Question
Activity-based costing uses a number of activity cost pools, each of which may have a different allocation base. True False Assembling a product is an
Activity-based costing uses a number of activity cost pools, each of which may have a different allocation base.
True
False
Assembling a product is an example of a(n):
A. |
| |
B. |
| |
C. |
| |
D. |
|
Senff Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products:
Activity Cost Pools | Activity Rate | |
Setting up batches | $38.50 | per batch |
Processing customer orders | $86.62 | per customer order |
Assembling products | $7.33 | per assembly hour |
Data concerning two products appear below:
| Product V91Z | Product V21I |
Number of batches | 83 | 27 |
Number of customer orders | 74 | 7 |
Number of assembly hours | 702 | 321 |
How much overhead cost would be assigned to Product V91Z using the activity-based costing system?
A. |
| |
B. | $132.45 | |
C. |
| |
D. |
|
The following data have been provided by Graise Corporation from its activity-based costing accounting system:
Factory supervision | $300,000 |
Indirect factory labor | $160,000 |
Distribution of Resource Consumption across Activity Cost Pools:
Activity Cost Pools | Batch Set-Up | Expediting | Other | Total |
Factory supervision | 35% | 55% | 10% | 100% |
Indirect factory labor | 50% | 30% | 20% | 100% |
How much factory supervision and indirect factory labor cost would be assigned to the Batch Set-Up activity cost pool? The "Other" activity cost pool consists of the costs of idle capacity and organization-sustaining costs that are not assigned to products.
A. | $185,000 |
B. | $195,500 |
C. | $230,000 |
D. | $460,000 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started