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Bachrodt Corporation uses activity-based costing to compute product margins. Overhead costs have already been allocated to the company's three activity cost pools--Processing, Supervising, and Other.
Bachrodt Corporation uses activity-based costing to compute product margins. Overhead costs have already been allocated to the company's three activity cost pools--Processing, Supervising, and Other. The costs in those activity cost pools appear below: Processing Supervising Other $21,600 $ 3,700 $10,700 Processing costs are assigned to products using machine-hours (MHs) and Supervising costs are assigned to products using the number of batches. The costs in the other activity cost pool are not assigned to products. Activity data appear below MHS Batches (Processing) (Supervising) Product 47 3,700 400 Product vo 6,300 10,000 600 1,000 Total Finally, sales and direct cost data are combined with Processing and Supervising costs to determine product margins. Sales (total) Direct materials (total) Direct labor (total) Product Product Y7 vo $102,200 $78,900 $ 40,800 $39,100 $ 47,200 $22,300 What is the product margin for Product Y7 under activity-based costing? 0 -$3,800 0 $4,728 0 $14,200 0 $6,208 Designing a new backpack at an outdoor sports equipment company is an example of a: Multiple Choice Batch-level activity. Facility-level activity. Unit-level activity. Product-level activity. The following data have been provided by Letze Corporation from its activity-based costing accounting system: $460,000 Factory supervision Indirect factory labor $220,000 Distribution of Resource Consumption across Activity Cost Pools: Activity Cost Pools Factory supervision Indirect factory labor Batch Set- Up 55% 60% Expediting 35% 20% Other 10% 20% Total 100% 100% The "Other" activity cost pool consists of the costs of idle capacity and organization-sustaining costs that are not assigned to products. How much factory supervision and indirect factory labor cost would be assigned to the Batch Set-Up activity cost pool? Multiple Choice $391,000 $340,000 oooo $680,000 $385,000 The following data have been provided by Letze Corporation from its activity-based costing accounting system: $460,000 Factory supervision Indirect factory labor $220,000 Distribution of Resource Consumption across Activity Cost Pools: Activity Cost Pools Factory supervision Indirect factory labor Batch Set- Up 55% 60% Expediting Other 35% 10% 20% 20% Total 100% 100% The "Other" activity cost pool consists of the costs of idle capacity and organization-sustaining costs that are not assigned to products. How much factory supervision and indirect factory labor cost would NOT be assigned to products using the activity-based costing system? Multiple Choice 1 0 $460,000 0 $90,000 0 $0 0 $220,000
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