Calculate the cost allocation base per customer. Compute the appropriate cost drivers for the indirect costs. Find out the service overheads allocation for motor set-
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A: Lets understand the basics. Indirect costs are cost which are not directly related to product or…
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A:
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A: Pre determined overhead rate is used to apply manufacturing overhead cost to Job or process.
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A: Job operations: Job operations mean manufacturing the product or providing the services according…
Q: The overhead absorption rate used to allocate manufacturing overhead is calculated by: Select one:…
A: Since you have posted a question with multiple parts, we will solve first three parts for you. To…
Q: 1.An activity that has a direct cause-effect relationship with the resources consumed is a(n) Group…
A: In activity based costing the cost are apportioned based on the respective cost drivers
Q: The process of assigning overhead costs to the jobs that are worked on is commonly called: a.…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: while doing the overhead summary sheet do we have to use that direct cost?
A: Direct cost means cost of direct material, direct labour and direct expenses that are incurred for…
Q: ement applicable to service operations? If so, provide a hypothetical example of variable costing…
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A: The answer for the multiple choice question and relevant explanation are presented hereunder :…
Q: Compute the overhead rate for each activity
A: Cost Driver Rate(Overhead rate) = Total Cost of Activity / Cost Driver Units
Q: estimate the overhead and find the overhead allocation rate for de
A: 1. Estimation of Overhead and Overhead rate…
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A: Activity-based costing: Activity based costing is the method of costing which is used to assign…
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A: Costing method is a method in which the total cost of the product is calculated.
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A: SOLUTION- ACTIVITY BASED COSTING- IT IS METHOD OF ALLOCATING THE COSTS TO THE ACTIVITIES INVOLVING…
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A: Please find the answer to the above question below:
Q: "Under variable costing system, the unit product cost includes:" "Direct materials, direct…
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A: Traditional method of costing is the method of allocating overheads based on the single cost driver.…
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A: Activity based costing allocates the overhead costs on basis of cost drivers/activity driver
Q: The direct method as used is one method that can be used to re-assign service department cost.…
A: Overhead refers to continuing business expenses that are not directly related to the production of a…
Q: (i) Select a suitable cost driver for each item of overhead expenses and calculate the cost per unit…
A: Activity-based costing is a method in which the cost of the organization is allocated among the…
Q: The overhead absorption rate used to allocate manufacturing overhead is calculated by: Select one:…
A: The manufacturing overhead costs are allocated to the goods on the basis of a predetermined overhead…
Q: Compute the indirect manufacturing costs allocated to each product using activity based costing.
A: Activity based costing is a costing system in which indirect costs or overheads are allocated to…
Q: The overhead absorption rate used to allocate manufacturing overhead is calculated by: Select one:…
A: Total Estimated Manufacturing Overheads Overhead…
Q: Which of the following is the correct formula to compute the predetermined overhead rate?…
A: Predetermined overhead rate: Predetermined overhead rate is calculated befor the period begins. This…
Q: Please briefly describe (1) the three main differences between the traditional overhead allocation…
A: Overhead refers to the number of indirect expenses incurred during the production of products in the…
Q: An activity is: Mutiple Choice a type of duration driver used in activitybased costing systems. en…
A: Solution: An activity is "a bucket in which costs are accumulated in Activity based costing system".…
Q: Under variable costing, a unit of product includes which costs? A. direct material, direct labor,…
A: Variable costing: In the process of variable costing the fixed manufacturing overhead are not to be…
Q: In activity-based costing, the activity rate for an activity cost pool is computed by dividing the…
A: Activity-based costing method Identifies activities in an organization and assign cost to…
