1) Conlon Enterprises reports the following information about resources. Cost Driver Rate Cost Driver Volume Resources...

1) Conlon Enterprises reports the following information about resources.

	Cost Driver Rate			Cost Driver Volume
Resources used
Setups	$	375	per run	350	runs
Clerical		45	per page	1,000	pages
Resources supplied
Setups	$	135,000
Clerical		60,000

Required:

Compute unused setup and clerical resource capacity for Conlon Enterprises.

	Unused Resource Capacity
Setups
Clerical

Tri-State Mill uses a special sander to finish lumber. Data on the sander and its usage follow.

	Cost Driver Rate			Cost Driver Volume
Resources used
Energy	$	0.90	per machine-hour	6,000	machine-hours
Repairs	$	16.00	per job	600	jobs
Resources supplied
Energy	$	6,900
Repairs		12,000

Required:

Compute unused resource capacity in energy and repairs for Tri-State Mill.

Unused Resource Capacity

Energy -

Repairs-

Solutions

Expert Solution

	Unused resource capacity
Setups = $135,000-(350*$375)	3,750
Clerical = $60,000-(1,000*$45)	15,000

	Unused resource capacity
Energy = $6,900-(6,000*$0.90)	1,500
Repairs = $12,000-(600*$16.00)	2,400

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

Carbon Company provides the following information about resources: Unused Resources Capacity Cost Driver Volume Resources used...

Carbon Company provides the following information about resources: Unused Resources Capacity Cost Driver Volume Resources used Materials $ 2,100 8,000 pounds Energy 1,260 390 machine-hours Setups 0 83 setups Purchasing 2,300 100 purchase orders Customer service 3,200 90 returns Long-term labor 4,180 340 labor-hours Administrative 4,780 440 labor-hours Resources supplied Materials $ 98,100 Energy 21,540 Setups 23,240 Purchasing 26,300 Customer service 15,800 Long-term labor 29,000 Administrative 30,300 Sales revenue for Carbon Company is $610,000. Required: a. Prepare a traditional income...

Felix & Co. reports the following information about its unit sales and cost of sales. Period...

Felix & Co. reports the following information about its unit sales and cost of sales. Period Units Sold Cost of Sales Period Units Sold Cost of Sales 1 0 $ 2,640 6 2,140 $ 6,492 2 540 3,612 7 2,540 7,212 3 940 4,332 8 2,940 7,932 4 1,340 5,052 9 3,340 8,652 5 1,740 5,772 10 3,740 9,372 Hint: (Draw an estimated line of cost behavior using a scatter diagram offline.) Complete the below table to calculate the fixed...

Part 6 – Activity Based Cost (10 marks) A company reports the following information about its...

Part 6 – Activity Based Cost A company reports the following information about its indirect costs: 1. Total indirect costs of $3,000,000 for the next year. 2. There two products: Product A and Product B. 3. Direct labour hours for Product A is 40,000 and Product B is 60,000 4. The company’s accountant has suggested an alternative to the traditional allocation of indirect overhead based on direct labour hours. The accountant suggested the following: a. Indirect costs can be broken...

27) A preliminary stage cost driver links costs of resources consumed in an activity center to:...

27) A preliminary stage cost driver links costs of resources consumed in an activity center to: 1. batch-level activities 2. products 3. cost functions 4. focused factories 5. other activity centers 28)In the step method of service center allocation, the number of allocation steps equals the number of: 1. activities performed in all operating departments. 2. service centers. 3. operating departments. 4. service centers plus operating departments. 5. activities performed in all service centers. 30)Activity based costing: 1. uses fewer...

The following information provides details of the cost, volume and cost drivers for the particular period...

The following information provides details of the cost, volume and cost drivers for the particular period in respect of ABC & Co. Products X Y Z Total Production and sales (units) 30,000 20,000 8,000 Raw material usage (units) 5 5 11 Direct material cost GHS 25 GHS 20 GHS 11 GHS 1,238,000 Direct labour hours 1⅓ 2 1 88,000 Machine hours 1⅓ 1 2 76,000 Direct labour cost 8 12 6 Number of production run 3 7 20 30 Number...

Question 1 : Conlon Chemicals manufactures paint thinner. Information on the work in process follows: •...

Question 1 : Conlon Chemicals manufactures paint thinner. Information on the work in process follows: • Beginning inventory, 40,400 partially complete gallons. • Transferred out, 210,500 gallons. • Ending inventory (materials are 21 percent complete; conversion costs are 10 percent complete). • Started this month, 240,500 gallons. Required: a. Compute the equivalent units for materials using the weighted-average method. b. Compute the equivalent units for conversion costs using the weighted-average method. Question 2: Conlon Chemicals manufactures paint thinner. Information on...

The following budgeted information is available for Zeta Company: Activity Budgeted Cost Activity Driver Consumption of...

The following budgeted information is available for Zeta Company: Activity Budgeted Cost Activity Driver Consumption of Drivers for Zeta’s Product Lines Total Activity Driver Product A Product B Processing & Testing Developing test programs $400,000 Engineering hours 10,000 2,500 7,500 Making probe cards 58,750 Development hours 4,000 400 3,600 Testing products 300,000 Test hours 20,000 2,000 18,000 Setups 40,000 Number of batches 100 55 45 Engineering design 80,000 Number of change orders 60 9 51 Handling lots 90,000 Number of...

1) Required information Gable Company uses three activity cost pools. Each pool has a cost driver....

1) Required information Gable Company uses three activity cost pools. Each pool has a cost driver. Information for Gable Company follows: Activity Cost Pools Total Cost of Pool Cost Driver Estimated Cost Driver Machining $ 236,300 Number of machine hours 69,500 Designing costs 58,725 Number of design hours 6,750 Setup costs 71,350 Number of batches 500 Required: 1. Compute the activity rate for each activity. 2. Classify each activity as facility, product, batch, or unit level. 2) Required information Gable...

Question 1 Conlon Chemicals manufactures paint thinner. Information on the work in process follows: • Beginning...

Question 1 Conlon Chemicals manufactures paint thinner. Information on the work in process follows: • Beginning inventory, 42,900 partially complete gallons. • Transferred out, 207,200 gallons. • Ending inventory (materials are 22 percent complete; conversion costs are 10 percent complete). • Started this month, 236,700 gallons. Required: a. Compute the equivalent units for materials using the weighted-average method. b. Compute the equivalent units for conversion costs using the weighted-average method. Question 2 Conlon Chemicals manufactures paint thinner. Information on the...

Cost behavior. VW has determined the following cost information at a volume of 16,000 units: Total...

Cost behavior. VW has determined the following cost information at a volume of 16,000 units: Total variable expenses = $108,000 and average cost = $13.00. Assuming 40,000 units is within the relevant, compute TOTAL cost at a volume of 40,000 units.

Subjects