FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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5 Thomton Company makes two types of circuit boards. One is a high-caliber board designed to accomplish the most demanding tasks the other is a low-caliber board designed to provide limited service at an affordable price. During its most recent accounting period, Thornton incurred $330,000 of inspection cost. Thornton recently established an activity-based costing system that classifies its activities into four categories Categories and appropriate cost drivers follow eBook PHIL References High caliber Low caliber Total Direct Laber Number of Hours Batches 20 5,000 22,000 10,000 (a) Unit-level activities (b) Batch-level activities (c) Product-level activities (d) Facility level activities Required Allocate the inspection cost between the two products assuming that it is driven by (a) unit-level activities, (b) batch-level activities, (c) product-level activities, or (d) facility-level activities. Note that each allocation represents a separate alternative. In other words, the $330,000 of inspection cost will be allocated four times, once for each cost driver. (Do not round Intermediate calculations.) Allocated Cost Number of Inspectors High-Caliber Boards Sumber of Square Feet 65,000 100,000 165.000 Low-Caliber Boards Check my work
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Transcribed Image Text:5 Thomton Company makes two types of circuit boards. One is a high-caliber board designed to accomplish the most demanding tasks the other is a low-caliber board designed to provide limited service at an affordable price. During its most recent accounting period, Thornton incurred $330,000 of inspection cost. Thornton recently established an activity-based costing system that classifies its activities into four categories Categories and appropriate cost drivers follow eBook PHIL References High caliber Low caliber Total Direct Laber Number of Hours Batches 20 5,000 22,000 10,000 (a) Unit-level activities (b) Batch-level activities (c) Product-level activities (d) Facility level activities Required Allocate the inspection cost between the two products assuming that it is driven by (a) unit-level activities, (b) batch-level activities, (c) product-level activities, or (d) facility-level activities. Note that each allocation represents a separate alternative. In other words, the $330,000 of inspection cost will be allocated four times, once for each cost driver. (Do not round Intermediate calculations.) Allocated Cost Number of Inspectors High-Caliber Boards Sumber of Square Feet 65,000 100,000 165.000 Low-Caliber Boards Check my work
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