Carbon Company provides the following information about resources. Unused Resources Capacity Cost Driver Volume Resources used Materials $ 2,500 10,000 pounds Energy 4,670 350 machine-hours Setups 0 86 setups Purchasing 3,600 100 purchase orders Customer service 7,000 90 returns Long-term labor 4,960 340 labor-hours. Administrative 7,760 440 labor- hours Resources supplied Materials $ 122,500 Energy 21,820 Setups 24,080 Purchasing 26,600 Customer service 20,500 Long- term labor 29,100 Administrative 30,200 Sales revenue for Carbon Company is $590,000. Required: a. Prepare a traditional income statement. b. Prepare an activity- based income statement.

Carbon Company provides the following information about resources. Unused Resources Capacity Cost Driver Volume Resources used Materials $ 2,500 10,000 pounds Energy 4,670 350 machine-hours Setups 0 86 setups Purchasing 3,600 100 purchase orders Customer service 7,000 90 returns Long-term labor 4,960 340 labor-hours. Administrative 7,760 440 labor- hours Resources supplied Materials $ 122,500 Energy 21,820 Setups 24,080 Purchasing 26,600 Customer service 20,500 Long- term labor 29,100 Administrative 30,200 Sales revenue for Carbon Company is $590,000. Required: a. Prepare a traditional income statement. b. Prepare an activity- based income statement.

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Description: Carbon Company provides thefollowing information aboutresources. Unused ResourcesCapacity Cost Driver VolumeResources used Materials $ 2,50010,000 pounds Energy 4,670 350machine-hours Setups 0 86setups Purchasing 3,600 100purchase orders Customer se

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 1EA: Steeler Towel Company estimates its overhead to be $250,000. It expects to have 100,000 direct labor...

