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 Shipments General factory Activity Rates $ 7.00 per direct labor-hour $7.00 per nachine-hour $30.00 per setup $ 200.00 per order $140.00 per shipment $7.00 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 Total Expected Activity 378 852 Direct labor-hours 1,200 30 Machine-hours 2,200 50 Machine setups 6 1 Production orders 5 1 7 378 $ 5.50 $ 4.75 4,000 852 $32.00 $ 9.00 100 Shipments Required: Compute the unit product cost of each product listed above. (Do not round intermediate calculations. Round your answers to 2 decimal places.) J78 B52 Unit product cost

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 Shipments General factory Activity Rates $ 7.00 per direct labor-hour $7.00 per nachine-hour $30.00 per setup $ 200.00 per order $140.00 per shipment $7.00 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 Total Expected Activity 378 852 Direct labor-hours 1,200 30 Machine-hours 2,200 50 Machine setups 6 1 Production orders 5 1 7 378 $ 5.50 $ 4.75 4,000 852 $32.00 $ 9.00 100 Shipments Required: Compute the unit product cost of each product listed above. (Do not round intermediate calculations. Round your answers to 2 decimal places.) J78 B52 Unit product cost

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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 $600,000 Selling and administrative expenses 220,000 Total $820,000 Distribution of Resource Consumption: Activity Cost Pools Order Size Customer Support Other Total Manufacturing overhead 15% 75% 10% 100% Selling and administrative expenses 60% 20% 20% 100% 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. How much cost, in total, would be allocated in the first-stage allocation to the Order Size activity cost pool? Multiple Choice $123,000 $222,000 $307,500 $492,000
Sultan Company uses an activity-based costing system. At the beginning of the year, the company made the following estimates of cost and activity for its five activity cost pools: Activity Cost Pool Labor-related Purchase orders Parts management Board etching General factory Activity Measure Direct labor-hours Number of orders Number of part types Number of boards Machine-hours Expected Overhead Cost $ 233,600 $ 9,360 $ 80,000 $59,850 $ 236,500 Expected Activity 29,200 DLHS 234 orders 100 part types 1,710 boards 21,500 MHS Required: 1. Compute the activity rate for each of the activity cost pools. 2. The expected activity for the year was distributed among the company's four products as follows: Expected Activity Activity Cost Pool Labor-related (DLHS) Purchase orders (orders) Parts management (part types) Board etching (boards) General factory (MHs) Product A Product B Product C Product D 4,400 74 25 430 3,300 16,100 29 3,300 50 44 530 5,400 81 13 18 750 8,100 3,600 6,500 Using the…
Foam Products, Incorporated, makes foam seat cushions for the automotive and aerospace industries. The company's activity-based costing system has four activity cost pools, which are listed below, along with their activity measures and activity rates: Activity Cost Pool Supporting direct labor. Batch processing Order processing Customer service Activity Measure Number of direct labor-hours Number of batches Number of orders Number of customers Activity Rate $10 per direct labor-hour $90 per batch $286 per order $ 2,602 per customer The company just completed a single order from Interstate Trucking for 2,800 custom seat cushions. The order was produced in four batches. Each seat cushion required 0.3 direct labor-hours. The selling price was $141.10 per unit, the direct materials cost was $102 per unit, and the direct labor cost was $14.20 per unit. This was Interstate Trucking's only order during the year. Required: Calculate the customer margin on sales to Interstate Trucking for the…
A company 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:
Bluefield Corp. has two product lines, A and B. Bluefield has identified the following information about its overhead and potential cost drivers: Total overhead $64,400 Cost drivers Number of labor hours 2,700 Number of machine hours 40,000 Required:1. Suppose Bluefield Corp. uses a traditional costing system with number of labor hours as the cost driver. Determine the amount of overhead assigned to each product line if Product A requires 62 percent of the labor hours and Product B requires 38 percent. 2. Suppose Bluefield uses a traditional costing system with machine hours as the cost driver. Determine the amount of overhead assigned to each product line if Product A consumes 17,800 machine hours and Product B consumes 22,200.
