Is estimatinng activity costs associated with producing disk drives, tapes drives, and wire drives. The indirect labor can be trace to four separate activity pools. The budgeted activity cost and activity base data by product are provided below. Activity Cost Activity Base Procurement $304,100 Number of purchase orders Scheduling 238,200 Number of production orders Materials handling 445,500 Number of moves Product development 734,300 Number of engineering changes Production 1,517,800 Machine hours Number of Number of Number Number of Number Purchase Production of Engineering Machine of Orders Orders Moves Changes Hours Units Disk drives 4,070 320 1,480 14 1,600 2,400 Tape drives 1,800 185 740 5 10,000 4,500 Wire drives 900 740 3,800 23 10,100 2,400 The activity-based cost for each tape drive unit is Oa. $725.11 Ob. $247.23 Oc. $201.36 Od. $16.2

Activity Cost Pools, Activity Rates, and Product Costs using Activity-Based Costing Caldwell Home Appliances Inc. is estimating the activity cost associated with producing ovens and refrigerators. The indirect labor can be traced into four separate activity pools, based on time records provided by the employees. The budgeted activity cost and activity-base formation are provided as follows: Activity Procurement Scheduling Materials handling Product development Total cost Ovens Refrigerators Totals Activity Pool Cost $12,600 90,000 11,000 50,000 $163,600 The estimated activity-base usage and unit information for two product lines was determined as follows: Ovens Refrigerators Number of purchase orders Number of production orders Number of moves Number of engineering changes Number of Purchase Orders 400 300 700 Procurement (per purchase order) Scheduling (per production order) Materials handling (per move) Product development (per engineering change order) Activity Base Number of…

Panamint Systems Corporation is estimating activity costs associated with producing disk drives, tapes drives, and wire drives. The indirect labor can be traced to four separate activity pools. The budgeted activity cost and activity base data by product are provided below.   Activity Cost   Activity Base Procurement $323,200   Number of purchase orders Scheduling 202,000   Number of production orders Materials handling 437,000   Number of moves Product development 700,700   Number of engineering changes Production 1,408,000   Machine hours   Number ofPurchaseOrders Number ofProductionOrders NumberofMoves Number ofEngineeringChanges MachineHours NumberofUnits Disk drives 4,170    440       1,480  14         2,400  2,100  Tape drives 1,600    225       570  4         9,100  3,700  Wire drives 12,700    890       4,400  30         10,700  2,400  The activity rate for the procurement activity cost pool is a.$63.42 per purchase order b.$17.50 per purchase…

Vishnu

Activity-Based Costing Slack Corporation has the following predicted indirect costs and cost drivers for the year for the given activity cost pools: Maintenance Materials handling Machine setups Inspections Machine hours Material moves Machine setups Inspection hours Fabrication Department Finishing Department Cost Driver $50,000 30,000 70,000 $40,000 Machine hours 15,000 Material moves 5,000 Machine setups 25,000 Inspection hours $85,000 The following activity predictions were also made for the year. Fabrication Department Finishing Department Direct materials cost Direct labor cost Machine hours (Fabrication) Machine hours (Finishing) Materials moves Machine setups Inspection hours It is assumed that the cost per unit of activity for a given activity does not vary between departments. Slack's president, Charles Slack, is trying to evaluate the company's product mix strategy regardin two of its five product models, ZX300 and SL500. The company has been using a company-wide overhead…

nt Systems Corporation is estimating activity costs associated with producing disk drives, tapes drives, and wire drives. The indirect labor can be traced to five separate activity pools. The budgeted activity cost and activity base data by product are as follows: Procurement Scheduling Materials handling Activity Cost $370,000 Activity Base Number of purchase orders 250,000 Number of production orders 500,000 Number of moves Product development 730,000 Number of engineering changes Production 1,500,000 Machine hours Number of Purchase Number of Number Production Number of Number of Engineering Machine Orders Orders Moves Changes Hours of Units Disk drives 4,000 300 1,400 10 2,000 2,000 Tape drives 4,000 150 800 10 8,000 4,000 Wire drives 12,000 800 4,000 25 10,000 2,500 The activity-based cost (rounded to the nearest cent) for each wire drive unit is a. $204.13 b. $173.51 c. $744.06 d. $394.12 Previous Next

Panamint Systems Corporation is estimating activity costs associated with producing disk drives, tapes drives, and wire drives. The indirect labor can be traced to four separate activity pools. The budgeted activity cost and activity base data by product are provided below.   Activity Cost   Activity Base Procurement $356,700   Number of purchase orders Scheduling 245,900   Number of production orders Materials handling 481,200   Number of moves Product development 719,400   Number of engineering changes Production 1,487,000   Machine hours   Number ofPurchaseOrders Number of ProductionOrders NumberofMoves Number ofEngineeringChanges MachineHours NumberofUnits Disk drives 3,940    270       1,350  12         1,600  1,800  Tape drives 1,900    185       590  6         9,600  4,400  Wire drives 11,300    880       3,600  28         11,300  2,000  The activity rate for the materials handling cost pool is a. $184.19 per move b. $20.81 per move c. $66.09 per…

Panamint Systems Corporation is estimating activity costs associated with producing disk drives, tapes drives, and wire drives. The indirect labor can be traced to four separate activity pools. The budgeted activity cost and activity base data by product are provided below. Procurement Scheduling Materials handling Product development Production Disk drives Tape drives Wire drives Activity Cost Activity Base $392,400 Number of purchase orders 233,100 Number of production orders 409,400 Number of moves 708,700 Number of engineering changes 1,526,300 Machine hours Number of Purchase Orders Number of Number Number of of Moves Engineering Changes 11 7 23 Production Orders 4,090 280 1,800 185 12,000 910 The activity-based cost for each disk drive unit is Oa. $793.58 Ob. $21.93 Oc. $235.34 Od. $191.6 1 1,410 740 4,500 Machine Hours 1,800 8,300 11,500 Number of Units 2,300 4,300 2,400

Activity-Based And Department Rate Product Costing and Product Cost Distortions Black and Blue Sports Inc. manufactures two products: snowboards and skis. The factory overhead incurred is as follows: Indirect labor $507,000 Cutting Department 156,000 Finishing Department 192,000     Total $855,000   The activity base associated with the two production departments is direct labor hours. The indirect labor can be assigned to two different activities as follows: Activity   Budgeted Activity Cost   Activity Base Production control   $237,000   Number of production runs     Materials handling   270,000   Number of moves     Total   $507,000           The activity-base usage quantities and units produced for the two products follow:     Number of Production Runs   Number of Moves   Direct Labor Hours-Cutting   Direct Labor Hours-Finishing   Units Produced Snowboards   430   5,000   4,000   2,000   6,000                     Skis   70   2,500   2,000   4,000…

Consider the following data for two products of Vigano Manufacturing.  Activity Budgeted Cost Activity Driver Machine setup $ 16,000 (20 machine setups) Parts handling 12,800 (16,000 parts) Quality inspections 19,200 (100 inspections) Total budgeted overhead $ 48,000     Unit Information Product A Product B Units produced 1,600 units 320 units Direct materials cost $ 26 per unit $ 36 per unit Direct labor cost $ 46 per unit $ 56 per unit Direct labor hours 2 per unit 2.50 per unit 1. Using a plantwide overhead rate based on 4,000 direct labor hours, compute the total product cost per unit for each product.2. Consider the following additional information about these two products. If activity-based costing is used to allocate overhead cost, (a) compute overhead activity rates, (b) allocate overhead cost to Product A and Product B and compute overhead cost per unit for each, and (c) compute product cost per unit for each.  Actual Activity Usage Product A…