Question
In: Accounting
Angara Corporation uses activity-based costing to determine product costs for external financial reports. The company has...
Angara Corporation uses activity-based costing to determine product costs for external financial reports. The company has provided the following data concerning its activity-based costing system: Activity Cost Pool (and Activity Measure) Total Cost Machine related (machine-hours) $ 135,200 Batch setup (setups) $ 604,800 Order size (direct labor-hours) $ 121,500 Total Activity Activity Cost Pools Product X Product Y Total Machine related 1,400 6,600 8,000 Batch setup 2,900 5,100 8,000 Order size 6,400 2,600 9,000 The total amount of overhead cost allocated to Product X would be closest to:
Solutions
Expert Solution
| Overhead Assigned to Product X | $ 3,29,300 | ||
Working:
| a. | Calculation of activity rates | |||||
| Activity Cost Pool | Total Overhead Cost | Activity Measure | Activity Rates | |||
| (a) | Product X (b) | Product Y (c | Total Quantity(d)=(b)+(c | (a)/(d) | ||
| Machine related | $ 1,35,200 | 1,400 | 6,600 | 8,000 | $ 16.90 | |
| Batch Setup | $ 6,04,800 | 2,900 | 5,100 | 8,000 | $ 75.60 | |
| Order Size | $ 1,21,500 | 6,400 | 2,600 | 9,000 | $ 13.50 | |
| b. | ||||||
| Calculation of Overhead Assignment to Product X: | ||||||
| Activity Cost Pool | Activity Measure | Activity Rates | Overhead Assigned | |||
| Machine related | 1,400 | $ 16.90 | $ 23,660 | |||
| Batch Setup | 2,900 | $ 75.60 | $ 2,19,240 | |||
| Order Size | 6,400 | $ 13.50 | $ 86,400 | |||
| Overhead Assigned to Product X | $ 3,29,300 | |||||
ekkarill92 answered 2 years agoRelated Solutions
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Dodo Inc., uses activity-based costing to determine product
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allocates two overhead accounts--equipment depreciation and
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Filling, and Other--based on resource consumption. Data pertinnent
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Overhead costs:
Equipment depreciation
$
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Supervisory expense
$
9,900
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Machining
Order Filling
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Equipment depreciation
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0.30
0.10
Supervisory expense
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0.20
0.20
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A company uses activity-based costing to determine the costs of its three products: A, B, and...
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
$
85,000
7,500
10,500
21,500
Activity 2
$
60,000
8,500
16,500
9,500
Activity 3
$
112,000
4,000
2,500
3,125
How much overhead will be assigned to Product B...
A company uses activity-based costing to determine the costs of its three products: A, B, and...
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:
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...
A company uses activity-based costing to determine the costs of its three products: A, B, and...
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
$
75,000
6,500
9,500
20,500
Activity 2
$
50,000
7,500
15,500
8,500
Activity 3
$
92,000
3,000
1,500
2,125
How much overhead will be assigned to Product B...
Hello I have a cost accounting question. Sylvan Company uses activity-based costing to determine product costs...
Hello I have a cost accounting question.
Sylvan Company uses activity-based costing to determine product
costs for external financial reports. Some of the entries have been
completed to the manufacturing overhead account for the current
year, as shown by entry (a) below:
Manufacturing Overhead
(a) 2,318,000
Required:
1. What does entry (a) represent?
Actual manufacturing overhead cost incurred
Overhead applied
Machine-hours
2.
At the beginning of the year, the company made the following...
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...
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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