Required information[The following information applies to the questions displayed below.]Adria Company recently implemented an activity-based costing system. At the beginning of the year, management madethe following estimates of cost and activity in the company's five activity cost pools:ExpectedActivityOverheadExpectedActivity6,500 DLHS2,400 orders700 receipts1,400 relays41,000 MHsActivity Cost PoolLabor-relatedPurchase ordersMeasureCost$ 58,500$ 12,000$ 11, 200$ 14,000$369, 000Direct labor-hoursMaterial receiptsRelay assemblyGeneral factoryNumber of ordersNumber of receiptsNumber of relaysMachine-hoursRequired:1. Compute the activity rate for each of the activity cost pools.Activity Cost PoolActivity RateLabor-relatedper DLHPurchase ordersper orderMaterial receiptsper receiptRelay assemblyper relayGeneral factoryper MH

Labor-related activity rate = Labor related overhead cost / Direct labor-hours Purchase orders…

Required information [The following information applies to the questions displayed below.] Adria Company recently implemented an activity-based costing system. At the beginning of the year, management made the following estimates of cost and activity in the company's five activity cost pools: Expected Activity Overhead Expected Activity 6,500 DLHS 2,400 orders 700 receipts 1,400 relays 41,000 MHs Activity Cost Pool Labor-related Measure Cost $ 58,500 $ 12,000 $ 11,200 $ 14,000 $369,000 Direct labor-hours Purchase orders Number of orders Material receipts Relay assembly General factory Number of receipts Number of relays Machine-hours Required: 1. Compute the activity rate for each of the activity cost pools. Activity Cost Pool Activity Rate Labor-related per DLH Purchase orders per order Material receipts per receipt Relay assembly per relay General factory per MH

Required information [The following information applies to the questions displayed below.] Adria Company recently implemented an activity-based costing system. At the beginning of the year, management made the following estimates of cost and activity in the company's five activity cost pools: Expected Activity Overhead Expected Activity 6,500 DLHS 2,400 orders 700 receipts 1,400 relays 41,000 MHs Activity Cost Pool Labor-related Measure Cost $ 58,500 $ 12,000 $ 11,200 $ 14,000 $369,000 Direct labor-hours Purchase orders Number of orders Material receipts Relay assembly General factory Number of receipts Number of relays Machine-hours Required: 1. Compute the activity rate for each of the activity cost pools. Activity Cost Pool Activity Rate Labor-related per DLH Purchase orders per order Material receipts per receipt Relay assembly per relay General factory per MH

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter4: Activity-based Costing

