Groleau Corporation has an activity-based costing system with three activity cost pools-Processing, Setting Up, and Other. The company's overhead costs, which consist of factory utilities and indirect labor, are allocated to the cost pools in proportion to the activity cost pools' consumption of resources. Costs in the Processing cost pool are assigned to products based on machine-hours (MHS) and costs in the Setting Up cost pool are assigned to products based on the number of batches. Costs in the Other cost pool are not assigned to products. Data concerning the two products and the company's costs and activity-based costing system appear below: Factory utilities (total) Indirect labor (total) Distribution of Resource Consumption Across Activity Cost Pools Factory utilities Indirect labor Product 58 Product F1 Total Sales (total) Direct materials (total) Direct labor (total) Factory utilities Indirect labor Total Processing 0.50 0.30 $ MHS 2,900 7,600 10,500 Batches 1,600 600 2,200 $32,300 $14,100 Product 58 $72,250 $25,400 $30,000 0 $ Assign overhead costs to activity cost pools using activity-based costing. Activity Cost Pools Processing Setting Up Setting Up 0.30 0.30 Activity Rate per MH per batch 0 $ Other 0.20 0.40 Product F1 $ 99,250 $ 38,700 $ 40,700 Other $ $ 0 S Total Calculate activity rates for each activity cost pool using activity-based costing. (Round your answers to 2 decimal places.) Activity Cost Pools Processing Setting up 0 0 0
Groleau Corporation has an activity-based costing system with three activity cost pools-Processing, Setting Up, and Other. The company's overhead costs, which consist of factory utilities and indirect labor, are allocated to the cost pools in proportion to the activity cost pools' consumption of resources. Costs in the Processing cost pool are assigned to products based on machine-hours (MHS) and costs in the Setting Up cost pool are assigned to products based on the number of batches. Costs in the Other cost pool are not assigned to products. Data concerning the two products and the company's costs and activity-based costing system appear below: Factory utilities (total) Indirect labor (total) Distribution of Resource Consumption Across Activity Cost Pools Factory utilities Indirect labor Product 58 Product F1 Total Sales (total) Direct materials (total) Direct labor (total) Factory utilities Indirect labor Total Processing 0.50 0.30 $ MHS 2,900 7,600 10,500 Batches 1,600 600 2,200 $32,300 $14,100 Product 58 $72,250 $25,400 $30,000 0 $ Assign overhead costs to activity cost pools using activity-based costing. Activity Cost Pools Processing Setting Up Setting Up 0.30 0.30 Activity Rate per MH per batch 0 $ Other 0.20 0.40 Product F1 $ 99,250 $ 38,700 $ 40,700 Other $ $ 0 S Total Calculate activity rates for each activity cost pool using activity-based costing. (Round your answers to 2 decimal places.) Activity Cost Pools Processing Setting up 0 0 0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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