Question
In: Accounting
Moorman Corporation has an activity-based costing system with three activity cost pools--Processing, Setting Up, and Other....
Moorman Corporation has an activity-based costing system with three activity cost pools--Processing, Setting Up, and Other. The company's overhead costs consist of equipment depreciation and indirect labor and are allocated to the cost pools in proportion to the activity cost pools' consumption of resources. Equipment depreciation totals $66,000 and indirect labor totals $4,000. Data concerning the distribution of resource consumption across activity cost pools appear below:
| Processing | Setting Up | Other | ||
| Equipment depreciation | 0.50 | 0.15 | 0.35 | |
| Indirect labor | 0.40 | 0.30 | 0.30 | |
Required:
Assign overhead costs to activity cost pools using activity-based costing.
Sthilaire Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.35 direct labor-hours. The direct labor rate is $7.80 per direct labor-hour. The production budget calls for producing 2,700 units in April and 2,600 units in May. The company guarantees its direct labor workers a 40-hour paid work week. With the number of workers currently employed, that means that the company is committed to paying its direct labor work force for at least 960 hours in total each month even if there is not enough work to keep them busy.
Required:
Prepare the direct labor budget for the next two months. (Round "labor-hours per unit" & "labor cost per hour" answers to 2 decimal places.)
Solutions
ekkarill92 answered 2 years agoRelated Solutions
Groleau Corporation has an activity-based costing system with three activity cost pools--Processing, Setting Up, and Other....
Groleau Corporation has an activity-based costing system with
three activity cost pools--Processing, Setting Up, and Other. The
company's overhead costs, which consist of factory utilities and
indirect labor, are allocated to the cost pools in proportion to
the activity cost pools' consumption of resources. Costs in the
Processing cost pool are assigned to products based on
machine-hours (MHs) and costs in the Setting Up cost pool are
assigned to products based on the number of batches. Costs in the
Other...
Moorman Corporation has an activity-based costing system with three activity cost pools--Processing, Setting Up, and Other....
Moorman Corporation has an activity-based costing system with
three activity cost pools--Processing, Setting Up, and Other. The
company's overhead costs consist of equipment depreciation and
indirect labor and are allocated to the cost pools in proportion to
the activity cost pools' consumption of resources. Equipment
depreciation totals $66,000 and indirect labor totals $4,000. Data
concerning the distribution of resource consumption across activity
cost pools appear below:
Processing
Setting Up
Other
Equipment depreciation
0.50
0.15
0.35
Indirect labor
0.40
0.30
0.30
Groleau Corporation has an activity-based costing system with three activity cost pools--Processing, Setting Up, and Other....
Groleau Corporation has an activity-based costing system with
three activity cost pools--Processing, Setting Up, and Other. The
company's overhead costs, which consist of factory utilities and
indirect labor, are allocated to the cost pools in proportion to
the activity cost pools' consumption of resources. Costs in the
Processing cost pool are assigned to products based on
machine-hours (MHs) and costs in the Setting Up cost pool are
assigned to products based on the number of batches. Costs in the
Other...
Groleau Corporation has an activity-based costing system with three activity cost pools--Processing, Setting Up, and Other....
Groleau Corporation has an activity-based costing system with
three activity cost pools--Processing, Setting Up, and Other. The
company's overhead costs, which consist of factory utilities and
indirect labor, are allocated to the cost pools in proportion to
the activity cost pools' consumption of resources. Costs in the
Processing cost pool are assigned to products based on
machine-hours (MHs) and costs in the Setting Up cost pool are
assigned to products based on the number of batches. Costs in the
Other...
Groleau Corporation has an activity-based costing system with three activity cost pools-- Processing, Setting Up, and...
Groleau Corporation has an activity-based costing system with
three activity cost pools--
Processing, Setting Up, and Other. The company's overhead costs,
which consist of factory utilities and indirect labor, are
allocated to the cost pools in proportion to the activity cost
pools' consumption of resources. Costs in the Processing cost pool
are assigned to products based on machine-hours (MHs) and costs in
the Setting Up cost pool are assigned to products based on the
number of batches. Costs in the...
Musich Corporation has an activity-based costing system with three activity cost pools--Machining, Setting Up, and Other....
Musich Corporation has an activity-based costing system with
three activity cost pools--Machining, Setting Up, and Other. The
company's overhead costs, which consist of equipment depreciation
and indirect labor, have been allocated to the cost pools already
and are provided in the table below.
Activity
Cost Pools
Machining
Setting Up
Other
Total
Equipment depreciation
$
9400
$
48,700
$
23,800
$
81,900
Indirect labor
4500
2900
4100
11,500
Total
$
13,900
$
51,600
$
27,900
$
93,400
Costs in the Machining...
Musich Corporation has an activity-based costing system with three activity cost pools--Machining, Setting Up, and Other....
Musich Corporation has an activity-based costing system with
three activity cost pools--Machining, Setting Up, and Other. The
company's overhead costs, which consist of equipment depreciation
and indirect labor, have been allocated to the cost pools already
and are provided in the table below.
Activity Cost Pools
Machining
Setting Up
Other
Total
Equipment depreciation
$
9400
$
48,700
$
23,800
$
81,900
Indirect labor
4500
2900
4100
11,500
Total
$
13,900
$
51,600
$
27,900
$
93,400
...
Corporation has an activity-based costing system with three activity cost pools—Processing, Supervising, and Other. In the...
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
$73,000
Indirect labor
$1,000
Distribution of Resource Consumption Across Activity Cost
Pools:
Processing
Supervising
Other
Equipment expense
20%
10%
70%
Indirect labor
20%
20%
60%
In...
Deemer Corporation has an activity-based costing system with three activity cost pools--Processing, Supervising, and Other. In...
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
$
128,000
Indirect labor
$
11,000
Distribution of Resource Consumption Across Activity Cost
Pools:
Activity Cost Pools
Processing
Supervising
Other
Equipment expense
0.20
0.60
0.20...
Ollivier Corporation has an activity-based costing system with three activity cost pools-Processing, Supervising, and Other. In...
Ollivier 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
$53,000
Indirect labor
$6,400
Distribution of Resource Consumption Across Activity
Cost Pools:
Activity Cost Pools
Processing
Supervising
Other
Equipment
expense
0.50
0.40
0.10...
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