Exercise 7-4 (Algo) Second-Stage Allocation [LO7-4]Klumper Corporation is a diversified manufacturer of industrial goods. The company's activity-based costing system contains thefollowing six activity cost pools and activity rates:Activity Cost PoolSupporting direct laborMachine processingMachine setupsProduction ordersShipments$ 115 per shipmentProduct sustaining$ 850 per productActivity data have been supplied for the following two products:Number of units produced per yearDirect labor-hoursMachine-hoursMachine setupsProduction ordersShipmentsProduct sustainingActivity Cost PoolSupporting direct laborMachine processingMachine setupsProduction ordersShipmentsProduct sustainingTotal overhead costActivity Rate$ 8 per direct labor-hour$4 per machine-hour$ 40 per setup$170 per order$K425Total Expected ActivityK425M672,00030200 $2001,1503,000Required:How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system?77143M673200333

The overhead is applied to the production on the basis of pre-determined overhead rate. Using…

Exercise 7-4 (Algo) Second-Stage Allocation [LO7-4] Klumper Corporation is a diversified manufacturer of industrial goods. The company's activity-based costing system contains the following six activity cost pools and activity rates: Activity Cost Pool Supporting direct labor Machine processing Machine setups Production orders Shipments Product sustaining Activity data have been supplied for the following two products: Number of units produced per year Di labor-hours Machine-hours Machine setups Production orders Shipments Product sustaining Activity Cost Pool Supporting direct labor Machine processing Machine setups Production orders Shipments Product sustaining Total overhead cost Activity Rate $8 per direct labor-hour $4 per machine-hour $ 40 per setup $170 per order $115 per shipment $ 850 per product $ K425 Total Expected Activity K425 M67 2,000 0 $ 200 1,150 3,000 7 7 Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system? M67 14 3 30 20 0 3 3 3 3

Exercise 7-4 (Algo) Second-Stage Allocation [LO7-4] Klumper Corporation is a diversified manufacturer of industrial goods. The company's activity-based costing system contains the following six activity cost pools and activity rates: Activity Cost Pool Supporting direct labor Machine processing Machine setups Production orders Shipments Product sustaining Activity data have been supplied for the following two products: Number of units produced per year Di labor-hours Machine-hours Machine setups Production orders Shipments Product sustaining Activity Cost Pool Supporting direct labor Machine processing Machine setups Production orders Shipments Product sustaining Total overhead cost Activity Rate $8 per direct labor-hour $4 per machine-hour $ 40 per setup $170 per order $115 per shipment $ 850 per product $ K425 Total Expected Activity K425 M67 2,000 0 $ 200 1,150 3,000 7 7 Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system? M67 14 3 30 20 0 3 3 3 3

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 5PB: Wrappers Tape makes two products: Simple and Removable. It estimates it will produce 369,991 units...

