Managerial Accounting Activity Based Costing Homework Help
- July 19, 2017
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- Category: Accounting QA
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1. Lehner Corporation has provided the following data from its activity-based costing accounting system:
Indirect factory wages $615,000
Factory equipment depreciation $321,000
Distribution of Resource Consumption across Activity Cost Pools:
Activity Cost Pools
Customer
Orders Product
Processing Other Total
Indirect factory wages 55% 20% 25% 100%
Factory equipment depreciation 10% 55% 35% 100%
The “Other” activity cost pool consists of the costs of idle capacity and organization-sustaining costs that are not assigned to products.
How much indirect factory wages and factory equipment depreciation cost would be assigned to the Customer Orders activity cost pool?
2.Matt Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A is 9,000 units and of Product B is 6,500 units. There are three activity cost pools, with total cost and total activity as follows:
Total Activity | ||||
Activity Cost Pool | Total Cost | Product A | Product B | Total |
Activity 1 | $26,840 | 140 | 470 | 610 |
Activity 2 | $42,705 | 880 | 290 | 1,170 |
Activity 3 | $125,700 | 830 | 3,360 | 4,190 |
The activity-based costing cost per unit of Product A is closest to: (Round your intermediate calculations to 2 decimal places.)
3.Activity rates from Quattrone Corporation’s activity-based costing system are listed below. The company uses the activity rates to assign overhead costs to products
Activity Cost Pools | Activity Rate | |
Processing customer orders | $93.46 | per customer order |
Assembling products | $2.78 | per assembly hour |
Setting up batches | $54.45 | per batch |
Last year, Product F76D involved 4 customer orders, 459 assembly hours, and 21 batches. How much overhead cost would be assigned to Product F76D using the activity-based costing system?
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4.Bossie Corporation uses an activity-based costing system with three activity cost pools. The company has provided the following data concerning its costs and its activity based costing system
Costs: | |
Wages and salaries | $294,000 |
Depreciation | 284,000 |
Utilities | 227,000 |
Total | $805,000 |
Distribution of resource consumption: | ||||
Activity Cost Pools | ||||
Assembly | Setting up | Other | Total | |
Wages and salaries | 40% | 30% | 30% | 100% |
Depreciation | 25% | 10% | 65% | 100% |
Occupancy | 20% | 75% | 5% | 100% |
How much cost, in total, would be allocated in the first-stage allocation to the Assembly activity cost pool?
5. Umanzor Corporation uses activity-based costing to assign overhead costs to products. Overhead costs have already been allocated to the company’s three activity cost pools as follows: Processing, $46,700; Supervising, $33,600; and Other, $24,200. Processing costs are assigned to products using machine-hours (MHs) and Supervising costs are assigned to products using the number of batches. The costs in the Other activity cost pool are not assigned to products. Activity data appear below
MHs (Processing) | Batches (supervising) | |
Product S5 | 18,400 | 1,250 |
Product F5 | 770 | 970 |
Total | 19,170 | 2,220 |
What is the overhead cost assigned to Product S5 under activity-based costing? (Round your intermediate calculations to 2 decimal places.)
Product Code: ACC83
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