Section: Chapter Questions

Problem 19E

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Cicleta Manufacturing has four activities: receiving materials, assembly, expediting products, and storing goods. Receiving and assembly are necessary activities; expediting and storing goods are unnecessary. The following data pertain to the four activities for the year ending 20x1 (actual price per unit of the activity driver is assumed to be equal to the standard price): Required: 1. Prepare a cost report for the year ending 20x1 that shows value-added costs, non-value-added costs, and total costs for each activity. 2. Explain why expediting products and storing goods are non-value-added activities. 3. What if receiving cost is a step-fixed cost with each step being 1,500 orders whereas assembly cost is a variable cost? What is the implication for reducing the cost of waste for each activity?
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Required information [The following information applies to the questions displayed below.] Rusties Company recently implemented an activity-based costing system. At the beginning of the year, management made the following estimates of cost and activity in the company's five activity cost pools: Activity Cost Pool Labor-related Purchase orders Product testing Template etching General factory Activity Cost Pool Labor-related (DLHS) Activity Measure Product A Product B Product C Product D Direct labor-hours Number of orders Number of tests Number of templates Machine-hours Total Overhead Cost Expected Overhead Cost $ 30,115 $ 2,320 $ 6,930 $ 870 $ 65,100 2. The expected activity for the year was distributed among the company's four products as follows: Product A 625 30 190 Expected Activity 1,585 DLHS Product B 160 Purchase orders (orders) 190 Product testing (tests) 55 Template etching (templates) 17 3 General factory (MHS) 3,600 1,700 2,300 Using the ABC data, determine the total amount…
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, Activity Measure, [[Expected], [Overhead Cost]], Expected Activity], [Labor-related, Direct labor - hours, 270, 900, 30, 100 DLHS], [Purchase order's, Number of orders, 11,745,261 orders], [Parts management, Number of part types, 78,570,97 part types], [Board etching, Number of boards, 72, 400, 1,810 boards], [ General factory, Machine - hours, 212, 400, 17,700MHs
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[The following information applies to the questions displayed below.] Adria Company recently implemented an activity-based costing system. At the beginning of the year, management made the following estimates of cost and activity in the company's five activity cost pools: Expected Activity Overhead Expected Activity 6,500 DLHS 2,400 orders 700 receipts 1,400 relays 41,000 MHS Activity Cost Pool Labor-related Measure Cost $ 58,500 $ 12,000 $ 11, 200 $ 14,000 $369,000 Direct labor-hours Purchase orders Number of orders Material receipts Relay assembly General factory Number of receipts Number of relays Machine-hours 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) Materials receipts (receipts) Relay assembly (relays) General factory (MHs) Product A Product B Product C Product D 2,400 500 2,600 720 700 800 850 330 400 118 182 340 340 280 440 16,250 5,400…
Required information [The following information applies to the questions displayed below.] Rusties Company recently implemented an activity-based costing system. At the beginning of the year, management made the following estimates of cost and activity in the company's five activity cost pools: Activity Cost Pool Labor-related Purchase orders Product testing Template etching General factory Activity Cost Pool Labor-related (DLHs) Purchase orders (orders) Product testing (tests) Template etching (templates) General factory (MHs) Activity Measure. Direct labor-hours Number of orders Number of tests Number of templates Machine-hours Product A Product B Product C Product D Total Overhead Cost Expected Overhead Cost 2. The expected activity for the year was distributed among the company's four products as follows: Product A 500 60 260 0 3,900 $ 40,320 $1,650 $ 7,700 $ 1,260 $ 69,000 Expected Activity 2,240 DLHS Expected Activity Product B 140 120 60 28 3,200 550 orders 385 tests 45…
Required information [The following information applies to the questions displayed below.] Rusties Company recently implemented an activity-based costing system. At the beginning of the year, management made the following estimates of cost and activity in the company's five activity cost pools: Activity Cost Pool Labor-related Purchase orders Product testing Template etching General factory Required: 1. Compute the activity rate for each of the activity cost pools. Activity Cost Pool Labor-related Activity Measure Direct labor-hours Number of orders Number of tests Number of templates Machine-hours Purchase orders Product testing Template etching General factory Activity Rate per DLH per order per test per template per MH < Prev Expected Overhead Cost $ 18,000 $ 1,050 $ 3,500 $ 700 $ 50,000 5 of 5 Expected Activity 2,000 DLHS 525 orders 350 tests 28 templates 10,000 MHS ww Next
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 Activity Measure ExpectedOverhead Cost Expected Activity Labor-related Direct labor-hours $ 148,000 29,600 DLHs Purchase orders Number of orders $ 15,180 253 orders Parts management Number of part types $ 85,680 102 part types Board etching Number of boards $ 99,550 1,810 boards General factory Machine-hours $ 162,400 20,300 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 Product A Product B Product C Product D Labor-related (DLHs) 7,900 12,800 3,900 5,000 Purchase orders (orders) 75 39 45 94 Parts management (part types) 30 13…
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 Activity Measure Expected Overhead Cost Expected Activity Labor-related Direct labor-hours $ 184,800 30,800 DLHs Purchase orders Number of orders $ 6,900 230 orders Parts management Number of part types $ 81,120 104 part types Board etching Number of boards $ 45,000 1,800 boards General factory Machine-hours $ 150,300 16,700 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: Activity Cost Pool Expected Activity Product A Product B Product C Product D Labor-related (DLHs) 7,000 14,300 4,400 5,100 Purchase orders (orders) 58 26 46 100 Parts management (part types) 30 18 37 19 Board etching (boards) 500 720 580 0 General factory…
Extreme Manufacturing Company provides the following ABC costing information:ActivitiesTotal CostsActivity - cost driversAccount inquiry$390, 00013, 000 hoursAccount billing$ 275,0005, 000, 000 linesAccount verification accounts$130, 50060, 000 accountsCorrespondence letters $22, 0004, 000 lettersTotal costs$817,500 The above activities are used by Departments A and B (among other departments) as follows: Department ADepartment BAccount inquiry hours2, 500 hours4, 000 hoursAccount billing lines800, 000 lines650, 000 linesAccount verification accounts9, 000 accounts7, 000 accountsCorrespondence letters2, 000 letters2, 400 letters How much of correspondence costs will be assigned to Department A ? Question 12 Select one:A. $49, 500B. $11, 242C. $11,000D. $22,000