
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
expand_more
expand_more
format_list_bulleted
Question

Transcribed Image Text:Requ
Gable Company uses three activity cost pools. Each pool has a cost driver. Information for Gable Company follows:
Activity Cost Pools
Machining
Designing costs
Setup costs
Number of machine hours
Number of design hours
Number of batches
Suppose that Gable Company manufactures three products, A, B, and C. Information about these products follows:
Product A Product B Product C
26,000
2,800
40
Total Cost
of Pool
Cost Driver
$250,600 Number of machine hours
61,600 Number of design hours
66,402 Number of batches
Product A
Product B
Product C
Total Overhead
Assigned
36,000
1,600
170
Estimated
Cost Driver
71,600
7,000
465
9,600
2,600
255
Required:
1. Using activity proportions, determine the amount of overhead assigned to each product. (Do not round your intermediate
calculations. Round your final answers to nearest whole number.)
Expert Solution

This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by stepSolved in 6 steps

Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Conspicuous Limo uses activity-based costing for its two models of stretch Hummer limousines: Big and Too Big. There are three activity cost pools related to production, with estimated costs and expected activity as follows: Amount of Activity Activity Cost Pool Estimated Cost Activity cost driver Big Too Big Fabrication $181,500 Labor hours 600 500 Painting $650,000 Machine hours 1,600 300 Finishing $2,750,000 Units 470 530 Using the activity proportion method, how much of the finishing cost would be assigned to the Too Big model?arrow_forwardGable co uses 3 activity pools: Activity Pools total cost of pools cost driver estimated cost driver Machining 208,960 number of machine hours 65,300 designing costs 53,125 number of design hours 6,250 setup costs 68,400 number of batches 480 Gable co manufactures 3 products, manufactured are ,A,B,C: Product A Product B Product C Number of Machine hours 23,000 33,000 9,300 Number of design hours 2,500 1,450 2,300 Number of batches 40…arrow_forward19. Data concerning three of Scarf Corporation's activity cost pools appear below: h Activity Cost Pools Total Cost Assembling Products Designing Products Setting Up Batches $48,200 Total Activity 4,820 assembly hours 8,392 product design hours. $5,400 120 batch setups $864,376 Required: Compute the activity rates for each of the three cost pools. Show your work! giarrow_forward
- A-5arrow_forwardUsing ABC, the total manufacturing costs for product Regular is:arrow_forwardPetrillo Company produces engine parts for large motors. The company usesa standard cost system for production costing and control. The standard costsheet for one of its higher volume products (a valve) is as follows: Direct materials (7 lbs @$5,4) $37,80 Direct labor (1,75 lbs @$18) $31,50 Variable overhead (1,75 lbs @$4) $7 Fixed overhead (1,75 lbs @$3) $5,25 Standard unit cost $81,55 During the year, Petrillo had the following activity related to valve production:a. Production of valves totaled 20,600 units.b. A total of 135,400 pounds of direct materials was purchased at $5.36per pound.c. There were 10,000 pounds of direct materials in beginning inventory(carried at $5.40 per pound). There was no ending inventory. d. The company used 36,500 direct labor hours at a total cost of $656,270.e. Actual fixed overhead totaled $110,000.f. Actual variable overhead totaled $168,000.Petrillo produces all of its valves in a single plant. Normal activity is 20,000units per year. Standard…arrow_forward
- 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???arrow_forwardGable Company uses three activity pools. Each pool has a cost driver. Information for Gable Company follows: Total Cost of Pool $ 380, 120 86,400 74,672 Estimated Cost Driver 88,400 9,000 525 Activity Pools Machining Designing costs Setup costs E4-5 (Algo) Assigning Costs Using Activity Proportions [LO 4-5, 4-6] Suppose that Gable Company manufactures three products, A, B, and C. Information about these products follows: Product A 34,000 3,600 60 Number of machine hours Number of design hours Number of batches Cost Driver Number of machine hours Number of design hours Number of batches Product A Product B Product C Total Overhead Assigned Product B Product C 10,400 3,400 285 Required: 1. Using activity proportions, determine the amount of overhead assigned to each product. Note: Do not round your intermediate calculations. Round your final answers to nearest whole number. 44,000 2,000 180arrow_forwardA firm makes a range of running shoes. There are three models – Short; Middle; and Long distance. The products are aimed at different segments of the market. Product costs are computed using an overhead rate based on the labour hour method. Selling prices are set on full cost plus 20%. A unit refers to a pair of running shoes. The following information is available: Short distance Middle distance Long distance Direct material cost per unit $25 $35 $40 Labour hours per unit 2 hrs 2 hrs 2 hrs Labour rate per hour $12 $12 $12 Total labour hours used 120,000 hrs 24,000 hrs 16,000 hrs Total number of units 60,000 units 12,000 units 8,000 units Cost driver information: Short distance Middle distance Long distance No. of machine hours 60,000 48,000 48,000 No. of material orders 30 100 200 No. of sales orders 12 48 63 The total overhead costs for the business amount to $1.2…arrow_forward
arrow_back_ios
arrow_forward_ios
Recommended textbooks for you
- AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
- Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSONIntermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill EducationFinancial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education


Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,

Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON

Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education

Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education