Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Activity-Based Costing: Selling and Administrative Expenses Comfort Step Company manufactures and sells shoes. Comfort Step uses activity-based costing to determine the cost of the sales

image text in transcribed

image text in transcribed

image text in transcribed

Activity-Based Costing: Selling and Administrative Expenses Comfort Step Company manufactures and sells shoes. Comfort Step uses activity-based costing to determine the cost of the sales order processing and the shipping activity The sales order processing activity has an activity rate of $84 per sales order, and the shipping activity has an activity rate of $5 per shipment. Comfort Step sold 10,000 units of walking shoes, which consisted of 4,100 orders and 400 shipments. a. Determine the total sales order processing and shipping activity cost for walking shoes. b. Determine the per-unit sales order processing and shipping activity cost for walking shoes. If required, round your answer to the nearest cent. per unit Multiple production department factory overhead rates The total factory overhead for Diva-nation is budgeted for the year at $186,120, divided into two departments: Cutting, $68,244, and Sewing, $117,876. Diva-nation manufactures two types of men's pants: jeans and khakis. The jeans require 0.06 direct labor hour (dih) in Cutting and 0.08 direct labor hour in Sewing. The khakis require 0.05 direct labor hour in Cutting and 0.03 direct labor hour in Sewing. Each product is budgeted for 18,800 units of production for the year. A. Determine the total number of budgeted direct labor hours for the year in each department. Cutting Sewing direct labor hours direct labor hours B. Determine the departmental factory overhead rates for both departments. When required, round all per-unit answers to the nearest cent. Cutting Sewing per dih per dih C. Determine the factory overhead allocated per unit for each product using the department factory overhead allocation rates. When required, round all per-unit answers to the nearest cent. eans S Khakis s per unit per unit Single plantwide factory overhead rate The total factory overhead for Diva-nation Inc. is budgeted for the year at $45,300. Diva-nation manufactures two types of men's pants: jeans and khakis. The jeans and khakis each require 0.05 direct labor hour (dlh) for manufacture. Each product is budgeted for 15,100 units of production for the year. When required, round all per-unit answers to the nearest cent. A. Determine the total number of budgeted direct labor hours for the year. direct labor hours B. Determine the single plantwide factory overhead rate. When required, round all per-unit answers to the nearest cent. per dih C. Determine the factory overhead allocated per unit for each product using the single plantwide factory overhead rate. When required, round all per-unit answers to the nearest cent. Jeans Khakis per unit per unit

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

Practical Guide To Commercial And Industrial Energy Auditing

Authors: Mtijan M Kamara

1st Edition

1717257321, 978-1717257321

More Books

Students also viewed these Accounting questions