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Similar questions

Wrappers Tape makes two products: Simple and Removable. It estimates it will produce 369,991 units of Simple and 146,100 of Removable, and the overhead for each of its cost pools is as follows: It has also estimated the activities for each cost driver as follows: Â How much is the overhead allocated to each unit of Simple and Removable?
Carbon Company provides the following information about resources. Unused Resources Capacity Cost Driver Volume Resources used Materials $ 2,500 10,000 pounds Energy 5,750 360 machine-hours Setups 0 89 setups Purchasing 4,000 90 purchase orders Customer service 7,900 70 returns Long-term labor 4,150 350 labor-hours Administrative 4,880 440 labor-hours Resources supplied Materials $ 122,500 Energy 21,950 Setups 24,920 Purchasing 26,500 Customer service 20,500 Long-term labor 29,700 Administrative 28,200 Sales revenue for Carbon Company is $590,000. Required: a. Prepare a traditional income statement.b. Prepare an activity-based income statement.
Conlon Enterprises reports the following information about resources. Cost Driver Rate Cost Driver Volume Resources used Setups $ 395 per run 450 runs Clerical 35 per run 3,000 pages typed Resources supplied Setups $181,200 Clerical 113,900 Sales revenue totaled $340,000. Required: Prepare an activity-based income statement. Activity-Based Income Statement Resources Used Unused Resource Capacity Resources Supplied Sales revenue _____________…
Conlon Enterprises reports the following information about resources. Cost Driver Rate Cost Driver Volume Resources used Setups $ 380 per run 435 runs Clerical 45 per page 2,700 pages typed Resources supplied Setups $ 168,600 Clerical 130,100 Sales revenue totaled $325,000. Required: a. Prepare a traditional income statement. b. Prepare an activity-based income statement.
Hosmer Industries provides the following information about resources and usage: Unused Resources Capacity Cost Driver Volume Resources used Materials Power Setups Purchasing $ 4,800 $ 3,744 $ 1,800 $ 4,320 Client assistance $18,240 $ 8,160 $ 6,720 6,400 272 62 64 $ 235,200 $ 42,912 $ 57,600 $ 50,400 $ 37,440 $ 69,600 $ 67,200 40 256 3,360 Supervision Facility cost Resources supplied Materials Power Setups Purchasing Client assistance Supervision Facility cost Sales revenue for Hosmer Industries is $720,000. Required: Prepare a traditional income statement. Prepare an activity-based income statement. pounds hours setups purchase orders inquiries labor-hours square meters
Carbon Company provides the following information about resources. Unused Resources Capacity Cost Driver Volume Resources used Materials $ 2,100 9,000 pounds Energy 3,490 390 machine-hours Setups 0 81 setups Purchasing 3,700 90 purchase orders Customer service 4,000 90 returns Long-term labor 4,800 340 labor-hours Administrative 8,820 440 labor-hours Resources supplied Materials $ 101,100 Energy 21,430 Setups 24,300 Purchasing 26,200 Customer service 17,500 Long-term labor 30,300 Administrative 31,700 Sales revenue for Carbon Company is $550,000. Required: A. Prepare a traditional income statement. Traditional Income Statement Total costs B. Prepare an activity-based income statement.…
Accounting Question
Activity Cost Pool Cost Driver EstimatedOverhead Use perProduct A Use perProduct B Machine Setups Setups $144,000 6,000 2,000 Assembly Number of Parts 71,000 25,000 46,000 Machine Maintenance Machine Hours 200,000 13,000 37,000 Compare the overhead allocation using (A) the traditional allocation method and (B) the activity-based costing method. (Hint: the traditional method uses machine hours as the allocation base.) For those boxes in which you must enter subtractive or negative numbers use a minus sign.
Exercise 7-4 (Algo) Second-Stage Allocation [LO7-4] Klumper Corporation is a diversified manufacturer of industrial goods. The company's activity-based costing system contains the following six activity cost pools and activity rates: Activity Cost Pool Supporting direct labor Machine processing Machine setups Number of units produced per year Direct labor-hours Activity Rate $ 11 per direct labor-hour $5 per machine-hour $ 45 Production orders Shipments $ 120 per shipment Product sustaining $ 900 per product Activity data have been supplied for the following two products: Machine-hours Machine setups Production orders Shipments Product sustaining per setup $ 160 per order Total Expected Activity K425 M67 2,000 200 1,025 2,600 7 7 14 3 50 40 3 3 3 3 Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system?
ABC Company has an ABC system with three pools: Total cost in cost pool Total $13,000 Activity Product X Machine setups Customer service Maintenance Cost Driver Product Y #setups #orders machine- hours $6,000 $10,000 Compute total capacity costs allocated to product X. Group of answer choices $29,000 $9,000 $18,500 $5,000 not enough information Activity volume (#cost driver units) 45 15 25 20 65 5 20 25 50
eBook Carlton's Kitchen's three cost pools and overhead estimates are as follows: Activity Cost Pool Cost Driver EstimatedOverhead Use perProduct A Use perProduct B Machine Setups Setups $162,000 5,000 4,000 Assembly Number of Parts 68,000 24,000 44,000 Machine Maintenance Machine Hours 150,000 13,000 37,000 Compare the overhead allocation using (A) the traditional allocation method and (B) the activity-based costing method. (Hint: the traditional method uses machine hours as the allocation base.) For those boxes in which you must enter subtractive or negative numbers use a minus sign. Product A Product B Total Overhead (ABC) $fill in the blank 1 $fill in the blank 2 Total overhead (traditional) fill in the blank 3 fill in the blank 4 Difference $fill in the blank 5 $fill in the blank 6
ABC Company has an ABC system with three pools: Total cost in cost pool Activity Machine setups Customer service Maintenance $18,500 $5,000 Cost Driver $29,000 #setups O $9,000 #orders not enough information machine- hours $13,000 $6,000 $10,000 Compute total capacity costs allocated to product X. Activity volume (#cost driver units) Product X Product Y Total 45 15 25 20 5 25 65 20 50