A Xfx Cost information about Masic Incorporated is provided in cells A6 to D7. Actual cost information is provided in cells A11 to B14. A statement of re B C D E F G H Masik, Incorporated is analyzing its most current direct materials results against the budget. Here is the standard cost information: Standard Cost per Direct Material Standard Quantity per Unit Standard Cost per Unit Direct Materials $ 9.50 2 $ 19.00 3 9 Actual cost information is below: 0 1 Units Produced 4,000 2 Materials Purchased 3 Material Used 8,500 7,800 4 Cost of Direct Materials $ 85,000 5 6 Required: 7 Fill in the cells below with required data for variance calculations and favorability. 8 Hint: Use the ABS() function to calculate amounts and use an IF() condition to determine the favorability of the variances. 9 20 21 Actual x Actual (used) 22 AQ AP 23 Direct Materials Variances Actual x Standard (used) AQ SP

A Xfx Cost information about Masic Incorporated is provided in cells A6 to D7. Actual cost information is provided in cells A11 to B14. A statement of re B C D E F G H Masik, Incorporated is analyzing its most current direct materials results against the budget. Here is the standard cost information: Standard Cost per Direct Material Standard Quantity per Unit Standard Cost per Unit Direct Materials $ 9.50 2 $ 19.00 3 9 Actual cost information is below: 0 1 Units Produced 4,000 2 Materials Purchased 3 Material Used 8,500 7,800 4 Cost of Direct Materials $ 85,000 5 6 Required: 7 Fill in the cells below with required data for variance calculations and favorability. 8 Hint: Use the ABS() function to calculate amounts and use an IF() condition to determine the favorability of the variances. 9 20 21 Actual x Actual (used) 22 AQ AP 23 Direct Materials Variances Actual x Standard (used) AQ SP

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter12: Activity-based Management

Section: Chapter Questions

Problem 14E: Sanford, Inc., has developed value-added standards for four activities: purchasing parts, receiving...

