1. Explain the role of activity drivers in assigning costs to products. 2. Why are the accounting...

1. Explain the role of activity drivers in assigning costs to products.

2. Why are the accounting requirements for job order costing more demanding than those of process costing?

3. Folio Glass produces custom glass platters. For one job, the trainee assigned to cut the glass set the template incorrectly into the computer. This template was unusable and had to be discarded; another template was cut to the correct dimensions. How is the cost of the spoiled template handled?

Expert Solution

1.

2.

3.

ekkarill92 answered 1 year ago

PA4-3 Selecting Cost Drivers, Assigning Costs Using Activity Rates [LO 4-1, 4-3, 4-4, 4-6 ] Harbour...

PA4-3 Selecting Cost Drivers, Assigning Costs Using Activity Rates [LO 4-1, 4-3, 4-4, 4-6 ] Harbour Company makes two models of electronic tablets, the Home and the Work. Basic production information follows: Home Work Direct materials cost per unit $ 39 $ 64 Direct labor cost per unit 23 33 Sales price per unit 351 572 Expected production per month 600 units 490 units Harbour has monthly overhead of $213,390, which is divided into the following cost pools:...

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...

PA4-4 (Algo) Selecting Cost Drivers, Assigning Costs Using Activity Rates [LO 4-1, 4-3, 4-4, 4-6] Keller...

PA4-4 (Algo) Selecting Cost Drivers, Assigning Costs Using Activity Rates [LO 4-1, 4-3, 4-4, 4-6] Keller Company makes two models of battery-operated boats, the Sandy Beach and the Rocky River. Basic production information follows: Sandy Beach Rocky River Direct materials cost per unit $ 19.70 $ 27.80 Direct labor cost per unit 13.10 18.80 Sales price per unit 83.20 106.00 Expected production per month 1,210 units 980 units Keller has monthly overhead of $11,272, which is divided into the following...

Fischer Company identified the following activities, costs, and activity drivers: Activity Expected Costs Expected Activity Handling...

Fischer Company identified the following activities, costs, and activity drivers: Activity Expected Costs Expected Activity Handling Parts 425,000 25,00 parts in stock Inspecting Parts 390,000 940 batches Processing Purchase Orders 220,000 440 orders Designing Packaging 230,000 5 models a. Compute a plantwide overhead rate assuming the company assigns overhead based on 70,000 budgeted direct labor hours (Round to two decimals). b. Compute separate rates for each of the four activities using the activity-based costing.

Stage 1 ABC at a College: Assigning Costs to Activities An accounting professor at Middleton University...

Stage 1 ABC at a College: Assigning Costs to Activities An accounting professor at Middleton University devotes 60 percent of her time to teaching, 30 percent of her time to research and writing, and 10 percent of her time to service activities such as committee work and student advising. The professor teaches two semesters per year. During each semester, she teaches one section of an introductory financial accounting course (with a maximum enrollment of 40 students) and one section of...

1.Explain why it is necessary to distribute indirect costs to products or services. 2. Mention which...

1.Explain why it is necessary to distribute indirect costs to products or services. 2. Mention which are the most used methods to assign indirect costs of manufacturing to a product or service. 1. Describe, in your own words, how the cost of a product is determined or service in a company. 2. Explain, in your own words, how the selling price of a product or servic

1. Explain why economic costs include both explicit costs and implicit costs. 2. Explain the concept...

1. Explain why economic costs include both explicit costs and implicit costs. 2. Explain the concept of opportunity cost as related to the doctor in the Khan Academy video who gave up his profession to open a business. 3. What other factors do you think the doctor may have considered when he decided to leave his profession to open a business?

Assigning manufacturing overhead cost to activity pools is referred to as first-stage allocation because costs are...

Assigning manufacturing overhead cost to activity pools is referred to as first-stage allocation because costs are assigned first to the activity pools before being assigned to a. cost objects. b. activity objects. c. activity drivers. d. cost drivers. Omer Limited produces and sells electronic sound equipment. The company has production capacity of 20,000 units and currently production schedule is for 18,000 units. Each unit has a selling price of $25, variable product cost of $15, and variable selling cost of...

what are cost drivers? What is their role in an activity-based costing system? What are important...

what are cost drivers? What is their role in an activity-based costing system? What are important factors in selecting cost drivers for an ABC system? b

Xie Company identified the following activities, costs, and activity drivers for this year. The company manufactures...

Xie Company identified the following activities, costs, and activity drivers for this year. The company manufactures two types of go-karts: Deluxe and Basic. Activity Expected Costs Expected Activity Handling materials $ 710,000 100,000 parts Inspecting product 985,000 1,500 batches Processing purchase orders 190,000 700 orders Paying suppliers 260,000 500 invoices Insuring the factory 385,000 40,000 square feet Designing packaging 160,000 2 models Assume that the following information is available for the company’s two products for the first quarter of this...

Question