2. Now assume that Amanda has hired you, a consultant, to help her to adopt an activity- based costing system. You have gathered activity-based information For your analysis, calculate each of the following: A. Calculate the capacity cost driver rates for each of the overhead resources. B. Determine the total monthly overhead resource costs allocated to each of the four production departments. Note: In your intermediary calculations, make sure to show the costs allocated from each resource to each production department. Table 6: Activity-Based Costing Information Panel A: Monthly Overhead Resource Costs and Cost Driver Information Overhead Resource Cost Production Supplies Facility Costs Purchase Support Costs Customer Order Support Costs Master Chocolatier Salary VP of Operations Salary Total Budgeted Overhead Costs Cost ($) Level Cost Driver 3,600 Facility Square Feet Cost Driver Volume 3,000 6,300 Facility Square Feet 3,000 2,000 Batch # Purchase Orders 80 4,000 Customer 3,900 Batch 5,000 Customer #Customer Orders # Set Ups 500 100 #Customer Orders 500 $24,800 Panel B: Monthly Production Department Resource Usage # Purchase Orders Pouring 60 Inspection Foiling 0 Labelling Total 4 16 80 # Customer Orders 500 500 # Set Ups Square Feet 100 750 100 750 750 750 3,000 Panel C: Production Department Hours Per Average 175-Bar Batch Size Product 1: Product 2: Product 3: Product 4: 1.25 oz. Organic 1.25 oz. Non-Organic 3.0 oz. Non-Organic 3.25 oz. Organic Pouring Inspection 2 0.5 1 0.5 1 2 0.35 0.35 Foiling 0.75 0.75 0.75 0.75 Labelling 1 1 1 1
2. Now assume that Amanda has hired you, a consultant, to help her to adopt an activity- based costing system. You have gathered activity-based information For your analysis, calculate each of the following: A. Calculate the capacity cost driver rates for each of the overhead resources. B. Determine the total monthly overhead resource costs allocated to each of the four production departments. Note: In your intermediary calculations, make sure to show the costs allocated from each resource to each production department. Table 6: Activity-Based Costing Information Panel A: Monthly Overhead Resource Costs and Cost Driver Information Overhead Resource Cost Production Supplies Facility Costs Purchase Support Costs Customer Order Support Costs Master Chocolatier Salary VP of Operations Salary Total Budgeted Overhead Costs Cost ($) Level Cost Driver 3,600 Facility Square Feet Cost Driver Volume 3,000 6,300 Facility Square Feet 3,000 2,000 Batch # Purchase Orders 80 4,000 Customer 3,900 Batch 5,000 Customer #Customer Orders # Set Ups 500 100 #Customer Orders 500 $24,800 Panel B: Monthly Production Department Resource Usage # Purchase Orders Pouring 60 Inspection Foiling 0 Labelling Total 4 16 80 # Customer Orders 500 500 # Set Ups Square Feet 100 750 100 750 750 750 3,000 Panel C: Production Department Hours Per Average 175-Bar Batch Size Product 1: Product 2: Product 3: Product 4: 1.25 oz. Organic 1.25 oz. Non-Organic 3.0 oz. Non-Organic 3.25 oz. Organic Pouring Inspection 2 0.5 1 0.5 1 2 0.35 0.35 Foiling 0.75 0.75 0.75 0.75 Labelling 1 1 1 1
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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hello please help me with my practice probelms i don't understand if
Transcribed Image Text:2. Now assume that Amanda has hired you, a consultant, to help her to adopt an activity-
based costing system. You have gathered activity-based information
For your analysis, calculate each of the following:
A. Calculate the capacity cost driver rates for each of the overhead resources.
B. Determine the total monthly overhead resource costs allocated to each of the
four production departments. Note: In your intermediary calculations, make sure
to show the costs allocated from each resource to each production department.
Transcribed Image Text:Table 6: Activity-Based Costing Information
Panel A: Monthly Overhead Resource Costs and Cost Driver Information
Overhead Resource Cost
Production Supplies
Facility Costs
Purchase Support Costs
Customer Order Support Costs
Master Chocolatier Salary
VP of Operations Salary
Total Budgeted Overhead
Costs
Cost ($)
Level
Cost Driver
3,600
Facility
Square Feet
Cost Driver
Volume
3,000
6,300
Facility
Square Feet
3,000
2,000
Batch
# Purchase Orders
80
4,000 Customer
3,900 Batch
5,000 Customer
#Customer Orders
# Set Ups
500
100
#Customer Orders
500
$24,800
Panel B: Monthly Production Department Resource Usage
# Purchase Orders
Pouring
60
Inspection Foiling
0
Labelling
Total
4
16
80
# Customer Orders
500
500
# Set Ups
Square Feet
100
750
100
750
750
750
3,000
Panel C: Production Department Hours Per Average 175-Bar Batch Size
Product 1:
Product 2:
Product 3:
Product 4:
1.25 oz. Organic
1.25 oz. Non-Organic 3.0 oz. Non-Organic
3.25 oz. Organic
Pouring
Inspection
2
0.5
1
0.5
1
2
0.35
0.35
Foiling
0.75
0.75
0.75
0.75
Labelling
1
1
1
1
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