Answered step by step
Verified Expert Solution
Question
1 Approved Answer
adria Company recently implemented an activity-based costing system. At the beginning of the year, management made the following estimates of cost and activity in the
adria Company recently implemented an activity-based costing system. At the beginning of the year, management made the following estimates of cost and activity in the company%u2019s five activity cost pools: |
Activity Cost Pool | Activity | Expected | Expected | ||
Labor-related | Direct labor-hours | $ | 171,500 | 35,000 | DLHs |
Purchase orders | Number of orders | $ | 67,500 | 900 | orders |
Material receipts | Number of receipts | $ | 159,320 | 1,400 | receipts |
Relay assembly | Number of relays | $ | 303,450 | 10,500 | relays |
General factory | Machine-hours | $ | 812,000 | 70,000 | MHs |
1. | Compute the activity rate for each of the activity cost pools.(Round your answer to 2 decimal places.) |
Activity Cost Pool | Activity Rate | |
Labor-related | $ | per DLH |
Purchase orders | $ | per order |
Material receipts | $ | per receipt |
Relay assembly | $ | per relay |
General factory | $ | per MH |
2. | The expected activity for the year was distributed among the company's four products as follows: |
Expected Activity | ||||
Activity Cost Pool | Product A | Product B | Product C | Product D |
Labor-related (DLHs) | 5,600 | 7,500 | 10,050 | 8,850 |
Production orders (orders) | 145 | 300 | 100 | 405 |
Material receipts (receipts) | 440 | 170 | 210 | 480 |
Relay assembly (relay) | 0 | 4,350 | 0 | 7,150 |
General factory (MHs) | 9,100 | 20,000 | 17,000 | 21,900 |
Using the ABC data, determine the total amount of overhead cost assigned to each product. (Do not round intermediate calculations. Round your answers to the nearest dollar amount.) |
Product A | $ |
Product B | $ |
Product C | $ |
Product D | $ |
|
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