used n nce supplied n nce Cost Driver Rate $6.00 per lift-hour $4.50 per job $ 18,000 $ 2,700 e from truck repair totaled $32,000. Cost Driver Volume 2,460 lift-hours 480 jobs
used n nce supplied n nce Cost Driver Rate $6.00 per lift-hour $4.50 per job $ 18,000 $ 2,700 e from truck repair totaled $32,000. Cost Driver Volume 2,460 lift-hours 480 jobs
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 18E
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The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
Topic Video
Question
![Byron Truck Repair uses a specialized hydraulic lift to work on trucks and busses. Data on the lift and its usage follow:
Resources used
Operation
Maintenance
Resources supplied
Operation
Maintenance
Sales revenue from truck repair totaled $32,000.
Required A Required B
Required:
a. Prepare a traditional income statement.
b. Prepare an activity-based income statement.
Prepare a traditional income statement.
Truck repair sales
Operation costs
Maintenance costs
Cost Driver Rate
$6.00 per lift-hour
$4.50 per job
Complete this question by entering your answers in the tabs below.
$ 18,000
$ 2,700
Traditional Income Statement
Required A Required B
b. Prepare an activity-based income statement.
Truck repair sales
Costs
Prepare an activity-based income statement.
Volume related - Operation
Batch related Maintenance
Total costs
Truck repair operating profits
Complete this question by entering your answers in the tabs below.
Activity-Based Income Statement
Resources
Used
$
0
Unused
Resource
Capacity
0 $
Cost Driver Volume
2,460 lift-hours
480 jobs
0 $
Resources
Supplied
0
$
0
0](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7d1b6bc7-22be-4d7a-9314-f8909e710633%2F3d2b54f5-7cca-49f3-92e5-5d1b05ffcb8a%2Fcfucicm_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Byron Truck Repair uses a specialized hydraulic lift to work on trucks and busses. Data on the lift and its usage follow:
Resources used
Operation
Maintenance
Resources supplied
Operation
Maintenance
Sales revenue from truck repair totaled $32,000.
Required A Required B
Required:
a. Prepare a traditional income statement.
b. Prepare an activity-based income statement.
Prepare a traditional income statement.
Truck repair sales
Operation costs
Maintenance costs
Cost Driver Rate
$6.00 per lift-hour
$4.50 per job
Complete this question by entering your answers in the tabs below.
$ 18,000
$ 2,700
Traditional Income Statement
Required A Required B
b. Prepare an activity-based income statement.
Truck repair sales
Costs
Prepare an activity-based income statement.
Volume related - Operation
Batch related Maintenance
Total costs
Truck repair operating profits
Complete this question by entering your answers in the tabs below.
Activity-Based Income Statement
Resources
Used
$
0
Unused
Resource
Capacity
0 $
Cost Driver Volume
2,460 lift-hours
480 jobs
0 $
Resources
Supplied
0
$
0
0
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