Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

As you might imagine the ABC Tank Manufacturing Company uses an activity-based costing system. ABC has given you the following data that is used in

image text in transcribed

As you might imagine the ABC Tank Manufacturing Company uses an activity-based costing system. ABC has given you the following data that is used in its activity-based costing system: 2. Compute the activity rates for the activity cost pools. (Round your answers to 2 decimal places.) Overhead Costs Wages and salaries Other overhead costs Activity Cost Pool Direct labor support Order processing Activity Rate $359,000 191,000 per DLH Total overhead costs $550,000 per order per Customer support customer Direct labor support Order processing Customer support Other Number of direct labor-bours Number of orders Number of customers an organization-sustaining activity 13.000 DL Hs 590 orders 70 customers Not applicable 3. Compute the overhead costs for the order from Sky Tank, including customer support costs. (Round your intermediate calculations and final answers to 2 decimal places.) Activity Cost Pool Direct labor support Order processing Customer support Total ABC Cost Distribution of Resource Consumption Across Activities Sunport Procssing Support 20% 25% Other 35% 50% Total 100% 100% 15% 15% Wages and salaries Other overhead costs 30% 10% Early in this year, ABC Tank completed an order for a special vertical envelopment tank for a new customer, Sky Tanks. This was the only order from this customer for the whole year. Below is some data conceming that order 4. Prepare report showing the customer margin for Sky Tank. (Negative customer margins should a minus sign. Round your intermediate calculations and final answers to 2 decimal places.) Data Concerning the Sky Tank Order Selling price Units ordered 320 per unit 100 units Sky Tank Customer Margin-ABC Analysis Dim materials rs 2 12DLH unit S 27 per DLH Direct labor rate Costs: Required: Prepare a report showing the first-stage allocations of overhead costs to the activity cost pools. Direct Labor Order Customer Support Processing Support Other Totals Wages and salaries Other overhead ocosts Total cost Customer margin

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

More Books

Students also viewed these Accounting questions

Question

48. Verify the formula given for the Pi of the M/M/k.

Answered: 1 week ago