Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1 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

1
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
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) Indirect labor (total) $35,500 $ 9,609 Distribution of Resource Consumption Across Activity Cost Pools Factory utilities Indirect labor Processing 0.40 0.40 Setting Up 0.50 0.29 Other 0.10 0.48 Product 58 Product F1 Total MHS 3,100 7.800 Batches 1,200 1.089 2.200 10.990 Sales (total) Direct materials (total) Direct labor (total) Product S8 $79,500 $ 26,400 $36,200 Product F1 $ 98,800 $ 33,500 $ 40,100 Required: 3. 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. Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Assign overhead costs to activity cost pools using activity-based costing Activity Cost Pools Processing Setting Up Other Factory utilities Indirect labor Total 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. Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Calculate activity rates for each activity cost pool using activity-based costing. (Round your answers to 2 decimal places.) Activity Cost Pools Processing Setting up Activity Rate Der MH Iper batch 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. Complete this question by entering your answers in the tabs below. Required A Required B Required c Required D Determine the amount of overhead cost that would be assigned to each product using activity-based costing. (Round intermediate calculations to 2 decimal places.) Amount of Overhead Cost Product S8 Product F1 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. Complete this question by entering your answers in the tabs below. Required A Required B Required Required D Determine the product margins for each product using activity-based costing. (Round intermediate calculations to 2 decimal places.) Product Margin Product S8 Product F1

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Industrial Organizational Psychology An Applied Approach

Authors: Michael Aamodt

7th Edition

1111839972, 9781111839970

More Books

Students also viewed these Accounting questions