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Exercise 7-4 (Algo) Second-Stage Allocation [LO7-4] Klumper Corporation is a diversified manufacturer of industrial goods. The company's activity-based costing system contains the following six activity cost pools and activity rates: Activity Cost Pool Supporting direct labor Machine processing Machine setups Production orders. Shipments Product sustaining Activity data have been supplied for the following two products: Number of units produced per year Direct labor-hours Machine-hours Machine setups Production orders Shipments Product sustaining Activity Rate $10 per direct labor-hour $3 per machine-hour $50 per setup $ 170 per order $115 per shipment $850 per product Activity Cost Pool Supporting direct labor Machine processing Machine setups Production orders Shipments Product sustaining Total overhead cost K425 Total Expected Activity K425 M67 2,000 200 1,075 2,600 19 19 38 Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing…
Required information Davis Company uses an activity-based costing system in which there are three activity cost pools. The company has provided the following data concerning its costs and its activity-based costing system: Costs: Manufacturing overhead Selling and administrative expenses Total Distribution of Resource Consumption: Manufacturing overhead Selling and administrative expenses Order Size Multiple Choice $180.000 35% 50% $255.000 Activity Cost Pools Customer Other Support 55% 30% 10% 20% $400,000 200,000 $600,000 Total The "Other activity cost pool consists of the costs of idle capacity and organization-sustaining costs. You have been asked to complete the first-stage allocation of the costs to the activity cost pools 100% How much cost, in total, would be allocated in the first-stage allocation to the Customer Support activity cost pool? 100%
Question No.5 Ivory Corporation manufactures two products (A and B). The overhead costs have been divided into four cost pools that use the following activity drivers: Product Number of Orders Number of Set-ups Number of Labor Transactions Labor Hours A B Cost per pool 20 5 Rs.15,000 35 70 Rs.8,400 1,000 1,500 Rs.120,000 75 125 Rs.40,000 Required: Compute the allocation rates for each of the activity drivers listed. Allocate the overhead cost to Product A and B using activity-based-costing. Compute the overhead rate using machine hours under the functional based costing system. Allocate the overhead cost to Product A and B using the functional-based costing system overhead rate calculated in part C.
Required information Dierich Company uses an activity-based costing system with three activity cost pools. The company has provided the following data concerning its costs and its activity-based costing system: Costs: Manufacturing overhead Selling and administrative expenses Total Distribution of Resource Consumption: Manufacturing overhead Selling and administrative expenses Order Size 15% 60% Activity Cost Pools Other Customer Support 75% 20% 10% 20% $600,000 220.000 $820,000 Total 100% 100% D The "Other" activity cost pool consists of the costs of idle capacity and organization-sustaining costs. You have been asked to complete the first-stage allocation of costs to the activity cost pools.
Vanvalkenburg. Inc., manufactures and sells two products: Product GQ5 and Product JO. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Estimated Expected Activity Activity Overhead Activity Cost Pools Measures Cost Product Q5 Product JØ Total Labor-related DLHS $191,748 70,536 295,592 Production orders 3,000 2,800 5,800 orders 300 500 800 Order size MHs 4,300 4,500 8,800 $557,876 The activity rate for the Order Size activity cost pool under activity-based costing is closest to: Multiple Cholce $36.23 per MH $68.48 per MH $96.19 per MH
Exercise 7-4 (Algo) Second-Stage Allocation [LO7-4] Klumper Corporation is a diversified manufacturer of industrial goods. The company's activity-based costing system contains the following six activity cost pools and activity rates: Activity Cost Pool Supporting direct labor Machine processing Machine setups Activity Rates $ 11 per direct labor -hour 4 per machine-hour 50 per setup $ 150 per order $ 125 per shipment $ 850 per product Production orders Shipments Product sustaining Activity data have been supplied for the following two products: Total Expected Activity K425 Number of units produced per year Direct labor-hours Machine-hours Machine setups 200 2,000 975 40 3,000 30 13 2 Production orders Shipments Product sustaining 13 2 26 2 2 Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system? Activity Cost Pool K425 M67 Supporting direct labor Machine processing Machine setups Production orders Shipments Product sustaining…
Second-Stage Allocation Klumper Corporation is a diversified manufacturer of industrial goods. The company’s activity-based costing system contains the following six activity cost pools and activity rates: Activity data have been supplied for the following two products: Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system?
3 Klumper Corporation is a diversified manufacturer of industrial goods. The company's activity-based costing system contains the following six activity cost pools and activity rates: Activity Cost Pool Supporting direct labor. Machine processing Machine setups Production orders. Shipments Product sustaining Activity Rates $10 per direct labor-hour $2 per machine-hour $40 per setup $ 160 per order. $ 125 per shipment. $900 per product
Vanvalkenburg, Inc., manufactures and sells two products: Product Q5 and Product JO. The company has an actvity-based costing system with the following activity cost pools, activity measures, and expected activity: Estimated Expected Activity Activity Overhead Activity Cost Pools Labor-related Measures Cost Product 05 Product J0 Total DLHS $191,748 70,536 295,592 3,000 300 4,300 2,800 5,800 Production orders Order size orders 500 800 MHs 4,500 8,800 $557,876 The activity rate for the Production Orders activity cost pool under activity-based costing is closest to: Multiple Cholce $63.40 per order S6874 per order S8817 per oroer 92 F AQI 61 pe here to search DELL 3.
TB MC Qu. 4-96 Welrlck, Inc., manufactures and sells ... Weirick, Inc., manufactures and sells two products: Product T8 and Product P4. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity Estimated Overhead Cost $ 139,900 65,970 1,031,820 $1,237,690 Expected Activity Activity Cost Pools Labor-related Production orders Order size Activity Measures DLHS Product T8 Product P4 5,400 1,000 Total 8,100 1,600 2,700 orders 600 MHs 3,100 4,000 7,100 The total overhead applied to Product P4 under activity-based costing is closest to: (Round your Intermedlete calculations to 2 decimal places.) Multiple Cholce $965,850 $581,320 S652.687 Mc Graw Hill 10:55 AM 66°F Mostly cloudy 21 10/20/2021 P Type here to search DELL PgUp PgDn Home F11 F12 PrtScr Insert Delete F8 F9 F10 F2 F5 F6 F7 F3 F4 Num
Exercise 7-15 (Static) Comprehenslve Activity-Based Costing Exercise [LO7-2, LO7-3, LO7-4, LO7-5] Advanced Products Corporation has supplied the following data from its activity-based costing system: Overhead Costs Wages and salaries Other overhead costs $ 300,000 100,000 $ 400,000 Total overhead costs Total Activity for the Activity Cost Pool Supporting direct labor Order processing Customer support Other Activity Measure Number of direct labor-hours Number of customer orders Number of customers This is an organization- sustaining activity Year 20, 900 DLHS 400 orders 200 customers Not applicable Distribution of Resource Consumption Across Activities Supporting Direct Labor 40% Customer Support Orden Processing Other Total Wages and salaries Other overhead costs 30% 20% 10% 100% 100% 30% 10% 20% 40% During the year, Advanced Products completed one order for a new customer, Shenzhen Enterprises. This customer did not order any other products during the year. Data concerning that order…
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