Doles Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products. Activity Cost Pools Setting up batches Processing customer orders Assembling products Data concerning two products appear below: Number of batches Number of customer orders Number of assembly hours Total overhead cost Activity Rate $69.22 per batch $26.28 per customer order $ 12.11 per assembly hour Product K52W 65 45 418 Required: How much overhead cost would be assigned to each of the two products using the company's activity-based costing system? (Round your intermediate calculations and final answers to 2 decimal places.) Product K52W Product X94T Product X94T 52 30 161
Deemer Corporation has an activity-based costing system with three activity cost pools--Processing, Supervising, and Other. In the first stage allocations, costs in the two overhead accounts, equipment expense and indirect labor, are allocated to the three activity cost pools based on resource consumption. Data used in the first stage allocations follow: Overhead costs: Equipment expense $ 125,000 Indirect labor $ 5,200 Distribution of Resource Consumption Across Activity Cost Pools: Activity Cost Pools Processing Supervising Other Equipment expense 0.40 0.40 0.20 Indirect labor 0.40 0.40 0.20 Processing costs are assigned to products using machine-hours (MHs) and Supervising costs are assigned to products using the number of batches. The costs in the Other activity cost pool are not assigned to products. Activity data for the company's two products follow: Activity: MHs (Processing) Batches (Supervising) Product F6 16,400 910 Product X0 1,490 1,350 Total 17,890 2,260 What is…
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 $ 160 per order Shipments $125 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 Rates $ 11 per direct labor-hour $2 per machine-hour $50 per setup 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 M67 200 1,150 3,200 15 15 30 3 Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system? 40 30 3 3 3 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 Activity Rates Supporting direct labor $ 8 per direct labor-hour Machine processing $ 4 per machine - hour Machine setups $ 40 per setup Production orders $ 150 per order Shipments $ 120 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 925 40 Machine - hours 2, 600 30 Machine setups 11 1 Production orders 11 1 Shipments 22 1 Product sustaining 1 1
A company has provided the following data from its activity-based costing accounting system: Indirect factory wages Factory equipment depreciation S 27,000 $ 204,000 Distribution of Resource Consumption across Activity Cost Pools: Activity Cost Pools Indirect factory wages Factory equipment depreciation Product Processing 48% 25% Customer Orders Other 38 128 Total 100% 100% 63% The "Other" activity cost pool consists of the costs of idle capacity and organization-sustaining costs that are not assigned to products. Required: a. Determine the total amount of indirect factory wages and factory equipment depreciation costs that would be allocated to the Product Processing activity cost pool. b. Determine the total amount of indirect factory wages and factory equipment depreciation costs that would NOT be assigned to products. Complete this question by entering your answers in the tabs below. Required A Required B Determine the total amnount of indirect factory wages and factory equipment…
A Corporation uses activity-based costing to assign overhead costs to products. Overhead costs have already been allocated to the company's three activity cost pools as follows: Machining, $12,100; Order Filling, $16,800; and Other, $13,500. Machining costs are assigned to products using machine-hours (MHs) and Order Filling costs are assigned to products using the number of orders. The costs in the Other activity cost pool are not assigned to products. Activity data appear below:ICO/4243 0 MHS (Machining) 5,800 4,200 Product P17 Product V29 Q. What is the overhead cost assigned to Product P17 under activity-based costing? Answer. (Click to select) (Click to select) None of the answers are correct. $10,122 $12,058 $16,842 $18,778 Orders (Order Filling) 300 700
Howard Corporation manufactures two products: Product B820 and Product P99Y. The company uses a plantwide overhead rate based on direct labor-hours. It is considering implementing an activity-based costing (ABC) system that allocates its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products B820 and P99Y. Activity Cost Pool Activity Measure Machining Machine setups Product design Order size Activity Measure Machine-hours Number of setups Number of products Direct labor-hours O $704,200 $301,800 Machine-hours Number of setups Number of products Direct labor-hours O $610,000 O $503,000 Total Cost $ 330,000 $ 300,000 S 46,000 2 products $ 330,000 10,000 DLHs Total Activity 15,000 MHs 500 setups Product B820 7,000 200 1 3,000 Using the plantwide overhead rate, how much manufacturing overhead cost would be allocated to Product B820? Product P99Y 8,000 300 1 7,000