Q: Which of the following is the correct formula to compute the predetermined overhead rate? a.…
A: Predetermined overhead rate is calculated before the period begins therefore it is based on…
Q: What is the overhead cost per product, under traditional costing? Predetermined Overhead Rate =…
A: Tri-Bikes Traditional Costing: Predetermined overhead = Estimated total overhead / Estimated total…
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Calculate the cost allocation base per customer. |
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- Via Gelato is a popular neighborhood gelato shop. The company has provided the following cost formulas and actual results for the month of June: Revenue Raw materials Wages Utilities Rent Insurance Miscellaneous Revenue Expenses: Raw materials Fixed Element per Month Wages Utilities Rent $ 7,300 $ 3,330 $ 4,300 $3,050 $ 820 Insurance Miscellaneous Variable Element per Actual Total for June $ 175,540 While gelato is sold by the cone or cup, the shop measures its activity in terms of the total number of liters of gelato sold. For example, wages should be $7,300 plus $3.10 per liter of gelato sold and the actual wages for June were $26,400. Via Gelato expected to sell 6,100 liters in June, but actually sold 6,300 liters. Via Gelato Revenue and Spending Variances For the Month Ended June 30 U Total expense Net operating income Liter $29.00 $6.35 $ 3.10 $ 1.90 Required: Calculate Via Gelato revenue and spending variances for June. (Indicate the effect of each variance by selecting "F" for…Via Gelato is a popular neighborhood gelato shop. The company has provided the following cost formulas and actual results for the month of June: Revenue Raw materials Wages Utilities Rent Insurance Miscellaneous Revenue Expenses: Fixed Element per Month Raw materials $6,500 $ 2,530 $ 3,500 $ 2,250 $ 740 While gelato is sold by the cone or cup, the shop measures its activity in terms of the total number of liters of gelato sold. For example, wages should be $6,500 plus $2.30 per liter of gelato sold and the actual wages for June were $21,300. Via Gelato expected to sell 6,400 liters in June, but actually sold 6,600 liters. Via Gelato Revenue and Spending Variances For the Month Ended June 30 Wages Utilities Rent Insurance Miscellaneous Variable Element per Liter $ 21.00 $ 5.55 $ 2.30 $ 1.10 Required: Calculate Via Gelato revenue and spending variances for June. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero…Via Gelato is a popular neighborhood gelato shop. The company has provided the following cost formulas and actual results for the month of June: Revenue Raw materials Wages Utilities Rent Insurance Miscellaneous Revenue Expenses: Fixed Element per Month Raw materials $ 5,900 $ 1,930 $ 2,900 $1,650 $ 680 While gelato is sold by the cone or cup, the shop measures its activity in terms of the total number of liters of gelato sold. For example, wages should be $5,900 plus $1.70 per liter of gelato sold and the actual wages for June were $15,900. Via Gelato expected to sell 6,000 liters in June, but actually sold 6,200 liters. Wages Utilities Rent Insurance Miscellaneous Variable for June Element per Actual Total Liter $15.00 $4.95 $ 1.70 $ 0.50 Required: Calculate Via Gelato revenue and spending variances for June. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)…
- Via Gelato is a popular neighborhood gelato shop. The company has provided the following cost formulas and actual results for the month of June: Revenue Raw materials Mages Utilities Rent Insurance Miscellaneous $ 1.35 While gelato is sold by the cone or cup, the shop measures its activity in terms of the total number of liters of gelato sold. For example, wages should be $6,600 plus $2.40 per liter of gelato sold and the actual wages for June were $21,000. Via Gelato expected to sell 6,000 liters in June, but actually sold 6,200 liters. Revenue Expenses Fixed Variable Element Element per Month per Liter $ 22.00 $5.65 $2.40 $ 1.20 Required: Calculate Via Gelato revenue and spending variances for June. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) Via Gelato Revenue and Spending Variances For the Month Ended June 30 Raw materials $ 6,600 $ 2,630 $ 3,600 $…Via Gelato is a popular neighborhood gelato shop. The company has provided the following cost formulas and actual results for the month of June: Revenue Raw materials Wages Utilities Rent Insurance Miscellaneous Revenue Expenses: While gelato is sold by the cone or cup, the shop measures its activity in terms of the total number of liters of gelato sold. For example, ages should be $6,500 plus $2.30 per liter of gelato sold and the actual wages for June were $21,300. Via Gelato expected to sell 6,400 liters in June, but actually sold 6,600 liters. Raw materials Fixed Element per Month Required: Calculate Via Gelato revenue and spending variances for June. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) Wages Utilities Rent $ 6,500 $ 2,530 $ 3,500 $ 2,250 $ 740 Answer is complete but not entirely correct. Via Gelato Revenue and Spending Variances For the…3B Corporation makes different types of hubcaps for cars. The company accumulates volumes of metal edges as scrap. At least once a month, the scrap metal is sold to a local manufacturer for further processing. This month's scrap sales on account total P14,000.00. The company is using actual cost system. 10: Required: Prepare the appropriate journal entry to record the sale of the scrap for each of the following alternatives: 1 Scrap sale is viewed as additional revenue 2. Scrap sale is viewed as reduction of cost of goods sold 3. When scrap materials are traceable as indirect materials 4. When scrap materials are traceable as direct materials
- Stefan Ceramics is in the business of selling ceramic vases. It has two departments – molding and finishing. Molding department purchases tungsten carbide and produces ceramic vases out of it. Ceramic Vases are then transferred to finishing department, which designs it as per the requirement of the customers. During the month of July, molding department purchased 720 kgs of tungsten carbide at $280 per kg. It started manufacture of 4200 vases and completed and transferred 3200 vases during the month. It has 1000 vases in the process at the end of the month. It incurred direct labor charges of $1900 and other manufacturing costs of $500, which included electricity costs of $900. Stefan had no inventory of tungsten carbide at the end of the month. It also had no beginning inventory of vases. The ending inventory was 45% complete in respect of conversion costs. Required: What is the cost of tungsten carbide that will be assigned to vases finished and transferred to the finishing…Java Joe’s operates a chain of coffee shops. The company pays rent of $12,000 per year for each shop. Supplies (napkins, bags and condiments) are purchased as needed. The manager of each shop is paid a salary of $2,000 per month, and all other employees are paid on an hourly basis. Relative to the number of customers for a shop, the cost of rent is which kind of cost? cFixed cost Variable cost Mixed cost Relevant costMarwick’s Pianos, Inc., purchases pianos from a large manufacturer and sells them at the retail level. Thepianos cost, on the average, $2,450 each from the manufacturer. Marwick’s Pianos, Inc., sells the pianosto its customers at an average price of $3,125 each. The selling and administrative costs that the companyincurs in a typical month are presented below:Costs Cost FormulaSelling:Advertising ................................................ $700 per monthSales salaries and commissions .............. $950 per month, plus 8% of salesDelivery of pianos to customers ............... $30 per piano soldUtilities ...................................................... $350 per monthDepreciation of sales facilities .................. $800 per monthAdministrative:Executive salaries .................................... $2,500 per monthInsurance .................................................. $400 per monthClerical ..................................................... $1,000 per month, plus…
- A small shop in Bulacan fabricates portable threshers for palay producers in the locality. The shop can produce each thresher at a labor cost of P1,800. The cost of materials for each unit is P2,500. The variable costs amount to P650 per unit, while fixed charges incurred per annum totals P69,000. If the portable threshers are sold at P7,800 per unit, how many units must beproduced and sold per annum to break-even? Support your answer with computations and also by graphical solution. (Kindly provide a COMPLETE and CLEAR solution. Also, write legibly)Duncan and Oates provides hair-cutting services in the local community. In February, the business cut the hair of 250 clients, earned $5,300 in revenues, and incurred the following operating c (Click the icon to view the operating costs.) What was the cost of service to provide one haircut? Select the formula labels, then enter the amounts and compute the cost of service of providing one haircut. (Round your answer to the nearest cent.) Unit haircut cost Data table Hair Supplies Expense Wages Expense Utilities Expense Depreciation Expense-Equipment Print Done $ 650 1,550 145 30 XA customer ordered a window frame. In doing the job, it requires iron bars with a total worth of ₱4,000. Two employees are assigned for the job and each of them will work 8 hours. The hourly rate of the employees is ₱75.00. The pre-determined overhead rate (POHR) is ₱100 that is based on the total working hours of the employees. The cost of the window frame would be? a. ₱6,000 b. ₱6,800 c. ₱4,175 d. ₱5,400