Homework Answers
Traditional method
| Particular | cost | Mountain brush | Wicked water | Traditional |
| Raw ingredient | 55,000 | 709 x 23.88 = 16,931 | 705 x 23.88 = 16,835 | 680 x 23.88 = 16,238 |
| Barrel setup | 24,700 | 709 x 11.80 = 8,366 | 705 x 11.80 = 8,319 | 680 x 11.80 = 8,024 |
| Quality inspection | 10,000 | 709 x 4.78 = 3,389 | 705 x 4.78 = 3,370 | 680 x 4.78 = 3,250 |
| Packing | 15,000 | 709 x 7.16 = 5,076 | 705 x 7.16 = 5,048 | 680 x 7.16 = 4,869 |
| Total | 33,762 | 33,572 | 32,381 |
Activity based costing method
| Particular | Cost | Mountain brush | Wicked water | Traditional |
| Raw ingredient | 55,000 | 480 x 36.36 = 17,453 | 465 x 36.36 = 16,907 | 430 x 36.36 = 15,635 |
| Barrel setup | 24,700 | 45 x 190 = 8,550 | 45 x 190 = 8,550 | 40 x 190 = 7,600 |
| Quality inspection | 10,000 | 30 x 125 = 3,750 | 26 × 125 = 3,250 | 24 x 125 = 3,000 |
| Packing | 15,000 | 150 x 37.5 = 5,625 | 140 x 37.5 = 5,250 | 110 x 37.5 = 4,125 |
| Total | 35,378 | 33,957 | 30,360 |
Add Answer to:
Starlight is considering using an activity-based costing method for assigning overhead. Management has accumulated the following...
7. Ryan Corporation has provided the following data from its activity-based costing system: Activity Cost Pool...
7. Ryan Corporation has provided the following data from its activity-based costing system: Activity Cost Pool Total Cost Total Activity Assembly..... $698,950 35,000 machine-hours Processing orders ....... $85,101 1,900 orders Inspection ......... $107,440 1,580 inspection-hours Data concerning the company's product P58Z appear below: Annual unit production and sales...... 400 Annual machine-hours...... 1,000 Annual number of orders. 90 Annual inspection hours.......... 30 Direct materials cost ........ $34.78 per unit Direct labor cost... $23.52 per unit According to the activity-based costing system,...
41. Activity-Based Costing Versus Traditional Approach, Activity-Based Management. Fine Finishing, Inc, produces a wood desk that...
41. Activity-Based Costing Versus Traditional Approach, Activity-Based Management. Fine Finishing, Inc, produces a wood desk that sells for $500 and a wood table that sells for $900. Last year, total overhead costs of $6,000,000 were allocated based on direct labor costs. Direct labor costs totaled $2,000,000 last year, and the company produced 15,000 desks and 5,000 tables. Total direct labor and direct materials costs by product for last year were as follows: Desk Table Direct materials $1,575,000 $950,000 Direct labor...
Mastery Problem: Activity-Based Costing (Advanced) Activity-Based Costing Traditionally, Overhead cost: Sometimes referred to as "factory overhead,"...
Mastery Problem: Activity-Based Costing (Advanced) Activity-Based Costing Traditionally, Overhead cost: Sometimes referred to as "factory overhead," this is an indirect cost that is not directly tied to the production of units, yet nonetheless must be built into product cost in order to appropriately price it. Examples are managerial salaries, rent expense, setup costs, and property taxes.overhead costs are assigned based arbitrarily on the rate of either Direct labor: This is a labor cost directly associated with the production of goods...
PA4-2 (Algo) Assigning Costs Using Traditional System, Assigning Costs Using Activity Proportions (LO 4-1, 4-3, 4-5,...
PA4-2 (Algo) Assigning Costs Using Traditional System, Assigning Costs Using Activity Proportions (LO 4-1, 4-3, 4-5, 4-6) Carlise Corp., which manufactures ceiling fans, currently has two product lines, the Indoor and the Outdoor. Carlise has total overhead of $133,472 Carlise has identified the following information about its overhead activity cost pools and the two product lines: Cost Quantity/Amount Quantity/Amount Assigned consumed by Indoor Consumed by Outdoor Activity Cost Pools Cost Driver to Pool Line Line Materials handling Number of moves...
