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Activities and Cost Drivers The number of cooks in the kitchen The number of tables cleaned The most appropriate cost driver for the activity of
Activities and Cost Drivers The number of cooks in the kitchen The number of tables cleaned The most appropriate cost driver for the activity of cleaning (bussing) tables in a restaurant is er: B The number of employees assigned to the job of cleaning tables The amount of money deposited to the bank each day ale: On the basis of logical analysis the number of tables cleaner :. .. 2. The company is considering replacing its traditional costing system with an activity-based costing system that would assign manufacturing overhead to the following four activity cost pools. Estimated Expected Activity Activities and Activity Measures Overhead Rugged Trekker Total Maintenance (direct labor-hours) 783,600 40,000 80,000 120,000 Batch setups (setups) 495,000 200 100 300 Product Promotion (# of products) 602,400 Other Overhead (# of products) 99,000 Total manufacturing overhead cost 1,980,000 Required: Compute the product margins for the Rugged and Trekker products under the activity-based costing system. 783600 - 6- 50The gunther of amininyane sosigned Of the amount of minnoy deposited to fatinmates On the basis of logical analy Topic: Amid . DEMO Problem: Activity-Based Costing Hazy Mountain Company makes two types of hiking boots-Rugged and the Trekker. wtivity-bos Data concerning these two product lines appear below: following Activitie Rugged Trekker Selling per unit Mainte $ 140.00 9900 Batch Direct materials per unit 72.00 53.00 Produ Direct labor per unit 24.00 12.00 Othe Direct labor hours per unit 2.0 DLHs 1.0 DL.H To Estimated annual production and sales 20,000 units 80,000 units R The company has a traditional costing system in which manufacturing overhead is applied to units based on direct labor hours. Data concerning manufacturing overhead and direct labor hours for the upcoming year appear below: Estimated total manufacturing overhead 1,980,000 Estimated total direct labor-hours 120,000 DLHS Required: 1. Compute the product margins for the Rugged and Trekker products under the
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