Hanshaben Exercise 7-4 (Algo) Second-Stage Allocation [LO7-4]Klumper Corporation is a diversified manufacturer of industrial goods. The company's activity-basedcosting system contains the following six activity cost pools and activity rates:Activity Cost PoolSupporting direct laborMachine processingMachine setupsProduction ordersShipmentsProduct sustainingActivity Rates$ 10 per direct labor-hour$2 per machine-hour$40 per setup$ 170 per order$ 125 per shipment$ 875 per productActivity data have been supplied for the following two products:Number of units produced per yearDirect labor-hoursMachine-hoursMachine setupsProduction ordersShipmentsTotal Expected ActivityK425M672002,000925403,2003013313263333Product sustainingRequired:How much total overhead cost would be assigned to K425 and M67 using the activity-based costingsystem?Activity Cost PoolK425M67Supporting direct laborMachine processingMachine setupsProduction ordersShipmentsProduct sustainingTotal overhead cost

Name: Hanshaben Exercise 7-4 (Algo) Second-Stage Allocation [LO7-4]Klumper C
Uploaded: 2024-03-20T06:32:49.000Z
Channel: Bartleby
Description: Hanshaben Exercise 7-4 (Algo) Second-Stage Allocation [LO7-4]Klumper Corporation is a diversified manufacturer of industrial goods. The company's activity-basedcosting system contains the following six activity cost pools and activity rates:Activity

Overhead Means The Amount Of Expenses Incurred Indirectly To Produce The Goods. These Expenses…

Answered: Klumper Corporation is a diversified…

Business

Accounting

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:

Financial & Managerial Accounting

14th Edition

ISBN:9781337119207

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter18: Activity-Based Costing

Section: Chapter Questions

Problem 3ADM: Production run size and activity improvement Littlejohn, Inc. manufactures machined parts for the...

