Data concerning three of Kilmon Corporation’s activity cost pools appear below: Activity Cost Pools Estimated Overhead Cost Expected Activity Assembling products $ 86,070 4,530 assembly hours Designing products $ 605,412 3,012 product design hours Setting up batches $ 48,140 830 batch set-ups Required: Compute the activity rates for each of the three cost pools.
Q: Proof of Cash Problems 1. Lazer Company had the following bank reconciliation on June 30: Balance…
A: Disclaimer : Hello. Since your question has multiple sub-parts, we will solve the first three…
Q: o other customers without the support service for £700,000 and has other service contracts providing…
A: Revenue refers to the sum value of money gained by an entity through selling its products to the…
Q: Directions: Record the following transactions in the appropriate journals. Lloyd Gurango Co.…
A: Every Company shall Record it's Financial Transaction in a proper Format. The first Stage of…
Q: 1.Entity F acquired three patents in Jan 2021. The patents have different lives as indicated in the…
A: Amortization - Intangible asset costs are spread out across the shorter of their useful life and…
Q: Test your understanding 1 The following trial balance has been extracted from the books of Arran as…
A: According to the given question, we are required to prepare a statement of profit or loss &…
Q: Salvador Manufacturing builds and sells snowboards, skis and poles. The sales price and variable…
A: Introduction: The break-even point is the point during which total cost and total revenue are equal,…
Q: Identify and provide examples of controls related to the use of files and data.
A: INTRODUCTION Data control is the administration of information policy for the data of an…
Q: Retained earnings at the beginning of the year is $100,000. Total assets are $400,000. Liabilities…
A: The retained earnings of the business include the Accumulated profits for the different years. The…
Q: Saratoga Systems produces a single product. The production process requires all material to be…
A: Saratoga Systems produces a single identical product. However, due to high cost only a few units are…
Q: Tanner and Teresa share income and losses in a 2:1 ratio (2/3 to Tanner and 1/3 to Teresa) after…
A: The partnership comes into existence when two or more persons agree to do the business and further…
Q: nts) On April 1 each year, TAEL Co. receives interest on a $161,000, 6%, 6 year note receivable. On…
A: Interest revenue is the interest earned on the note receivable issued. While calculating interest…
Q: Chart of Accounts Common Stock Retained Earnings Dividends Cash Accounts Receivable Supplies Prepaid…
A: Journal Entries is the Process of Recording all Financial Transaction into a proper Format. Journal…
Q: Using the figures below, please construct an (a) income statement and (b) balance sheet for the…
A: Introduction An income statement represents financial performance of the business for a particular…
Q: 1. A 20-year annuity immediate pays 2000 for the first year. In each subsequent year, cach payment…
A: As per the honor code, We’ll answer the first question since the exact one wasn’t specified. Please…
Q: In grouping expenses for planning and control purposes, what is the difference between grouping by…
A: For planning and control purposes it is important to categorize cost into cost centers.
Q: Puget World, Incorporated, manufactures two models of television sets, the N 800 XL model and the N…
A: Introduction: Overhead costs are ongoing business expenses that aren't directly connected to…
Q: TJ Company produces and sells four flavors of jelly: grape, strawberry, peach, and apricot.…
A: Selling price per jar for Strawberry = $57 Variable cost per jar for Strawberry = $31 Contribution…
Q: Entries for Issuing Bonds and Amortizing Premium by Straight-Line Method Favreau Corporation…
A: The journal entries are prepared to keep the record of day to day transactions of the business. The…
Q: On 1 January 2019, Casio Ltd issued 2,000 4% £100 convertible bonds. Each bond is redeemable in…
A: Lets understand the basics. When any bond is convertible into equity shares then bond is having two…
Q: Question 10.4 Big Machines Corp. has two divisions. Division Y manufactures components that can be…
A: Introduction: The rate of return (RoR) is used to calculate the profit or loss of an investment over…
Q: Question 8: The accounts of several online customers of a small state bank were hacked and their…
A: The correct answer is option - Crisis Prevention
Q: A new barcode reading device has an installed cost basis of $22,820 and an estimated service life of…
A: Hi student Since there are multiple subparts, we will answer only first three subparts. Depreciation…
Q: Safety Works manufacturers safety whistle keychains. They have the following information available…
A: Total cost of direct materials for October = 90% of October months production + 10% of November…
Q: a. Pearl receives C8,000.00 monthly salary, doesn't want to deal with bank bureaucracy so
A: INTRODUCTION According to the inventory-theoretical approach outlined in the Baumol-Tobin Model, a…
Q: Celtic Company reported the following January purchases and sales data for its only product. The…
