1. Compute an activity rate for each activity using activity-based costing. Required informationUse the following information for the Problems below. (Algo)[The following information applies to the questions displayed below.]Tent Master produces Pup tents and Pop-up tents. The company budgets $301,000 of overhead cost and 43,000 directlabor hours. Additional information follows.Selling Price$ 80Per UnitDirect MaterialsDirect Labor$ 21$ 46Pup tentPop-up tent752228Problem 4-3A (Algo) Using activity-based costing to allocate overhead cost, and compute overhead costper unit and gross profit per unit LO P3ActivityAssemblyElectricityMaterials purchasingBudgeted Cost$ 215,00025,00061,000$ 301,000Activity Cost DriverDirect labor hours (DLH)Machine hours (MH)Purchase orders (PO)BudgetedActivity Usage43,00010,000500Total Required 1Required 2Required 3Required 4Compute an activity rate for each activity using activity-based costing. (Round "Activity Rate" to 2 decimal places.)ActivityBudgeted CostBudgeted Activity UsageActivity RateAssemblyElectricityMaterials purchasing

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Description: 1. Compute an activity rate for each activity using activity-based costing. Required informationUse the following information for the Problems below. (Algo)[The following information applies to the questions displayed below.]Tent Master produces Pup

Activity based costing means where the product is valued on the basis of actual direct material ,…

Answered: 1. Compute an activity rate for each…

Business

Accounting

1. Compute an activity rate for each activity using activity-based costing.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Which cost accounting method assumes that the cost of production is driven by the number of units produced? A. Activity-Based Costing (ABC)B. Standard CostingC. Absorption CostingD. Variable Costing
In the first stage of ABC, a cost driver is selected for each activity cost pool. True or False?
There are four steps in the two-stage cost allocation process using ABC. Which of the following not one of those steps? Select a cost driver for each activity cost pool. O Identify and classify activities. Identify the volume-based cost driver. O Form activity cost pools and assign indirect costs to each pool.
in the process costing the main goal in accounting for cost is to .......... product cost
Under activity-based costing, second stage allocation would involve: a. Calculating activity rates O b. Assigning costs to cost objects. O c. Assigning costs to cost pools O d. None of the given answers . O e. Defining activity measures
8. Identify the correct sequence of the Activity Based Costing approach I. Identify the main activities II. Create cost drivers III. Calculate the activity cost driver rate IV. Create cost pool V. Charge costs of activities to products a. I, III, IV, II, V b. I, IV, II, III, V c. II, I, III, IV, V d. I, II, III, IV, V
Activity based Costing enables overhead cost to be ___________assigned to cost objects. a. Over b. Under c. Accurately d. Highly
Compute Unit Costs and Gross Margin Pg. 325 Please show and explain how to compute the Unit Costs and the Gross Margin in an Activity Based Costing System.
ABC costing attempts to: O A. classify as many costs as indirect costs as is feasible. OB. identify the activities involved in a process. create as many cost pools as possible. O C. O D. seek a lesser level of detail.
explain the difference between target costing, skimming costing, and penetration costing.
Compare and contrast the Absorption Costing method and the Activity Based Costing (ABC) method.
Explain how activity-based costing systems can provide more accurate product costs than traditional cost systems. Give explanation in details with example