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Activity-Based Costing for a Service Business Metropolitan Bank uses activity-based costing to determine the cost of servicing customers. There are three activity pools: teller transaction
Activity-Based Costing for a Service Business Metropolitan Bank uses activity-based costing to determine the cost of servicing customers. There are three activity pools: teller transaction processing, check processing, and ATM transaction processing. The activity rates associated with each activity pool are $2.90 per teller transaction. so 2 percanceled check, and soo erA M ransaction. Janelle Campbell had 8 teller transactions, 102 canceled checks, and 21 ATM transactions during the month. Determine the total monthly activity-based cost for Campbell during the month. Round your answer to the nearest cent. Instructions The total factory overhead for Diva-nation is budgeted for the year at $177,675, divided into four activities: cutting, $19,231; sewing, $38,903; setup, $87,509; and inspection, $32,032. Diva- nation manufactures two types of men's pants: jeans and khakis. The activity-base usage quantities for each product by each activity are as follows: Cutting Sewing Setup Inspection Jeans 840 dih 1,200 dih 1,195 setups 3,000 inspections Khakis 1,195 795 990 2.005 2,035 dlh 1,995 dlh 2,185 setups 5,005 inspections Each product is budgeted for 20,000 units of production for the year. Required: Complete the Activity Tabies for jeans and khakis. A. Determine the activity rates for each activity. Enter these rates in the Activity Rate columns. B. Use the activity rates in (A) to determine the activity-based factory overhead per unit for each product. When required, round all per-unit and activity rate answers to the nearest cent. Activity Table Jeans Shaded cells have feedback Complete the Activity Table for Jeans. A. Determine the activity rates for each activity. Enter these rates in the Activity Rate columns. B. Use the activity rates in (A) to determine the activity-based factory overhead per unit for each product. When required, round al per-unit and activity rate answers to the nearest cent. Jeans Activity Base Activity Usage Rate Cost Cuttting Sewing Setup dlh dlh s setups Insp. dlh Idih setup insp. Total +Budgeted items Factory overhead per unit A. Determine the activity rates for each activity. Enter these rates in the Activity Rate columns. B. Use the activity rates in (A) to determine the activity-based factory overhead per unit for each product When required, round al per-unit and activity rate answers to the nearest cent. Khakis Activity Base Activity Activity Usage Rate Cost dlh S dihS Cutting Sewing Setup Idlh setups Isetup sS insp. Total Budgeted items Factory overhead per unit Points: 8123
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