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A company has two products: standard and deluxe. The company expects to produce 39,166 Standard units and 44,122 Deluxe units. It uses activity-based costing and
A company has two products: standard and deluxe. The company expects to produce 39,166 Standard units and 44,122 Deluxe units. It uses activity-based costing and has prepared the following analysis showing budgeted cost and cost driver activity for each of its three activity cost pools. Budgeted Activity of Cost Driver Budgeted Standard Deluxe OH Cost $ 93,000 2.500 Purchases 5,250 Purchases Activity 1: Purchasing Activity 2: Designing $ 92,000 4,500 Designs 5,500 Designs Activity 3: Shipping $ 87,000 3,000 Orders 2,800 Orders Required: Make a Job Cost Sheet for the Standard Units. Use the following Direct Materials and Direct Labor information. Direct Materials $5,764 - Direct Labor $5,156 For Overhead, computer overhead rates for each of the three activities. Hint, you will divide each activity's budgeted cost by the TOTAL amount of that activity's cost driver. So you will need to add Purchases for Standard and Deluxe to get the total denominator for that activity. (Round activity rate and cost per unit answers to 2 decimal places.) Your Job Cost Sheet will include: Direct Materials + Direct Labor + Overhead for Purchasing + Overhead for Designing + Overhead for Shipping = Total Job Cost / Units Produced = Per Unit Cost The answer you type in will be the Per Unit Cost of the Standard Units. Round your answer to the nearest 2 decimal places. Which of the following statements is true? ABC allocates overhead based on a product's usage of resources. ABC is always a better way to find product costs than other methods. There should be 3 activity pools for ABC. Please select all of the answers that are considered disadvantages of ABC: Cost to implement ABC Cost Distortion can still exist, even with ABC ABC can provide more accurate overhead cost allocation
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