4 Neal Company manufactures computer workstations. The company's three activities and their overhead cost drivers follow. Activity Budgeted Cost Activity Cost Driver Budgeted Activity Usage Machine hours 2,600 machine hours 144,000 Fabrication $ 130,000 Assembly Inspection Direct labor hours 119,000 Units inspected 3,000 direct labor hours 7,000 units Job 101's actual activity usage along with a partial customer profitability report follow. Job 101 Machine Hours 25 MH Direct Labor Hours 30 DLH Units 15 Profitability Report-Job 101 Sales Cost of goods sold Direct materials Direct labor Overhead Gross profit Customer service costs Customer income Required: $ 9,500 $ 2,440 1,250 ? ? ? 1,000 ? 1. Compute activity rates using activity-based costing. 2. Use the results from part 1 to allocate overhead cost to Job 101. 3. Complete the profitability report for Job 101. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute activity rates using activity-based costing. Activity Fabrication Assembly Inspection Budgeted Cost Budgeted Activity Usage Activity Rate

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 4BE: Activity-based costing: selling and administrative expenses Jungle Junior Company manufactures and...
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Neal Company manufactures computer workstations. The company's three activities and their overhead cost drivers follow.
Activity
Budgeted
Cost
Activity Cost Driver
Budgeted Activity Usage
Machine hours
2,600 machine hours
144,000
Fabrication $ 130,000
Assembly
Inspection
Direct labor hours
119,000 Units inspected
3,000 direct labor hours
7,000 units
Job 101's actual activity usage along with a partial customer profitability report follow.
Job 101
Machine Hours
25 MH
Direct Labor Hours
30 DLH
Units
15
Profitability Report-Job 101
Sales
Cost of goods sold
Direct materials
Direct labor
Overhead
Gross profit
Customer service costs
Customer income
Required:
$ 9,500
$ 2,440
1,250
?
?
?
1,000
?
1. Compute activity rates using activity-based costing.
2. Use the results from part 1 to allocate overhead cost to Job 101.
3. Complete the profitability report for Job 101.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2 Required 3
Compute activity rates using activity-based costing.
Activity
Fabrication
Assembly
Inspection
Budgeted Cost
Budgeted Activity Usage
Activity Rate
<Required 1
Required 2 >
Transcribed Image Text:4 Neal Company manufactures computer workstations. The company's three activities and their overhead cost drivers follow. Activity Budgeted Cost Activity Cost Driver Budgeted Activity Usage Machine hours 2,600 machine hours 144,000 Fabrication $ 130,000 Assembly Inspection Direct labor hours 119,000 Units inspected 3,000 direct labor hours 7,000 units Job 101's actual activity usage along with a partial customer profitability report follow. Job 101 Machine Hours 25 MH Direct Labor Hours 30 DLH Units 15 Profitability Report-Job 101 Sales Cost of goods sold Direct materials Direct labor Overhead Gross profit Customer service costs Customer income Required: $ 9,500 $ 2,440 1,250 ? ? ? 1,000 ? 1. Compute activity rates using activity-based costing. 2. Use the results from part 1 to allocate overhead cost to Job 101. 3. Complete the profitability report for Job 101. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute activity rates using activity-based costing. Activity Fabrication Assembly Inspection Budgeted Cost Budgeted Activity Usage Activity Rate <Required 1 Required 2 >
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