Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

a) What is the Activity Rate for the Framing pool? b) What is the Activity Rate for the Inspection pool c) What is the Total

image text in transcribed

a) What is the Activity Rate for the Framing pool?

b) What is the Activity Rate for the Inspection pool

c) What is the Total Cost Per Twin?

d) What is the Total Cost Per Double

e) What is the Total Cost Per Unit for the Twin size?

f) What is the total cost per unit for the double size?

Box Springs, Inc., makes two sizes of box springs: twin and double. The direct material for the twin is $25 per unit and $40 is used in direct labor, while the direct material for the double is $40 per unit, and the labor cost is $50 per unit. Box Springs estimates it will make 5,000 twins and 9,000 doubles in the next year. It estimates the overhead for each cost pool and cost driver activities as follows: Activity Cost Estimated Driver Use Per Twin Use Per Double Pools Overhead Square feet of Framing 210,000 5,000 2,000 pine Square feet of Padding 220,000 120,000 100,000 quilting Square feet of Filling 320,000 500,000 300,000 filling Labelling Number of boxes 240,000 800,000 400,000 Number of Inspection 170,000 12,000 5,000 inspections For Question 1, what is the Activity Rate for the Framing pool? $30 $65 $10 $25

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

More Books

Students also viewed these Accounting questions

Question

Give an example of the use of a masking agent.

Answered: 1 week ago