Assigning Costs to Activities, Resource Drivers The Receiving Department has three activities: unloading, counting goods, and...
Assigning Costs to Activities, Resource Drivers
The Receiving Department has three activities: unloading, counting goods, and inspecting. Unloading uses a forklift that is leased for $21,500 per year. The forklift is used only for unloading. The fuel for the forklift is $5,200 per year. Other operating costs (maintenance) for the forklift total $3,750 per year. Inspection uses some special testing equipment that has depreciation of $3,250 per year and an operating cost of $1,500. Receiving has three employees who have an average salary of $45,000 per year. The work distribution matrix for the receiving personnel is as follows:
| Activity | Percentage of Time on Each Activity |
| Unloading | 40% |
| Counting | 25% |
| Inspecting | 35% |
No other resources are used for these activities.
Required:
1. Calculate the cost of each activity.
| Unloading | $ |
| Counting | $ |
| Inspecting | $ |
Homework Answers
Calculation of cost of each activity:
| Statement showing calculations | ||||
| Activity | Forklift Costs | Testing Equipment +Associated Costs | Receiving Salaries | Total Costs allocated to each Activity |
| Unloading | 30,450(21500+5200+3750) | 54,000(135,000*40%) | 84450 | |
| Counting | 33,750(135,000*25%) | 33,750 | ||
| Inspecting | 4,750(3250+1500) | 47,250(135,000*35%) | 52,000 | |
| Total Costs | 30,450 | 4,750 | 135,000(45,000*3) | 170,200 |
Add Answer to:
Assigning Costs to Activities, Resource Drivers
The Receiving Department has three activities: unloading,
counting goods, and...
37. The receiving department of Owen has three activities: unloading, counting goods, and inspecting. Unloading requires...
37. The receiving department of Owen has three activities: unloading, counting goods, and inspecting. Unloading requires a forklift that is leased for $15,000 per year. The forklift is used only for unloading. The fuel cost for the forklift is $2,000 per year. Inspection requires special testing equipment that has a depreciation of $500 per year and an operating cost of $1,000 per year. Receiving has four employees who each have an average salary of $35,000 per year. The work distribution...
Oxley Machining Company has identified the following overhead activities, cost, and activity drivers for the coming...
Oxley Machining Company has identified the following overhead activities, cost, and activity drivers for the coming year Expected Cost Acti Activity Capacity Activity Setting u Inspecting Grindin Receiving Number of setups 300 $45,000 Inspection hours 4,500 Machine hours 18,000 Number of parts 50,000 The company produces several different machine widgets used by other manufacturers. Information on separate batches for two of these widgets are: Widget A $850 $600 100 Widget B $950 $600 50 Direct materials Direct labour Units completed...
EEl uses ABC to determine the unit costs of its products. The firm uses resource consumption...
EEl uses ABC to determine the unit costs of its products. The firm uses resource consumption cost drivers based on rough estimates of the amount that each activity consumes, as shown below. EEI has four activities: job setup, assembly, inspecting and finishing, and packaging Setup Assembly 603 Inspecting and Finishing 156 Packaging Salaries Supplies Factory expense Total 1000 100 100 The activity cost drivers for the two products are summarized below. Activities Setup Assembly Inspect and finishing Packaging Activity Driver...
Silven Company has identified the following overhead activities, costs, and activity drivers for the coming year:...
Silven Company has identified the following overhead activities, costs, and activity drivers for the coming year: Activity Expected Cost Activity Driver Activity Capacity Setting up equipment $141,000 Number of setups 120 Ordering materials 24,000 Number of orders 1,200 Machining 105,000 Machine hours 8,750 Receiving 26,280 Receiving hours 1,095 Silven produces two models of cell phones with the following expected activity demands: Model Y Model X X 4,200 8,400 Units completed Number of setups 80 40 400 800 Number of orders...
AQ Cicleta Manufacturing has four activities: receiving materials, assembly, expediting products, and storing goods. Receiving and...
AQ Cicleta Manufacturing has four activities: receiving materials, assembly, expediting products, and storing goods. Receiving and assembly are necessary activities, expediting and storing goods are unnecessary. The following data pertain to the four activities for the year ending 20xl (actual price per unit of the activity driver is assumed to be equal to the standard price): Activity Activity Driver SO SP Receiving Receiving orders 5,600 28,500 $9 Assembly Labor hours 117,000 142,500 7 Expediting Orders expedited 0 9,500 22 Storing...
Multiple Versus Single Overhead Rates, Activity Drivers Deoro Company has identified the following overhead activities, costs,...
Multiple Versus Single Overhead Rates, Activity Drivers Deoro Company has identified the following overhead activities, costs, and activity drivers for the coming year: Activity Expected Cost Activity Driver Activity Capacity Setting up equipment $468,460 Number of setups 590 Ordering costs 333,000 Number of orders 18,500 Machine costs 908,600 Machine hours 41,300 Receiving 336,000 Receiving hours 9,600 Deoro produces two models of dishwashers with the following expected prime costs and activity demands: Model A Model B Direct materials $577,000 $835,000 Direct...
Big Mike’s, a large hardware store, has gathered data on its overhead activities and associated costs...
Big Mike’s, a large hardware store, has gathered data on its overhead activities and associated costs for the past 10 months. Nizam Sanjay, a member of the controller’s department, believes that overhead activities and costs should be classified into groups that have the same driver. He has decided that unloading incoming goods, counting goods, and inspecting goods can be grouped together as a more general receiving activity, since these three activities are all driven by the number of receiving orders....