See similar textbooks

Similar questions

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…
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 Activity Rates Supporting direct labor $ 11 per direct labor-hour Machine processing $ 3 per machine-hour Machine setups $ 40 per setup Production orders $ 160 per order Shipments $ 125 per shipment Product sustaining $ 900 per product Activity data have been supplied for the following two products: Total Expected Activity K425 M67 Number of units produced per year 200 2,000 Direct labor-hours 1,150 50 Machine-hours 2,400 40 Machine setups 11 3 Production orders 11 3 Shipments 22 3 Product sustaining 3 3 Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system?
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 Number of units produced per year Direct labor-hours Machine-hours Activity Rates. $10 per direct labor-hour $3 per machine-hour $ 125 per shipment $ 775 per product Activity data have been supplied for the following two products: Machine setups Production orders Shipments Product sustaining $ 35 per setup $160 per order. Total Expected Activity K425 M67 200 925 2,600 13 13. 26 3 ,000 40 30 3 3 3 Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system?
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 $ 115 per shipment Product sustaining $ 850 per product 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 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 $ K425 Total Expected Activity K425 M67 2,000 30 20 0 $ 200 1,150 3,000 Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing…
Exercise 4-2 (Algo) Compute Activity Rates [LO4-2] [The following information applies to the questions displayed below.] Rustafson Corporation is a diversified manufacturer of consumer goods. The company's act the following seven activity cost pools: Activity Cost Pool Labor-related Machine-related Machine setups Production orders Product testing Packaging General factory Exercise 4-2 Part 1 (Algo) Activity Cost Pool Labor-related Machine-related Estimated Overhead Cost $ 17,200 $ 4,000 $ 18,000 $ 10,500 $ 27,600 $ 62,900 $ 57,600 Machine setups Production orders Product testing Packaging General factory Required: 1. Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal places.) Expected Activity 4,000 direct labor-hours 8,000 machine-hours Activity Rate per DLH per MH per setup per order per test per package per DLH 500 setups 300 orders 1,200 tests 3,700 packages 4,000 direct labor-hours
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.
Exercise 4-3 (Algo) Compute ABC Product Costs [LO4-3] Larner 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 Labor-related Machine-related Machine setups Production orders. $60.00 per setup $ 100.00 per order. Shipments $ 120.00 per shipment General factory $ 4.00 per direct labor-hour Cost and activity data have been supplied for the following products: Direct materials cost per unit Direct labor cost per unit Number of units produced per year Direct labor-hours Machine-hours Machine setups Production orders Shipments Activity Rates $5.00 per direct labor-hour $ 4.00 per machine-hour Unit product cost Total Expected Activity J78 J78 1,200 2,800 7 7 5 B52 40 20 4 4 4 Required: Compute the unit product cost of each product listed above. (Do not round intermediate calculations. Round your answers to 2 decimal places.) B52 J78 $ 3.50 $ 3.75 2,000…
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…
Problem 11-65 (Static) Reciprocal Cost Allocation - Outsourcing a Service Department (LO 11-4, 5) BluStar Company has two service departments, Administration and Accounting, and two operating departments, Domestic and International. Administration costs are allocated on the basis of employees, and Accounting costs are allocated on the basis of number of transactions. A summary of BluStar operations follows. Administration Accounting Domestic International Employees 25 45 180 Transactions 25,000 20,000 80,000 Department direct costs $360,000 144,000 936,000 $3,600,000 BluStar estimates that the cost structure in its operations is as follows. Administration Accounting Domestic International Variable costs $150,000 36,000 678,000 $2,562,000 Fixed costs 210,000 108,000 258,000 1,038,000 Total costs $360,000 144,000 936,000 $3,600,000 Avoidable fixed…
Wrappers Tape makes two products: Simple and Removable. It estimates it will produce 369,991 units of Simple and 146,100 of Removable, and the overhead for each of its cost pools is as follows: It has also estimated the activities for each cost driver as follows: Â How much is the overhead allocated to each unit of Simple and Removable?
(Appendix 4B) Sequential Method of Support Department Cost Allocation Refer to Exercise 4-51 for data. Now assume that Stevenson uses the sequential method to allocate support department costs to the operating divisions. General Factory is allocated first in the sequential method for the company. Required: 1. Calculate the allocation ratios for Power and General Factory. (Note: Carry these calculations out to four decimal places.) 2. Allocate the support service costs to the operating divisions. (Note: Round all amounts to the nearest dollar.) 3. Assume divisional overhead rates are based on direct labor hours. Calculate the overhead rate for the Battery Division and for the Small Motors Division. (Note: Round overhead rates to the nearest cent.)
Production run size and activity improvement Littlejohn, Inc. manufactures machined parts for the automotive industry. The activity cost associated with Part XX-10 is as follows: Activity Activity-Base Usage Activity Rate = Activity Cost Fabrication 250 dlh 80per dlh 20,000 Setup 10 setups 80 per setup 800 Production control 10 prod, runs 30 per prod, run 300 Moving 10 moves 25 per move 250 Total activity cost per unit 21,350 Estimated units of production 500 Activity cost per unit 42.70 Each unit requires 30 minutes of fabrication direct labor. Moreover, part XX-10 is manufactured in production run sizes of 50 units. Each production run is set up, scheduled (production control), and moved as a batch of 50 units. Management is considering improvements in the setup, production control, and moving activities in order to cut the production run sizes by half. As a result, the number of setups, production runs, and mows will double from 10 to 20. Such improvements are expected to speed the companys ability to respond to customer orders. Setup is reengineered so that it takes 60% of the original cost per setup. Production control software will allow production control effort and cost per production run to decline by 60%. Moving distance was reduced by 40%, thus reducing the cost per mow by the same amount. A. Determine the revised activity cost per unit under the proposed changes. B. Did these improvements reduce the activity cost per unit? C. What cost per unit for setup would be required for the solution in (A) to equal the base solution?