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 cost pool are not assigned to products. Data concerning the two products and the company's costs and activity-based costing system appear below: Factory utilities (total) $ 35,500 Indirect labor (total) $ 9,600 Distribution of Resource Consumption Across Activity Cost Pools Processing Setting Up Other Factory utilities 0.40 0.50 0.10 Indirect labor 0.40 0.20 0.40 MHs Batches Product S8 3,100 1,200 Product F1 7,800 1,000 Total 10,900 2,200 Product S8 Product F1 Sales (total) $ 79,500 $ 98,800 Direct materials (total) $ 26,400 $ 33,500 Direct labor (total) $ 36,200 $ 40,100 Required: a. Assign overhead costs to activity cost pools using activity-based costing. b. Calculate activity rates for each activity cost pool using activity-based costing. c. Determine the amount of overhead cost that would be assigned to each product using activity-based costing. d. Determine the product margins for each product using activity-based costing.

E5-14 Determining Cost Behavior, Preparing Contribution Margin Income Statement [LO 5-1, 5-5]

Riverside Inc. makes one model of wooden canoe. Partial information for it follows:

3. Suppose Riverside sells its canoes for $519 each. Calculate the contribution margin per canoe and the contribution margin ratio. (Round your contribution margin to the nearest whole dollar and your contribution margin ratio to the nearest whole percent.)

4. Next year Riverside expects to sell 880 canoes. Complete the contribution margin income statement for the company.

Howell Corporation's activity-based costing system has three activity cost pools--Machining, Setting Up, and Other. The company's overhead costs, which consist of equipment depreciation and indirect labor, are allocated to the cost pools in proportion to the activity cost pools' consumption of resources. Equipment depreciation (total) $ 27,000 Indirect labor (total) $ 7,000 Distribution of Resource Consumption Across Activity Cost Pools Machining Setting Up Other Equipment depreciation 0.40 0.30 0.30 Indirect labor 0.20 0.30 0.50 Costs in the Machining 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 cost pool are not assigned to products. MHs Batches Product S4 8,100 400 Product C0 1,900 1,600 Total 10,000 2,000 Additional data concerning the company's products appears below: Product S4 Product C0 Sales (total) $ 71,400 $ 57,600 Direct materials (total) $ 21,900 $ 19,900 Direct labor (total) $ 33,700 $ 25,100 Required: a. Assign overhead costs to activity cost pools using activity-based costing. b. Calculate activity rates for each activity cost pool using activity-based costing. c. Determine the amount of overhead cost that would be assigned to each product using activity-based costing. d. Determine the product margins for each product using activity-based costing.

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 cost pool are not assigned to products. Data concerning the two products and the company's costs and activity-based costing system appear below: Factory utilities (total) $ 38,900 Indirect labor (total) $ 12,400 Distribution of Resource Consumption Across Activity Cost Pools Processing Setting Up Other Factory utilities 0.50 0.10 0.40 Indirect labor 0.30 0.10 0.60 MHs Batches Product S8 3,800 900 Product F1 7,300 400 Total 11,100 1,300 Product S8 Product F1 Sales (total) $ 72,300 $ 99,500 Direct materials (total) $ 22,500 $ 32,700 Direct labor (total) $ 33,900 $ 44,400 Required: a. Assign overhead costs to activity cost pools using activity-based costing. b. Calculate activity rates for each activity cost pool using activity-based costing. c. Determine the amount of overhead cost that would be assigned to each product using activity-based costing. d. Determine the product margins for each product using activity-based costing.

Howell Corporation's activity-based costing system has three activity cost pools--Machining, Setting Up, and Other. The company's overhead costs, which consist of equipment depreciation and indirect labor, are allocated to the cost pools in proportion to the activity cost pools' consumption of resources.

Distribution of Resource Consumption Across Activity Cost Pools

Costs in the Machining 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 cost pool are not assigned to products.

Additional data concerning the company's products appears below:

Required:

a. Assign overhead costs to activity cost pools using activity-based costing.

b. Calculate activity rates for each activity cost pool using activity-based costing.

c. Determine the amount of overhead cost that would be assigned to each product using activity-based costing.

d. Determine the product margins for each product using activity-based costing.

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 cost pool are not assigned to products. Data concerning the two products and the company's costs and activity-based costing system appear below:

Distribution of Resource Consumption Across Activity Cost Pools

Required:

a. Assign overhead costs to activity cost pools using activity-based costing.

b. Calculate activity rates for each activity cost pool using activity-based costing.

c. Determine the amount of overhead cost that would be assigned to each product using activity-based costing.

d. Determine the product margins for each product using activity-based costing.

A. An earthwork contract requires to cut and move excavated rocks. The site is a typical limestone rock formation in a cut section, which is 15,000 ft long, 85 ft wide, and 3 ft deep. Seismographic tests indicate a seismic wave velocity of 5,000 fps for the rock layer material. The contractor proposes to rip the rock with a 370-hp crawler tractor. Answer the following questions.

(a) Calculate the production in bcy per hour, for full-time ripping, with efficiency based on a 45         -min hour. Assume that the ripper is equipped with a single shank and that ripping conditions are average (i.e., intermediate between extreme conditions). This is classified as heavy ripping.

(b) Estimate the ripping unit-production cost in dollars per bcy using your calculated hourly production. The normal O&O cost per hour, including operator, for a tractor w/ ripper $130.00. The operator’s wage with fringe is $33.00 per hour.

(c) What is the total direct cost of the cut quantity?

(d) What is the total duration of the rock cut project assuming 10 hours per day work?

B. As a Construction Manager for this site development project, prepare detailed cost estimate for the project, and bid documents.

      Assume 10% time value cost of money, bonds, insurance, and storage over total direct cost, contingency at 2% of total direct cost, indirect overhead cost at 5% of total direct cost (additional on top of the equipment and operator costs), and 10% fee (on subtotal total of direct and indirect cost).

Factory Overhead Cost Variance Report

Tiger Equipment Inc., a manufacturer of construction equipment, prepared the following factory overhead cost budget for the Welding Department for May of the current year. The company expected to operate the department at 100% of normal capacity of 8,400 hours.

During May, the department operated at 8,860 hours, and the factory overhead costs incurred were indirect factory wages, $32,400; power and light, $21,000; indirect materials, $18,250; supervisory salaries, $20,000; depreciation of plant and equipment, $36,200; and insurance and property taxes, $15,200.

Required:

Prepare a factory overhead cost variance report for May. To be useful for cost control, the budgeted amounts should be based on 8,860 hours. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. If an amount box does not require an entry, leave it blank.

ACCT 101B - CH 23 EXAMPLE 4

The office manager for the Gotham Life Insurance Company orders letterhead stationery from an office products firm in boxes of 500 sheets. The company uses 6,500 boxes per year. Annual carrying costs are $3 per box, and ordering costs are $28. The following discount price schedule is provided by the office supply company: Order Quantity (in boxes) Price per Box 200-999 $16 1000-2999 14 3000-5999 13 6000+ 12 a. Determine the optimal order quantity and the total annual inventory cost. b. Determine the optimal order quantity and total annual inventory cost for boxes of stationery if the carrying cost is 20% of the price of a box of stationery. Please put answers in the excel format.