10 Activity cost pool Cost Driver 11 Assembling units #units 12 Processing orders #orders 13. Supporting customers #customers 14 Other N/A 15 Total costs to allocate to products Budgeted Budgeted # Cost Drivers per customer Overhead Cost Drivers Dog food Cat food $ 32,000 16,000 $ 12,000 24,000 4 $ 50,000 2,000 $ 66,000 $ 160,000 16 17 9. (1 point each) Identify the activity cost pool or cost driver that BEST matches each of the following 18 descriptions. Use each item from the table above only once. 19 20 Transaction cost driver 21 22 Organization-sustaining activity cost pool 23 24 Customer-level activity cost pool 25 26 Unit-level activity cost pool 27 20 Batch-level activity cost pool 0. (1 point each) Compute the following amounts. Assume that the Company adopts activity-based costing: a. Overhead rate for assembling units activity b. Overhead rate for processing orders activity c. Overhead rate for supporting customers activity d. Total overhead applied for dog food for one customer e. Total overhead applied for cat food for one customer Now assume the Company uses 'number of units' as a basis to allocate over f. Total number of units TE 1 LED 1 EL g. Predetermined plantwide overhead rate 1 1 h. Total overhead applied for dog food for one customer LIST II i. Total overhead applied for cat food for one customer ET 54 11. (2 points each) Treat each of the following questions separately and using the data given above 55 for this Company. No computations necessary. 56 57 a. Identify two reasons why the overhead rates differ between the ABC and traditional systems. Briefly explain. 58 59 60 62 b. Does the ABC pilot study yield more or less acccurate cost information? Briefly explain. 64 65 le 66 67 c. Should the ABC reults used to set new prices for dog food and cat food? Briefly explain. 68 69 70 71 10 Activity cost pool Cost Driver 11 Assembling units #units 12 Processing orders #orders 13. Supporting customers #customers 14 Other N/A 15 Total costs to allocate to products Budgeted Budgeted # Cost Drivers per customer Overhead Cost Drivers Dog food Cat food $ 32,000 16,000 $ 12,000 24,000 4 $ 50,000 2,000 $ 66,000 $ 160,000 16 17 9. (1 point each) Identify the activity cost pool or cost driver that BEST matches each of the following 18 descriptions. Use each item from the table above only once. 19 20 Transaction cost driver 21 22 Organization-sustaining activity cost pool 23 24 Customer-level activity cost pool 25 26 Unit-level activity cost pool 27 20 Batch-level activity cost pool 0. (1 point each) Compute the following amounts. Assume that the Company adopts activity-based costing: a. Overhead rate for assembling units activity b. Overhead rate for processing orders activity c. Overhead rate for supporting customers activity d. Total overhead applied for dog food for one customer e. Total overhead applied for cat food for one customer Now assume the Company uses 'number of units' as a basis to allocate over f. Total number of units TE 1 LED 1 EL g. Predetermined plantwide overhead rate 1 1 h. Total overhead applied for dog food for one customer LIST II i. Total overhead applied for cat food for one customer ET 54 11. (2 points each) Treat each of the following questions separately and using the data given above 55 for this Company. No computations necessary. 56 57 a. Identify two reasons why the overhead rates differ between the ABC and traditional systems. Briefly explain. 58 59 60 62 b. Does the ABC pilot study yield more or less acccurate cost information? Briefly explain. 64 65 le 66 67 c. Should the ABC reults used to set new prices for dog food and cat food? Briefly explain. 68 69 70 71