A: Lets understand the basics. In last in first out (LIFO) method company assumes that, goods purchased…
Q: A company that manufactures and sells a single product. Unit sales for each of the four quarters of…
A: Net Income=Sales-Total CostsProfit margin=Net IncomeSales×100
Q: wrong. Please check it again. Than
A: Free cash flows refer to the cash value a company takes into consideration after creating a base…
Q: The following transactions relate to the business of Jacob’s Coffee Shop for the month of February…
A: Accrual basis of accounting - Under this basis the transaction is recorded in the books of account…
Q: bints) On December 31, 2021, RTQ, Inc. reports an ending balance of $2,435,000 for Accounts…
A: Since it lowers the value of an asset—in this case, the accounts receivable—the allowance for bad…
Q: Create a statement of cash flow for the current year using Wright Co's income statement and balance…
A: Solution Cash flow statement is the financial statement that provides aggregate data about all cash…
Q: Provide the missing data for the following situations: Red Division White…
A: The ratio analysis helps to analyse the financial statements of the business on the basis of various…
Q: LO1-1 Match each element with its financial statement by entering the appropriate letter in the…
A: Lets understand the basics. Balance sheet is a statement which shows asset and liabilities of the…
Q: Division A has the capacity to produce 120,000 units. The normal selling price of each unit is P80.…
A: Lets understand the basics. Transfer price is a price at which input of one division gets…
Q: Glew Corporation has provided the following information: Variable manufacturing overhead Fixed…
A: The cost can we classified into two categories i.e product cost and period cost. The product cost is…
Q: Maple Enterprises sells a single product with a selling price of $71 and variable costs per unit of…
A: Introduction: The breakeven point is the level of sales at which a business loses money exactly.…
Q: Exercise 6-2 (Algo) Service revenue [LO6-3] Ski West, Inc., operates a downhill ski area near Lake…
A: Along with the matching principle, the revenue recognition concept serves as the foundation of…
Q: $857
A: B)$857 Assume the company has a corporate tax rate of 30%. The Bradley holds 250 shares in…
Q: A local bank began charging $4.80 each month for returning canceled checks. The bank also has an…
A: The question is based on the concept of Bank Reconciliation Statement. Bank Reconciliation Statement…
Q: hares that have a front-end load of 5.25 percent, a 12b-1 fee of .33 percent, and other fees of 1.03…
A: The rate of return refers to the expected cash inflows out of an investment in the near future on…
Q: ● ● ● BASIC PRINCIPLES OF A SOUND TAX SYSTEM Fiscal Adequacy - sources of revenue should be…
A: Answer:- Tax meaning:- Taxes are compulsory payments made by a government organization, whether…
Q: Please provide the following formulas: 1. The Fundamental Accounting Equation 2. The Formula for…
A: Accounting equation refers to the basic or the fundamentals of the accounting as it helps in forming…
Q: ABC Corporation sold 1,200 units for the month at an average selling price of P5,000. Its target…
A: Total sales variance refers to the difference between actual sales and standard sales . If actual…
Q: The accountant at Terry Farm Stores prepares a monthly bank reconciliation. On 31 August she…
A: Ideally cash balance as per cashbook and bank balance as per bank statement must reconcile with each…
Q: (v) Mr. Ravi, Guwahati is an employee of Govt. of Assam. His particulars of income for the previous…
A: Professional tax is the tax levied on the service provided to the employer or client. Any amount of…
Q: Multiple Choice From the Navigation Bar, select Reports From the (+) New icon, select transaction to…
A: QBO :— QBO is an accounting Software. Where all Transactions are Recorded in Electronic Formate.…
Q: Blupa Ltd acquired a 25% interest in Trinity Ltd for $145,000 on 1 July 2020. At that date,…
A: Journal - A journal is a thorough account that documents all of a company's financial activities. It…
Q: please explain why the option is correct and remainings are incorrec
A: The major source of revenue for the government is taxes, fines, penalties etc. Accrual basis of…
Q: An industrial plant bought a generator set for P90,000. Other expenses including installation…
A: Depreciation - A business entity possesses a variety of resources that help the firm run. A…
Q: A manufacturing company prepays its insurance coverage for a three-year period. The premium for the…
A: Lets understand the basics. Product cost is a cost incur for producing goods or providing services.…
Q: rating loss deduction). (Leave no answer blank. Enter zero if applicable.)…
A: Every business is formed to earn profits. There may be some times that the business may incur a…
Data concerning three of Kilmon Corporation’s activity cost pools appear below:
Activity Cost Pools | Estimated Overhead Cost | Expected Activity | |
---|---|---|---|
Assembling products | $ 86,070 | 4,530 | assembly hours |
Designing products | $ 605,412 | 3,012 | product design hours |
Setting up batches | $ 48,140 | 830 | batch set-ups |
Required:
Compute the activity rates for each of the three cost pools.