The Mega Construction Company recently switched to activity based costing (ABC) from the department allocation method....
The Mega Construction Company recently switched to activity based costing (ABC) from the department allocation method. The department method allocated overhead costs at a rate of $60 per machine hour The cost accountant for the Finishing Department has gathered the following data Amount $ 95 Activity Matenal handling Mochine Setups tes Quality Control Cost Drivers Tons of material Handled Number of production runs Machine Hours Number of inspections 2500 thing Department groductions using a total of 15.000 machine hours in...
c. assigns activity cost pools to products and services, then allocates overhead back to the activity...
c. assigns activity cost pools to products and services, then allocates overhead back to the activity cost pools. d. allocates overhead directly to products and services based on activity levels e. none of these answers are correct. 21. Which of the following has the weakest linkage between activity and cost driver? Activity Machine setup Machine maintenance Lighting on shop floor Quality control Manual cloth making Cost Driver Number of setups Book value of machines Number of kilowatt-bours Square feet of...
Recently, MAKS Corp. switched to activity-based costing (ABC) from the department allocation method, where the company...
Recently, MAKS Corp. switched to activity-based costing (ABC) from the department allocation method, where the company allocated overhead costs at a rate of $70 per machine hour. The company reported the following data for its Finishing Department: Activity Material handling Machine setups Utilities Quality control Cost Drivers Tons of material handled Number of production runs Machine hours Number of inspections Amount $ 90 3,600 30 400 During May, the company purchased and used $135,000 of direct materials at $25 per...
The Mega Construction Company recently switched to activity-based costing (ABC) from the department allocation method. The...
The Mega Construction Company recently switched to activity-based costing (ABC) from the department allocation method. The department method allocated overhead costs at a rate of $40 por machine hour. The cost accountar or t h ing Department has gathered the following data: Cost Drivers Tons of material handled Number of production runs Machine hours Number of inspections Amount $ 60 3,650 Material handling Machine setups utilities Quality control 100 During April, Mega purchased and used $135,000 of direct materials at...
Single Plantwide Rate and Activity-Based Costing Whirlpool Corporation conducted an activity-based costing study of its Evansville,...
Single Plantwide Rate and Activity-Based Costing Whirlpool Corporation conducted an activity-based costing study of its Evansville, Indiana, plant in order to identify its most profitable products. Assume that We select three representative refrigerators (out of 333): one low-, one medium-, and one high-volume refrigerator. Additionally, we assume the following activity-base information for each of the three refrigerators: Three Representative Refrigerators Number of Machine Hours Number of Number of Number of Setups Sales Orders Units 100 Refrigerator-Low Volume Refrigerator-Medium Volume 500...
Problem 2 (Supplemental Problem #2) – Activity-based costing versus traditional costing Lovelace Company produces only two...
Problem 2 (Supplemental Problem #2) – Activity-based costing versus traditional costing Lovelace Company produces only two products: reading glasses and sunglasses. The company uses a normal cost system and overhead costs are currently allocated using a plant-wide overhead rate based on direct labor hours. Outside cost consultants have recommended that the company use activity-based costing to charge overhead to products. The company expects to produce 4,000 reading glasses and 8,000 sunglasses this year. Each pair of reading glasses requires two...
7. Ryan Corporation has provided the following data from its activity-based costing system: Activity Cost Pool Total Cost Total Activity Assembly..... $698,950 35,000 machine-hours Processing orders ....... $85,101 1,900 orders Inspection ......... $107,440 1,580 inspection-hours Data concerning the company's product P58Z appear below: Annual unit production and sales...... 400 Annual machine-hours...... 1,000 Annual number of orders. 90 Annual inspection hours.......... 30 Direct materials cost ........ $34.78 per unit Direct labor cost... $23.52 per unit According to the activity-based costing system,...
41. Activity-Based Costing Versus Traditional Approach, Activity-Based Management. Fine Finishing, Inc, produces a wood desk that sells for $500 and a wood table that sells for $900. Last year, total overhead costs of $6,000,000 were allocated based on direct labor costs. Direct labor costs totaled $2,000,000 last year, and the company produced 15,000 desks and 5,000 tables. Total direct labor and direct materials costs by product for last year were as follows: Desk Table Direct materials $1,575,000 $950,000 Direct labor...