Activity-Based Product Costing Roberts Company produces two weed eaters: basic and advanced. The company has four...
Activity-Based Product Costing Roberts Company produces two weed eaters: basic and advanced. The company has four activities: machining, engineering, receiving, and inspection. Information on these activities and their drivers is given below. Basic Advanced Total Units produced 130,000 390,000 — Prime costs $9,880,000 $42,120,000 $52,000,000 Machine hours 130,000 650,000 780,000 Engineering hours 500 4,500 5,000 Receiving orders 500 1,500 2,000 Inspection hours 1,000 2,000 3,000 Overhead costs: Machining $8,580,000 Engineering 3,000,000 Receiving 440,000 Inspecting products 360,000 Required: 1. Calculate the...
Activity-Based Product Costing Roberts Company produces two weed eaters: basic and advanced. The company has four...
Activity-Based Product Costing Roberts Company produces two weed eaters: basic and advanced. The company has four activities: machining, engineering, receiving, and inspection. Information on these activities and their drivers is given below. Basic Advanced Total Units produced 140,000 420,000 ------ Prime costs $9,800,000 $44,520,000 $54,320,000 Machine hours 140,000 700,000 840,000 Engineering hours 400 3,600 4,000 Receiving orders 400 1,200 1,600 Inspection hours ...
Activity-Based Product Costing Roberts Company produces two weed eaters: basic and advanced. The company has four...
Activity-Based Product Costing Roberts Company produces two weed eaters: basic and advanced. The company has four activities: machining, engineering, receiving, and inspection. Information on these activities and their drivers is given below. Basic Advanced Total Units produced 90,000 270,000 — Prime costs $6,480,000 $30,240,000 $36,720,000 Machine hours 90,000 450,000 540,000 Engineering hours 400 3,600 4,000 Receiving orders 500 1,500 2,000 Inspection hours ...
Oxley Machining Company has identified the following overhead activities, cost, and activity drivers for the coming year Expected Cost Acti Activity Capacity Activity Setting u Inspecting Grindin Receiving Number of setups 300 $45,000 Inspection hours 4,500 Machine hours 18,000 Number of parts 50,000 The company produces several different machine widgets used by other manufacturers. Information on separate batches for two of these widgets are: Widget A $850 $600 100 Widget B $950 $600 50 Direct materials Direct labour Units completed...
EEl uses ABC to determine the unit costs of its products. The firm uses resource consumption cost drivers based on rough estimates of the amount that each activity consumes, as shown below. EEI has four activities: job setup, assembly, inspecting and finishing, and packaging Setup Assembly 603 Inspecting and Finishing 156 Packaging Salaries Supplies Factory expense Total 1000 100 100 The activity cost drivers for the two products are summarized below. Activities Setup Assembly Inspect and finishing Packaging Activity Driver...
Silven Company has identified the following overhead activities, costs, and activity drivers for the coming year: Activity Expected Cost Activity Driver Activity Capacity Setting up equipment $141,000 Number of setups 120 Ordering materials 24,000 Number of orders 1,200 Machining 105,000 Machine hours 8,750 Receiving 26,280 Receiving hours 1,095 Silven produces two models of cell phones with the following expected activity demands: Model Y Model X X 4,200 8,400 Units completed Number of setups 80 40 400 800 Number of orders...
AQ Cicleta Manufacturing has four activities: receiving materials, assembly, expediting products, and storing goods. Receiving and assembly are necessary activities, expediting and storing goods are unnecessary. The following data pertain to the four activities for the year ending 20xl (actual price per unit of the activity driver is assumed to be equal to the standard price): Activity Activity Driver SO SP Receiving Receiving orders 5,600 28,500 $9 Assembly Labor hours 117,000 142,500 7 Expediting Orders expedited 0 9,500 22 Storing...
Most questions answered within 3 hours.
-
If the K b of a weak base is 6.3 × 10 − 6 , what...
asked 3 minutes ago -
Which of the following is the minimum amount of moles of NaOH
that must be added...
asked 6 minutes ago -
Stories about organizational ________ provide important clues
about cultural values and norms.
a. myths
b. heroes...
asked 8 minutes ago -
Explain the criteria used in selecting a target market
BUS220 Retail Management, thank you!
asked 10 minutes ago -
Convert/Calculate the following:
Determine the identity of an elemental gas if 4.55 L weighing
35.4g, under...
asked 13 minutes ago -
Consider the equilibrium C(s)+ CO2(g) ⇌2 CO(g)
A 2.0 L flask contains a mixture of 0.10...
asked 12 minutes ago -
MATLAB
Part 1 – randFloatValue.m This function accepts two numbers,
lower and upper, and returns a...
asked 18 minutes ago -
You have been asked to hide prizes around your house for your
3-year old nephew. His...
asked 19 minutes ago -
Ammonia will decompose into nitrogen and hydrogen at high
temperature. An industrial chemist studying this reaction...
asked 26 minutes ago -
10. Complete the table below
only using hexadecimal numbers:
AL CODE
EBX
EAX
[EAX]
mov eax,...
asked 44 minutes ago -
trust is best established through the combination of ------and
------- .
1. magnanimity and justice
2....
asked 58 minutes ago -
Blood pressure is normally taken on the upper arm at the level
of the heart. Suppose,...
asked 57 minutes ago