Question
In: Accounting
1. A company has two products: A1 and B2. It uses activity-based costing and has prepared...
1. A company has two products: A1 and B2. It uses activity-based
costing and has prepared the following analysis showing budgeted
cost and activity for each of its three activity cost
pools:
| Budgeted Activity | |||||||||
| Activity Cost Pool |
Budgeted Cost |
Product A1 | Product B2 | ||||||
| Activity 1 | $ | 63,000 | 2,700 | 6,300 | |||||
| Activity 2 | $ | 78,000 | 3,740 | 6,260 | |||||
| Activity 3 | $ | 110,000 | 8,700 | 2,300 | |||||
Annual production and sales level of Product A1 is 9,980 units, and
the annual production and sales level of Product B2 is 23,810
units. What is the approximate overhead cost per unit of Product B2
under activity-based costing?
2.
A company has two products: A and B. It uses activity-based
costing and has prepared the following analysis showing budgeted
cost and activity for each of its three activity cost
pools:
| Budgeted Activity | |||||||||
| Activity Cost Pool |
Budgeted Cost |
Product A | Product B | ||||||
| Activity 1 | $ | 106,000 | 4,900 | 4,700 | |||||
| Activity 2 | $ | 81,000 | 6,400 | 7,400 | |||||
| Activity 3 | $ | 131,000 | 4,400 | 7,150 | |||||
Annual production and sales level of Product A is 36,200 units, and
the annual production and sales level of Product B is 71,450 units.
What is the approximate overhead cost per unit of Product A under
activity-based costing?
3.
Lake Erie Company uses a plantwide overhead rate with machine
hours as the allocation base. Next year, 627,143 units are expected
to be produced taking 0.70 machine hours each. How much overhead
will be assigned to each unit produced given the following
estimated amounts?
| Estimated: | Department 1 | Department 2 | |||||
| Manufacturing overhead costs | $ | 3,121,500 | $ | 1,541,000 | |||
| Direct labor hours | 157,000 | DLH | 257,000 | DLH | |||
| Machine hours | 257,000 | MH | 182,000 | MH | |||
4.
Bond Company uses a plantwide overhead rate with direct labor
hours as the allocation base. Use the following information to
solve for the amount of direct labor hours estimated per unit of
product G2.
| Direct material cost per unit of G2 | $ | 7 | |
| Total estimated manufacturing overhead | $ | 280,000 | |
| Total cost per unit of G2 | $ | 32 | |
| Total estimated direct labor hours | 160,000 | DLH | |
| Direct labor cost per unit of G2 | $ | 5.25 | |
Solutions
ekkarill92 answered 1 year agoRelated Solutions
A company has two products: A1 and B2. It uses activity-based costing and has prepared the...
A company has two products: A1 and B2. It uses activity-based
costing and has prepared the following analysis showing budgeted
cost and activity for each of its three activity cost
pools:
Budgeted Activity
Activity
Cost
Pool
Budgeted
Cost
Product A1
Product B2
Activity 1
$
49,000
1,300
4,900
Activity 2
$
64,000
2,340
4,860
Activity 3
$
82,000
7,300
900
Annual production and sales level of Product A1 is 8,580 units, and
the annual production and sales level of Product...
A company has two products: A and B. It uses activity-based costing and has prepared the...
A company has two products: A and B. It uses activity-based
costing and has prepared the following analysis showing budgeted
cost and activity for each of its three acivity cot pools.
Cost Pool
Budgeted Cost
Product A
Product B
Activity 1
$87,000
3,000
2,800
Activity 2
$62,000
4,500
5,500
Activity 3
$93,000
2,500
5,250
Annual Production and sales level of Product A is, 34,300 units,
and the annual production and sales level of Product B is 69,550
Units. What is...
Jennifer Company has two products: A and B. The company uses activity-based costing
Jennifer Company has two products: A and B. The company uses activity-based costing. The estimated total cost and expected activity for each of the company's three activity cost pools are as follows: The activity rate under the activity based costing system for Supporting customers is closest to:
Assume a company that uses activity-based costing (ABC) has only two products – A and B....
