Activity Cost Pool machine- Fabrication 35,000 hours Order processing 300 orders Other Not applicable The Other activity cost pool is used to accumulate costs of idle capacity and organization-sustaining costs. The company has provided the following data concerning its costs: Wages and salaries Depreciation $420,000 170,000 190,000 Occupancy $780,000 Total The distribution of resource consumption across activity cost pools is given below: Activity Cost...
Leaper Corporation uses an activity-based costing system with the following three activity cost pools: Activity Cost Pool Fabrication Order processing Other Total Activity machine- 45,000 hours 250 orders Not applicable bints 8 01:09:01 The Other activity cost pool is used to accumulate costs of idle capacity and organization-sustaining costs. The company has provided the following data concerning its costs: Wages and salaries Depreciation Occupancy Total $ 490,000 205,000 225,000 $920,000 The distribution of resource consumption across activity cost pools is...
Feldpausch Corporation has provided the following data from its activity-based costing system: Activity Cost Pool Total Cost Total Activity Assembly $ 1,643,324 62,200 machine-hours Processing orders $ 57,859 1,970 orders Inspection $ 106,860 1,560 inspection-hours The company makes 500 units of product W26B a year, requiring a total of 1,770 machine-hours, 103 orders, and 39 inspection-hours per year. The product's direct materials cost is $58.42 per unit and its direct labor cost is $14.59 per unit. The product sells for...
Feldpausch Corporation has provided the following data from its activity-based costing system: Activity Cost Pool Total Cost Total Activity Assembly $ 1,553,789 58,700 machine-hours Processing orders $ 73,786 2,520 orders Inspection $ 140,890 1,930 inspection-hours The company makes 1,030 units of product W26B a year, requiring a total of 1,840 machine-hours, 79 orders, and 31 inspection-hours per year. The product's direct materials cost is $54.47 per unit and its direct labor cost is $18.29 per unit. The product sells for...
Feldpausch Corporation has provided the following data from its activity-based costing system: Activity Cost Pool Total Cost Total Activity Assembly $ 1,150,100 62,000 machine-hours Processing orders $ 54,554 1,860 orders Inspection $ 194,310 2,550 inspection-hours The company makes 990 units of product W26B a year, requiring a total of 1,610 machine-hours, 65 orders, and 30 inspection-hours per year. The product's direct materials cost is $52.35 per unit and its direct labor cost is $17.21 per unit. The product sells for...
Feldpausch Corporation has provided the following data from its activity-based costing system Activity Cost Pool Assembly Processing orders Total Cost $1,137,360 Total Activity 84,000 machine-hours 1,100 orders 28,479 inspection Inspection $ 97,155 1,270 hours The company makes 470 units of product W268 a year, requiring a total of 660 machine-hours, 50 orders, and 40 inspection-hours per year. The product's direct materials cost is $40.30 per unit and its direct labor cost is $42.22 per unit. The product sells for $118.00...
CCL Corporation has provided the following data from its activity-based costing (ABC) system: Activity Pool Total Cost Total Activity 84,000 machine hours Assembly $1,137,360 Processing orders $28,479 1,100 orders Inspection $97,155 1,270 inspection hours The company produces and sells 470 units of product W26B a year, requiring a total of 660 machine hours, 50 orders, and 40 inspection hours per year. The product's direct materials cost is $40.30 per unit and its direct labor cost is $42.22 per unit. The...
Ravelo Corporation has provided the following data from its activity-based costing system: Activity Cost Pools Estimated Overhead Cost Expected Activity Assembly $ 506,520 48,000 machine-hours Processing orders $ 58,263 1,500 orders Inspection $ 81,589 1,510 inspection-hours Data concerning the company's product L19B appear below: Annual unit production and sales 510 Annual machine-hours 1,070 Annual number of orders 150 Annual inspection hours 100 Direct materials cost $ 45.74 per unit Direct labor cost $ 18.45 per unit According to the activity-based...
6. Sarah Corporation has provided the following data from its activity-based costing system: Activity Cost Pool Total Cost Total Activity Assembly .................. $387,000 25,000 machine-hours Processing orders ........ $68,510 1,700 orders Inspection $129,117 1,930 inspection-hours The company makes 240 units of product T91H a year, requiring a total of 550 machine-hours, 90 orders, and 40 inspection-hours per year. The product's direct materials cost is $16.98 per unit and its direct labor cost is $12.09 per unit. According to the activity-based...