Question
In: Accounting
In an activity-based costing system, the first step in assigning costs is to a. accumulate costs...
In an activity-based costing system, the first step in assigning costs is to
| a. |
accumulate costs for each activity. |
|
| b. |
identify the appropriate activities for each function. |
|
| c. |
separate nonvalue-adding activities from value-adding activities. |
|
| d. |
analyze all nonvalue-adding activities to determine if they are necessary support areas. |
Harrah Company provided the following information for the month of August:
Beginning cash balance $ 70,000
Cash receipts 460,000
Cash disbursements 525,000
Harrah’s policy is to keep a minimum end of the month cash balance of $30,000. How much will Harrah’s need to borrow during August?
| a. |
$20,000 |
|
| b. |
$25,000 |
|
| c. |
$10,000 |
|
| d. |
$0 |
Bay Company had actual production of 220 units in the month of April. Budgeted standard fixed overhead costs were $20,000, based on normal capacity of 800 direct labor hours per month. The time standard was 4 direct labor hours per unit. The fixed overhead volume variance for April was
| a. |
$3,600 F |
|
| b. |
$3,600 U |
|
| c. |
$2,000 F |
|
| d. |
$2,000 U |
Solutions
ekkarill92 answered 2 years agoRelated Solutions
What costs are affected by an Activity Based Costing system? By a Traditional Absorption Costing system?
What costs are affected by an Activity Based Costing system? By
a Traditional Absorption Costing system?
What costs are affected by an Activity Based Costing system? By a Traditional Absorption Costing system?
What costs are affected by an Activity Based Costing system? By
a Traditional Absorption Costing system?
Lysiak Corporation uses an activity based costing system to assign overhead costs to products. In the...
Lysiak Corporation uses an activity based costing system to
assign overhead costs to products. In the first stage, two overhead
costs--equipment depreciation and supervisory expense-are allocated
to three activity cost pools--Machining, Order Filling, and
Other--based on resource consumption. Data to perform these
allocations appear below:
Overhead costs:
Equipment depreciation
$
47,000
Supervisory expense
$
6,000
Distribution of Resource Consumption Across Activity Cost
Pools:
Activity Cost Pools
Machining
Order Filling
Other
Equipment depreciation
0.60
0.10
0.30
Supervisory expense
0.60
0.20
0.20...
Part 3: Activity-Based Costing Banquet Services uses activity-based costing to compute the costs of their catered...
Part 3: Activity-Based Costing
Banquet Services uses activity-based costing to compute the costs
of
their catered parties. Each party is limited to 40 guests and
requires five
people to serve and clean up. Two types of parties, an afternoon
picnic
and an evening formal dinner, are offered. The breakdown of the
costs
follows:
Activities (and cost drivers) Afternoon Picnic Formal Dinner
Advertising (parties) $175 per party $100 per party
Planning (parties) $50 per party $75 per party
Renting equipment $75...
Doede Corporation uses activity-based costing to compute product margins. In the first stage, the activity-based costing...
Doede Corporation uses activity-based costing to compute product
margins. In the first stage, the activity-based costing system
allocates two overhead accounts--equipment depreciation and
supervisory expense--to three activity cost pools--Machining, Order
Filling, and Other--based on resource consumption. Data to perform
these allocations appear below:
Overhead costs:
Equipment depreciation
$
82,000
Supervisory expense
$
12,100
Distribution of Resource Consumption Across Activity Cost
Pools:
Activity Cost Pools
Machining
Order Filling
Other
Equipment depreciation
0.60
0.30
0.10
Supervisory expense
0.60
0.20
0.20
In the...
Doede Corporation uses activity-based costing to compute product margins. In the first stage, the activity-based costing...
Doede Corporation uses activity-based costing to compute product
margins. In the first stage, the activity-based costing system
allocates two overhead accounts--equipment depreciation and
supervisory expense--to three activity cost pools--Machining, Order
Filling, and Other--based on resource consumption. Data to perform
these allocations appear below:
Overhead costs:
Equipment depreciation
$
30,000
Supervisory expense
$
14,800
Distribution of Resource Consumption Across Activity Cost
Pools:
Activity Cost Pools
Machining
Order Filling
Other
Equipment depreciation
0.50
0.40
0.10
Supervisory expense
0.50
0.30
0.20
In the...
Dodo Inc., uses activity-based costing to determine product margins. In the first stage, the activity-based costing...
Dodo Inc., uses activity-based costing to determine product
margins. In the first stage, the activity-based costing system
allocates two overhead accounts--equipment depreciation and
supervisory expense--to three activity cost pools--Machining, Order
Filling, and Other--based on resource consumption. Data pertinnent
to perform these allocations appears below:
Overhead costs:
Equipment depreciation
$
107,000
Supervisory expense
$
9,900
Distribution of Resource Consumption Across Activity Cost
Pools:
Activity Cost Pools
Machining
Order Filling
Other
Equipment depreciation
0.60
0.30
0.10
Supervisory expense
0.60
0.20
0.20
In...
Doede Corporation uses activity-based costing to compute product margins. In the first stage, the activity-based costing...
Doede Corporation uses activity-based costing to compute product
margins. In the first stage, the activity-based costing system
allocates two overhead accounts--equipment depreciation and
supervisory expense--to three activity cost pools--Machining, Order
Filling, and Other--based on resource consumption. Data to perform
these allocations appear below:
Overhead costs:
Equipment depreciation
$
103,000
Supervisory expense
$
13,100
Distribution of Resource Consumption Across Activity Cost
Pools:
Activity Cost Pools
Machining
Order Filling
Other
Equipment depreciation
0.60
0.20
0.20
Supervisory expense
0.60
0.10
0.30
In the...
Doede Corporation uses activity-based costing to compute product margins. In the first stage, the activity-based costing...
Doede Corporation uses activity-based costing to compute product
margins. In the first stage, the activity-based costing system
allocates two overhead accounts--equipment depreciation and
supervisory expense--to three activity cost pools--Machining, Order
Filling, and Other--based on resource consumption. Data to perform
these allocations appear below:
Overhead costs:
Equipment depreciation
$
92,000
Supervisory expense
$
4,000
Distribution of Resource Consumption Across Activity Cost
Pools:
Activity Cost Pools
Machining
Order Filling
Other
Equipment depreciation
0.60
0.20
0.20
Supervisory expense
0.30
0.20
0.50
In the...
Doede Corporation uses activity-based costing to compute product margins. In the first stage, the activity-based costing...
Doede Corporation uses activity-based costing to compute product
margins. In the first stage, the activity-based costing system
allocates two overhead accounts--equipment depreciation and
supervisory expense--to three activity cost pools--Machining, Order
Filling, and Other--based on resource consumption. Data to perform
these allocations appear below:
Overhead costs:
Equipment
depreciation
$
73,000
Supervisory
expense
$
10,900
Distribution of Resource Consumption Across Activity Cost
Pools:
Activity Cost Pools
Machining
Order Filling
Other
Equipment
depreciation
0.60
0.30
0.10
Supervisory
expense
0.60
0.20
0.20
In the...
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