Assume a company that uses activity-based costing (ABC) has only
two products – A and B. The company does not have any
organization-sustaining activities or unused capacity costs. The
company’s total manufacturing overhead cost of $56,000 has been
allocated to the three activities shown below:
Setups
Machining
Packing Orders
Activity measure quantity: Product A
20
1,000
150
Activity measure quantity: Product B
20
?
350
Overhead cost per activity cost pool
?
?
$
10,000
Activity rate
$
150
per...
Abel Company uses activity-based costing. The company has two products: A and B. The annual production...
Abel Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A is 200 units and of Product B is 400 units. There are three activity cost pools, with estimated costs and expected activity as follows: Expected ActivityActivity Cost PoolEstimated CostProduct AProduct BTotalActivity 1$16,660600100700Activity 218,4501,1007001,800Activity 39,7316016022022. The cost per unit of Product A is closest to which of the following? A. $27.91. B. $56.38. C. $141.04. D. $70.52.
Lindsey Company uses activity-based costing. The company has two products: A and B. The annual production...
Lindsey Company uses activity-based costing. The company has two
products: A and B. The annual production and sales of Product A is
9,000 units and of Product B is 8,000 units. There are three
activity cost pools, with total cost and total activity as
follows:
Total
Activity
Activity Cost
Pool
Total Cost
Product A
Product B
Total
Activity 1
$31,000
100
520
620
Activity 2
$46,287
860
250
1,110
Activity 3
$156,750
840
3,910
4,750
The activity-based costing cost per...
1.) A company uses activity-based costing to determine the costs of its three products: A, B,...
1.) A company uses activity-based costing to determine the costs
of its three products: A, B, and C. The budgeted cost and activity
for each of the company's three activity cost pools are shown in
the following table:
Budgeted Activity
Activity Cost Pool
Budgeted Cost
Product A
Product B
Product C
Activity 1
$
81,000
7,100
10,100
21,100
Activity 2
$
56,000
8,100
16,100
9,100
Activity 3
$
104,000
3,600
2,100
2,725
How much overhead will be assigned to Product...
4) X Company makes two products, A and B, and uses an activity-based costing overhead allocation...
4) X Company makes two products, A and B, and uses an
activity-based costing overhead allocation system, with three cost
pools and three cost drivers. Budgeted costs and driver information
for 2017 were as follows: Cost Pool 1 Cost Pool 2 Cost Pool 3
Budgeted costs $113,000 $53,000 $31,000 Cost Drivers Product A
84,000 62,000 75,000 Product B 63,000 54,000 47,000
What was the allocation to Product B in 2017?
Plaid Manufacturing Co. produces two products: G1 and M1. The company uses an activity based costing...
Plaid Manufacturing Co. produces two products: G1 and M1. The
company uses an activity based costing system. The following are
the activities, budgeted total cost and cost drivers per activity
for the year 20x9:
Activity
Budgeted Cost
Cost Base
Cost Base Volume
Assembly
$861050
# of DL hours
36332
Inspection
$669581
# of units
20525
Plaid Manufacturing has budgeted to produce 3,000 units of G1.
G1 requires 17790 hours of direct labour.
What is the overhead cost per unit for...
SCS Co. uses activity-based costing in their manufacturing process. The company produces two products, ABC and...
SCS Co. uses activity-based costing in their manufacturing
process. The company produces two products, ABC and XYZ. SCS has
provided their costing department the following information from
this year’s budget relating to the production of these two
products:
ABC
XYZ
Units to be produced
4,000
6,000
Machine-hours expected
100
200
Direct labor-hours expected
200
300
Materials handling (number of moves)
60
70
Machine setups (number of setups)
20
15
The following costs are expected to be incurred throughout the
year,...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Multistep problem that I'm confused on the entire thing: A) The addition of 5E-3 total moles...
- What are interjurisdictional externalities? Identify the problems created for a federal system by interjurisdictional externalities.
- Describe Trader Joe's key business functions (excluding "logistics") and the functional strategies as they relate to...
- At week 24 of a project to shoot a television commercial what should the expenditures be?...
- Explain whether acid can catalyze each of the following reactions; i.e., whether the reaction is faster...
- Questions: How does Andrew Carnegie justify the contrast between the wealthy and the working poor? Provide...
- As you go through your daily activities, look for examples of people engaged in conflict. You...
ADVERTISEMENT