Equipment expenseIndirect labor$ 102,000$ 7,500Distribution of Resource Consumption Across Activity Cost Pools:Equipment expenseIndirect laborActivity:Product F6Product X0TotalProcessing costs are assigned to products using machine-hours (MHs) and Supervising costs are assigned toproducts using the number of batches. The costs in the Other activity cost pool are not assigned to products.Activity data for the company's two products follow:MHS(Processing)15,0001,26016,260mrst stage allocations follow.Processing0.300.30Activity Coat PoolsSupervising0.500.40Equipment depreciationSupervisory expenseWhat is the overhead cost assigned to Product XO under activity-based costing? (Round your intermediatecalculations to 2 decimal places.)Equipment depreciationSupervisory expenseProduct MOProduct H2TotalBatches(Supervising)6106401,250Distribution of Resource Consumption Across Activity Cost Pools:$ 80,300$ 10,100Activity Cost FoolsMachining Order Filling0.600.60Other0.200.300.300.20MHS (Machining)1,7209,65011,370Machining costs are assigned to products using machine-hours (MHs) and Order Filling costs are assigned toproducts using the number of orders. The costs in the Other activity cost pool are not assigned to products. Activitydata for the company's two products follow:Activity:Other0.100.20Orders (OrderFilling)7901,9502,740What is the overhead cost assigned to Product H2 under activity-based costing? (Round your intermediatecalculations to 2 decimal places.)

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Description: Equipment expenseIndirect labor$ 102,000$ 7,500Distribution of Resource Consumption Across Activity Cost Pools:Equipment expenseIndirect laborActivity:Product F6Product X0TotalProcessing costs are assigned to products using machine-hours (MHs) and S

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Equipment expense Indirect labor $ 102,000 $ 7,500 Distribution of Resource Consumption Across Activity Cost Pools: Equipment expense Indirect labor Product F6 Product X0 Total Activity Coat Pools Supervising 0.50 0.40 Processing 0.30 0.30 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 for the company's two products follow: Activity: MHB (Processing) 15,000 1,260 16,260 Batches (Supervising) Other 0.20 0.30 610 640 1,250 What is the overhead cost assigned to Product XO under activity-based costing? (Round your intermediate calculations to 2 decimal places.)

Equipment expense Indirect labor $ 102,000 $ 7,500 Distribution of Resource Consumption Across Activity Cost Pools: Equipment expense Indirect labor Product F6 Product X0 Total Activity Coat Pools Supervising 0.50 0.40 Processing 0.30 0.30 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 for the company's two products follow: Activity: MHB (Processing) 15,000 1,260 16,260 Batches (Supervising) Other 0.20 0.30 610 640 1,250 What is the overhead cost assigned to Product XO under activity-based costing? (Round your intermediate calculations to 2 decimal places.)

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter4: Activity-based Costing

Section: Chapter Questions

Problem 12E: Activity cost pools, activity rates, and product costs using activity-based costing Caldwell Home...

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Medical Tape makes two products: Generic and Label. It estimates it will produce 423,694 units of Generic and 652,200 of Label, and the overhead for each of its cost pools is as follows: It has also estimated the activities for each cost driver as follows: How much is the overhead allocated to each unit of Generic and Label?
Logo Inc. has two data services departments (Systems and Facilities) that provide support to the companys three production departments (Machining, Assembly, and Finishing). The overhead costs of the Systems Department are allocated to other departments on the basis of computer usage hours. The overhead costs of the Facilities Department are allocated based on square feet occupied (in thousands). Other information pertaining to Logo is as follows. If Logo employs the direct method of allocating service department costs, the overhead of the Systems Department would be allocated by dividing the overhead amount by: a. 1,200 hours. b. 8,100 hours. c. 9,000 hours. d. 9,300 hours.
Lampierre makes brass and gold frames. The company computed this information to decide whether to switch from the traditional allocation method to ABC: The estimated overhead for the material cost pool is estimated as $12,500, and the estimate for the machine setup pool is $35,000. Calculate the allocation rate per unit of brass and per unit of gold using: A. The traditional allocation method B. The activity-based costing method
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Activity cost pools, activity rates, and product costs using activity-based costing Caldwell Home Appliances Inc. is estimating the activity cost associated with producing ovens and refrigerators. The indirect labor can be traced into four separate activity pools, based on time records provided by the employees. The budgeted activity cost and activity-base information are provided as follows: The estimated activity-base usage and unit information for two product lines was determined as follows: A. Determine the activity rate for each activity cost pool. B. Determine the activity-based cost per unit of each product.
Refer to the data in Exercise 7.20. The company has decided to use the sequential method of allocation instead of the direct method. The support departments are ranked in order of highest cost to lowest cost. Required: 1. Allocate the overhead costs to the producing departments using the sequential method. (Take allocation ratios out to four significant digits. Round allocated costs to the nearest dollar.) 2. Using machine hours, compute departmental overhead rates. (Round the overhead rates to the nearest cent.)
Roberts Company produces two weed eaters: basic and advanced. The company has four activities: machining, engineering, receiving, and inspection. Information on these activities and their drivers is given below. Overhead costs: Required: 1. Calculate the four activity rates. 2. Calculate the unit costs using activity rates. Also, calculate the overhead cost per unit. 3. What if consumption ratios instead of activity rates were used to assign costs instead of activity rates? Show the cost assignment for the inspection activity.
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(Appendix 3A) Separating Fixed and Variable Costs, Service Setting Louise McDermott, controller for the Galvin plant of Veromar Inc., wanted to determine the cost behavior of moving materials throughout the plant. She accumulated the following data on the number of moves (from 100 to 800 in increments of 100) and the total cost of moving materials at those levels of moves: Required: 1. Prepare a scattergraph based on these data. Use cost for the vertical axis and number of moves for the horizontal axis. Based on an examination of the scattergraph, does there appear to be a linear relationship between the total cost of moving materials and the number of moves? 2. Compute the cost formula for moving materials by using the high-low method. Calculate the predicted cost for a month with 550 moves by using the high-low formula. (Note: Round the answer for the variable rate to three decimal places and the answer for total fixed cost and total cost to the nearest dollar.) 3. CONCEPTUAL CONNECTION Compute the cost formula for moving materials using the method of least squares. (Note: For the method of least squares, round the variable rate to two decimal places and total fixed cost and total cost to the nearest dollar.) Using the regression cost formula, what is the predicted cost for a month with 550 moves? What does the coefficient of determination tell you about the cost formula computed by regression? 4. CONCEPTUAL CONNECTION Evaluate the cost formula using the least squares coefficients. Could it be improved? Try dropping the third data point (300, 3,400), and rerun the regression.
Overhead costs are assigned to each product based on __________________. A. the proportion of that products use of the cost driver B. a predetermined overhead rate for a single cost driver C. price of the product D. machine hours per product