In order to compare WoolCorp’s current method with activity-based costing, you interview the production staff and compile the following information, which relates to the costs for raw wool and wool yarn. Type of Cost Activity Base Total Cost Sorting Hours of sorting $25,600 Cleaning Units of cleaning machine power 38,400 Combing Hours of combing machine use 1,200     Raw Wool Wool Yarn Hours of sorting required 1,000 4,000 Units of cleaning machine power required 1,800 4,200 Hours of combing machine use required 70 30   In the following table, compute and enter the activity rate for each of the three activities. If required, round your answers to the nearest cent. Activity Activity Rate Sorting   per sorting hour Cleaning   per unit of cleaning machine power Combing   per hour of combing machine use   In the following table, allocate the costs of sorting, cleaning, and combing based on the rates of activity consumed by each product’s process. When required, round your answers to the nearest dollar.   Raw Wool Wool Yarn Sorting cost $   $   Cleaning cost     Combing cost     Total cost $   $           X Final Question     Answer the following question. After reviewing your work on the Single Plantwide Rate and Activity-Based Costing panels, which of the costing method would you recommend to WoolCorp, and why? Since both the methods give the same costs for each product, there is no advantage to either method.   The company should use whichever method is the cheapest to implement.   Activity-based costing, because it recognizes differences in how each product uses factory overhead activities, yielding more accurate product costs.   Single plantwide factory overhead rate method, because it is a tried-and-true method used for the entire life of the company.

Activity-Based Costing: Selling and Administrative Expenses Jungle Junior Company manufactures and sells outdoor play equipment. Jungle Junior uses activity-based costing to determine the cost of the sales order processing and the customer return activity. The sales order processing activity has an activity rate of $20 per sales order, and the customer return activity has an activity rate of $100 per return. Jungle Junior sold 2,500 swing sets, which consisted of 750 orders and 80 returns. a. Determine the total sales order processing and customer return activity cost for swing sets. $ b. Determine the per-unit sales order processing and customer return activity cost for swing sets. Round your answer to the nearest cent. per unit ********* 200

1. Calculate the overhead rate based on the traditional overhead allocation method using direct labour hours as the base.   2. Calculate the total overhead applied to order no. 147 using the traditional overhead rate calculated in question 3.1 above.    3. Using activity based costing (ABC), calculate the overhead rate for the following activity: Purchasing. That is, what is the overhead rate per purchase order?

O&G Company manufactures console tables and uses an activity-based costing system to allocate all manufacturing conversion costs. Each console table consists of 40 separate parts totaling $250 in direct materials and requires 5.0 hours of machine time to produce. Additional information follows: Activity Materials handling Allocation Base Number of parts Machine hours Number of parts Number of finished units Machining Assembling Packaging What is the number of finished console tables? OA 200 OB. 467 OC. 25 OD. Cannot be determined from the information given Cost Allocation Rate $3.00 per part $4.80 per machine hour $1.00 per part $4.00 per finished unit

Maxey & Sons manufactures two types of storage cabinets—Type A and Type B—and applies manufacturing overhead to all units at the rate of $120 per machine hour. Production information follows.       Type A    Type BAnticipated volume (units)         24,000              45,000     Direct-material cost per unit    $    28         $    42     Direct-labor cost per unit         33              33      The controller, who is studying the use of activity-based costing, has determined that the firm’s overhead can be identified with three activities: manufacturing setups, machine processing, and product shipping. Data on the number of setups, machine hours, and outgoing shipments, which are the activities’ three respective cost drivers, follow.       Type A    Type B    TotalSetups         140              100              240     Machine hours         48,000              67,500              115,500     Outgoing shipments         200              150              350      The firm’s total…

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Lakeside Inc. manufactures four lines of remote control boats and uses activity-based costing to calculate product cost.   Activity Cost Pools EstimatedTotal Cost Estimated Cost Driver Machining $ 334,000 13,600 machine hours Setup   76,000 420 batches Quality control   103,000 830 inspections     Compute the activity rates for each of the following activity cost pools:     How do you find the activitiy costs???

In order to compare WoolCorp’s current method with activity-based costing, you interview the production staff and compile the following information, which relates to the costs for raw wool and wool yarn. Type of Cost Activity Base Total Cost Sorting Hours of sorting $25,600 Cleaning Units of cleaning machine power 38,400 Combing Hours of combing machine use 1,200   Raw Wool Wool Yarn Hours of sorting required 800     3,200     Units of cleaning machine power required 1,800     4,200     Hours of combing machine use required 80     20     In the following table, compute and enter the activity rate for each of the three activities. If required, round your answers to the nearest cent. Activity Activity Rate Sorting $fill in the blank ea9f75022074fe3_1 per sorting hour Cleaning $fill in the blank ea9f75022074fe3_2 per unit of cleaning machine power Combing $fill in the blank ea9f75022074fe3_3 per hour of combing machine use In the following table,…