Step by step
Solved in 3 steps
- The cost behavior patterns below are lettered A through H. The vertical axes of the graphs represent total dollars of expense, and the horizontal axes represent production in units, machine hours, or direct labor hours. In each case, the zero point is at the intersection of the two axes. Each graph may be used no more than once. Required: Select the graph that matches the lettered cost described here. a. Depreciation of equipmentthe amount of depreciation charged is computed based on the number of machine hours that the equipment was operated. b. Electricity billflat fixed charge, plus a variable cost after a certain number of kilowatt hours are used. c. City water billcomputed as follows: d. Depreciation of equipmentthe amount is computed by the straight-line method. e. Rent on a factory building donated by the citythe agreement calls for a fixed fee payment, unless 200,000 labor hours are worked, in which case no rent need be paid. f. Salaries of repair workersone repair worker is needed for every 1,000 machine hours or less (i.e., 0 to 1,000 hours requires one repair worker, 1,001 to 2,000 hours requires two repair workers, etc.).Ayala Inc. has conducted the following analysis related to its product lines, using a traditional costing system (volume-based) and an activity-based costing system. Both the traditional and the activity-based costing systems include direct materials and direct labor costs. Products Product 540X Product 137Y Product 2495 Sales Revenue $208,000 155,000 92.000 Total Costs Traditional $54,000 48,000 23.000 ABC $49,000 30,000 46,000Smoky Mountain Corporation makes two types of hiking boots-the Xtreme and the Pathfinder. Data concerning these two product lines appear below: Xtreme $ 121.00 $ 64.70 $ 10.80 Pathfinder Selling price per unit Direct materials per unit Direct labor per unit Direct labor-hours per unit Estimated annual production and sales $ 88.00 $ 54.00 %24 9.00 1.0 DLHS 71,000 units 1.2 DLHS 25, 000 units The company has a traditional costing system in which manufacturing overhead is applied to units based on direct labor-hours. Data concerning manufacturing overhead and direct labor-hours for the upcoming year appear below: Estimated total manufacturing overhead Estimated total direct labor-hours $ 2,020,000 101,000 DLH5 Required: 1. Compute the product margins for the Xtreme and the Pathfinder products under the company's traditional costing system. 2. The company is considering replacing its traditional costing system with an activity-based costing system that would assign its manufacturing…
- 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: Units produced per year Prime costs Direct labor hours Machine hours Production runs Inspection hours Maintenance hours Overhead costs: Setup costs Inspection costs Machining Maintenance Total Model A 10,000 $153,000 144,000 17,000 30 900 9,000 $216,000 220,000 172,000 300,000 $908,000 Product Data Model B 100,000 $1,530,000 310,000 204,000 60 1,300 91,000The graphs below represent cost behavior patterns that might occur in a company’s cost structure. The vertical axis represents total cost, and the horizontal axis represents activity output Required:For each of the following situations, choose the graph from the group a–1 that best illustrates the cost pattern involved. Also, for each situation, identify the driver that measures activity output.1. The cost of power when a fixed fee of $500 per month is charged plus an additional charge of $0.12 per kilowatt-hour used.2. Commissions paid to sales representatives. Commissions are paid at the rate of 5 percent of sales made up to total annual sales of $500,000, and 7 percent of sales above $500,000.3. A part purchased from an outside supplier costs $12 per part for the first 3,000 parts and $10 per part for all parts purchased in excess of 3,000 units.4. The cost of surgical gloves, which are purchased in increments of 100 units (gloves come in boxes of 100 pairs).5. The cost of tuition…A company makes a product R. which requires one each of two first-level components, 5 and T. Routing data for these items are as follows tem Operation No. Dept Work Center Run Time Per unit Setup Time Average Lot size No. No. Std hours) Std hours) R 10 12 0.80 1.50 20 10 12 16 0.50 0.60 40 20 14 1.20 2.00 40 10 16 1.00 0.40 40 20 14 0.30 1.20 40 (a) The Bill of Capacity for product R (in standard hours) at work center 12 is closest to:
- 1. Logo Inc. has two data services departments (Systems and Facilities) that provide support to the company's three production departments (Machining, Assembly, and Finishing). The overhead costs of the Systems Department are allocated to other departments on the basis of computer usage hours. The overhead costs of the Facilities Department are allocated based on square feet occupied (in thousands). Other information pertaining to Logo is as follows. Department Overhead Computer Usage Hours Square Feet Occupied Systems Facilities $200,000 300 1,000 100,000 900 600 Machining Assembly Finishing Totals 400,000 3,600 2,000 550,000 1,800 3,000 620,000 2,700 5,000 9,300 11,600Doaktown Products manufactures fishing equipment for recreational uses. The Miramichi plant produces the company's two versions of a special reel used for river fishing. The two models are the M-008, a basic reel, and the M-123, a new and improved version. Cost accountants at company headquarters have prepared costs for the two reels for the most recent period. The plant manager is concerned. The cost report does not coincide with her intuition about the relative costs of the two models. She has asked you to review the cost accounting and help her prepare a response to headquarters. Manufacturing overhead is currently assigned to products based on their direct labor costs. For the most recent month, manufacturing overhead was $334,400. During that time, the company produced 14,900 units of the M-008 and 2,400 units of the M-123. The direct costs of production were as follows. М-008 М-123 Total Direct materials $119,200 $ 96,000 48,000 $215,200 Direct labor 119,200 167,200 Management…Precision Manufacturing Inc. (PMI) makes two types of industrial component parts-the EX300 and the TX500. It annually produces 69,000 units of EX300 and 13,400 units of TX500. The company's conventional cost system allocates manufacturing overhead to products using a plantwide overhead rate and direct labor dollars as the allocation base. Additional information relating to the company's two product lines is shown below: EX300 $375,325 $129,000 Total $546,875 $176,000 TX500 Direct materials Direct labor $171,550 $ 47,000 The company is considering implementing an activity-based costing system that distributes all of its manufacturing overhead to four activities as shown below: Activity Manufacturing Overhead $182,600 249,900 187,070 84,460 $704,000 Activity Cost Pool (and Activity Measure) Machining (machine-hours) Setups (setup hours) Product-level (number of products) General factory (direct labor dollars) EX300 99,000 120 1 TX500 67,000 390 1 Total 166,000 510 2 $129,000 $47,000…
- Info in images Required: 1. Compute the product margins for the B300 and T500 under the company’s traditional costing system. 2. Compute the product margins for B300 and T500 under the activity-based costing system. 3. Prepare a quantitative comparison of the traditional and activity-based cost assignments. 1. Compute the product margins for the B300 and T500 under the company’s traditional costing system. (Round your intermediate calculations to 2 decimal places and final answers to the nearest whole dollar amount.) B300 T500 Total Product margin $0 2. Compute the product margins for B300 and T500 under the activity-based costing system. (Negative product margins should be indicated by a minus sign. Round your intermediate calculations to 2 decimal places.) B300 T500 Total Product margin $0 3. Prepare a quantitative comparison of the traditional and activity-based cost assignments. (Round your intermediate calculations to 2…Title Brahtz Company uses an activity-based costing system. It has the following manufacturing activity ar Description Brahtz Company uses an activity-based costing system. It has the following manufacturing activity areas, related cost drivers and cost allocation rates:ActivityCost DriverCost Allocation RateMachine setupNumber of setups$25.00Materials handlingNumber of parts0.25MachiningMachine hours13.00AssemblyDirect labor hours22.00InspectionNumber of finished units7.00During the month, 100 units were produced, with no defects, requiring three setups. Each unit consisted of 17 parts, 3 direct labor hours and 2.5 machine hours. Direct materials cost $50 per finished unit.What is the total manufacturing cost for inspections?$-0-$700$90$7Using data for Vicente, compute the total manufacturing overhead for P1, allocating service department costs stepwise, beginning with department S2. After a department expenses have been allocated, no expenses are assigned back to it.