PA4-2 (Algo) Assigning Costs Using Traditional System, Assigning Costs Using Activity Proportions (LO 4-1, 4-3, 4-5, 4-6) Carlise Corp., which manufactures ceiling fans, currently has two product lines, the Indoor and the Outdoor. Carlise has total overhead of $133,472 Carlise has identified the following information about its overhead activity cost pools and the two product lines: Cost Quantity/Amount Quantity/Amount Assigned consumed by Indoor Consumed by Outdoor Activity Cost Pools Cost Driver to Pool Line Line Materials handling Number of moves...
The Mega Construction Company recently switched to activity based costing (ABC) from the department allocation method. The department method allocated overhead costs at a rate of $60 per machine hour The cost accountant for the Finishing Department has gathered the following data Amount $ 95 Activity Matenal handling Mochine Setups tes Quality Control Cost Drivers Tons of material Handled Number of production runs Machine Hours Number of inspections 2500 thing Department groductions using a total of 15.000 machine hours in...
c. assigns activity cost pools to products and services, then allocates overhead back to the activity cost pools. d. allocates overhead directly to products and services based on activity levels e. none of these answers are correct. 21. Which of the following has the weakest linkage between activity and cost driver? Activity Machine setup Machine maintenance Lighting on shop floor Quality control Manual cloth making Cost Driver Number of setups Book value of machines Number of kilowatt-bours Square feet of...
Recently, MAKS Corp. switched to activity-based costing (ABC) from the department allocation method, where the company allocated overhead costs at a rate of $70 per machine hour. The company reported the following data for its Finishing Department: Activity Material handling Machine setups Utilities Quality control Cost Drivers Tons of material handled Number of production runs Machine hours Number of inspections Amount $ 90 3,600 30 400 During May, the company purchased and used $135,000 of direct materials at $25 per...
The Mega Construction Company recently switched to activity-based costing (ABC) from the department allocation method. The department method allocated overhead costs at a rate of $40 por machine hour. The cost accountar or t h ing Department has gathered the following data: Cost Drivers Tons of material handled Number of production runs Machine hours Number of inspections Amount $ 60 3,650 Material handling Machine setups utilities Quality control 100 During April, Mega purchased and used $135,000 of direct materials at...
Single Plantwide Rate and Activity-Based Costing Whirlpool Corporation conducted an activity-based costing study of its Evansville, Indiana, plant in order to identify its most profitable products. Assume that We select three representative refrigerators (out of 333): one low-, one medium-, and one high-volume refrigerator. Additionally, we assume the following activity-base information for each of the three refrigerators: Three Representative Refrigerators Number of Machine Hours Number of Number of Number of Setups Sales Orders Units 100 Refrigerator-Low Volume Refrigerator-Medium Volume 500...
Most questions answered within 3 hours.
-
Adria Lopez, owner of Success Systems, decides to prepare a
statement of cash flows for her...
asked 1 minute ago -
The reach and involvement of the federal government, in terms of
its role in disaster relief,...
asked 4 minutes ago -
Problem: The equilibrium constant, Keq, is 5 x 10^-11 m HCO3
<-----------> H^+ + CO3^-2 Calculate...
asked 11 minutes ago -
Explain how blackbody radiation led to the idea of "quanta."
Will rate answer!
asked 17 minutes ago -
Two noble gases (Ne and He) are injected into the chambers of an
insulated container. Each...
asked 11 minutes ago -
Suppose you purchase a zero coupon bond with a face value of
$1,000, maturing in 18...
asked 16 minutes ago -
Do you believe that the $785,000 amount at the center of the
Overstock-Grant Thornton dispute was...
asked 17 minutes ago -
Find and , the mean and standard deviation of the
sampling distribution of :
μ = 25,...
asked 41 minutes ago -
According to the manufacturer of a certain candy, 9% of the
candy produced are red. If...
asked 1 hour ago -
A Eucher Deck consists of 24 cards. In a four- player game, each
player is dealt...
asked 1 hour ago -
This is a challenging question.
The titration of an impure sample of KHP found that 36.00...
asked 1 hour ago -
1. Starting from rest, an automatic subway train is controlled
by a computer
that causes it’s...
asked 41 minutes ago