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Banks Corporation has the following information for direct materials for the latest period. BANKS CORPORATION INFORMATION FOR DIRECT MATERIALS FOR THE LATEST PERIOD Standard price per unit of direct materials Actual price per unit of direct materials Budgeted units of output Standard quantity of direct materials allowed per unit of output Actual units of direct materials used Actual units of direct materials purchased Actual units of output produced SA SA $ 15.00 $ 16.50 45,000 3 units 40,000 50,000 14,000 The company calculates its price variance based on quantity purchased. What was the total quantity of direct materials allowed based on the standards? 45,000. 50,000.
A company uses activity-based costing to determine the costs of its three products: A, B, and C. The budgeted cost and activity for each of the company's three activity cost pools are shown in the following table: Budgeted Activity Activity Cost Pool Budgeted Cost Product A Product B Product C Activity 1 $ 87,000 7,700 10,700 21,700 Activity 2 $ 62,000 8,700 16,700 9,700 Activity 3 $ 116,000 4,200 2,700 3,325 How much overhead will be assigned to Product B using activity-based costing?
Given the following information from Power Enterprises direct materials budget, how much direct materials needs to be purchased?
Lonsdale Inc. manufactures entry and dining room lighting fixtures. Five activities are used in manufacturing the fixtures. These activities and their associated budgeted activity costs and activity bases are as follows: Corporate records were obtained to estimate the amount of activity to be used by the two products. The estimated activity-base usage quantities and units produced follow: a. Determine the activity rate for each activity. b. Use the activity rates in (a) to determine the total and per-unit activity costs associated with each product. Round to the nearest cent.
Making journal entries Assume that during the month of April the production report of Algonquin Adhesives Inc. in E8-10 revealed the following information: Make journal entries to charge materials (use the materials purchase price variance) and labor to Work in Process. (Remember to retrieve the standard costs from E8-10 before solving this exercise.)
Sanford, Inc., has developed value-added standards for four activities: purchasing parts, receiving parts, moving parts, and setting up equipment. The activities, the activity drivers, the standard and actual quantities, and the price standards for 20x1 are as follows: The actual prices paid per unit of each activity driver were equal to the standard prices. Required: 1. Prepare a cost report that lists the value-added, non-value-added, and actual costs for each activity. 2. Which activities are non-value-added? Explain why. Also, explain why value-added activities can have non-value-added costs.
A company uses activity-based costing to determine the costs of its three products: A, B, and C. The budgeted cost and activity for each of the company's three activity cost pools are shown in the following table: Budgeted Activity Activity Budgeted Cost Activity Cost Driver Product A Product B Product C $ 70,000 $ 45,000 $ 82,000 Square feet Units inspected Activity 1 6,000 9,000 20,000 Activity 2 Activity 3 7,000 15,000 8,000 Setups 2,500 1,000 1,625 What are the activity rates for the three activities under activity-based costing? Multiple Choice (1) $2.00 per square foot; (2) $3.00 per unit; (3) $3.50 per setup. (1) $3.50 per square foot; (2) $1.50 per unit; (3) $32,80 per setup. (1) $3.50 per square foot; (2) $3.00 per unit; (3) $16.00 per setup. (1) $2.00 per square foot: (2) $1.50 per unit; (3) $16.00 per setup.
A company uses activity-based costing to determine the costs of its three products: A, B, and C. The budgeted cost and activity for each of the company's three activity cost pools are shown in the following table: Budgeted Activity Activity Cost PoolBudgeted Cost Product AProduct BProduct Activity 1 7,500 10,500 21,500 Activity 2 8,500 16,500 9,500 Activity 3 4,000 2,500 3,125 How much overhead will be assigned to Product B using activity-based costing? 85,000 60,000 112,000
A company uses activity-based costing to determine the costs of its three products: A, B, and C. The budgeted cost and activity for each of the company's three activity cost pools are shown in the following table: Budgeted Activity Activity Cost Pool Activity 1 Activity 2 Activity 3 Budgeted Cost Product A Product B 6,300 7,300 2,800 Product C $73,000 $48,000 $88,000 20,300 8,300 1,925 9,300 15,300 1,300 How much overhead will be assigned to Product B using activity-based costing?
The pool rate is defined as the cost per unit of the cost driver for a particular activity cost pool. Group of answer choices True False Rocket Products manufactures three types of remote-control devices: Economy, Standard, and Deluxe. The company, which uses activity-based costing, has identified five activities (and related cost drivers). Each activity, its budgeted cost, and related cost driver is identified below. Activity Cost Cost Driver Material handling $ 225,000 Number of parts Material insertion 2,475,000 Number of parts Automated machinery 840,000 Machine hours Finishing 170,000 Direct labor hours Packaging 170,000 Orders shipped Total $ 3,880,000 The following information pertains to the three product lines for next year: Economy Standard Deluxe Units to be produced 10,000 5,000 2,000 Orders to be shipped 1,000 500 200 Number of parts per unit 10 15 25 Machine…
A company uses activity-based costing to determine the costs of its three products: A, B, and C. The budgeted cost and activity for each of the company's three activity cost pools are shown in the following table: Activity Cost Pool Budgeted Cost $70,000 $45,000 $82,000 Product A Budgeted Activity Product B 9,000 15,000 1,000 Product C Activity 1 6,000 Activity 2 7,000 Activity 3 2,500 Which of the following statements is true regarding this company's activity rates? 20,000 8,000 1,625 Seleccione una: O The activity rate under the activity-based costing system for Activity 2 is $1.50. O The activity rate under the activity-based costing system for Activity 2 is $19.50. O The activity rate under the activity-based costing system for Activity 2 is $2.00. O The activity rate under the activity-based costing system for Activity 2 is $16.00. O The activity rate under the activity-based costing system for Activity 2 is $2.81.
Mirabile Corporation uses activity-based costing to compute product margins. Overhead costs have already been allocated to the company's three activity cost pools-- Processing, Supervising, and Other. The costs in those activity cost pools appear below: Processing $ 3,800 $ 23,800 $ 10,400 Supervising other Processing costs are assigned to products using machine-hours (MHs) and Supervising costs are assigned to products using the number of batches. The costs in the Other activity cost pool are not assigned to products. Activity data appear below: Batches MHs (Processing) (Supervising) Product MO 9,700 500 Product M5 300 500 Total 10,000 1,000 Finally, sales and direct cost data are combined with Processing and Supervising costs to determine product margins. Product MO Product M5 $ 74,100 $ 28,500 $ 27,800 $ 89,900 $ 31,400 $ 41,700 Sales (total) Direct materials (total) Direct labor (total) What is the product margin for Product M5 under activity-based costing? Multiple Choice C4786