Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

C O Not secure VaultOnWheels Corporation operates a fleet of armored cars that make scheduled pickups and deliveries or its customers in the Phoenix area.

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
C O Not secure VaultOnWheels Corporation operates a fleet of armored cars that make scheduled pickups and deliveries or its customers in the Phoenix area. The company is implementing an activity-based costing system that has four activity cost pools: Travel, Pickup and Delivery. Customer Service, and Other. The measures are miles for the Travel cost pool, number o cost pool, and num Service cost pool. The Other cost pool has no activity measure because it is an organization-sustaining activity. The following costs will be assigned using the activity-based costing system: activity f pickups and deliveries for the Pickup and Delivery ber of customers for the Customer Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses Office expenses Administrative expenses $ 1.140,000 570,000 450,000 480,000 340,000 640,000 Total cost s 3,620,000 The distribution of resource consumption across the activity cost pools is as follows: Pickup and Customer Travel Delivery Service Other Totals 5% 100% 0% 20% 100% 0% 20% 100% 15% 100% 10% Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses Office expenses Administrative expenses 40% 75% 70% 0% 4 5% 5% 10% 0% 85% 0% 10% 20% 100% 40% 100% enter "O" wherever required. Omit the "$" sign in your response.) expenses Office expenses (@Not securel 2. As You Like It Gardening is a small gardening service that uses activity-based costing to estimate costs for pricing and other purposes. The proprietor of the company believes that costs are driven primarily by the size of customer lawns, the size of customer garden beds, the distance to travel to customers, and the number of customers. In addition, the costs of maintaining garden beds depends on whether the beds are low-maintenance beds (mainly ordinary trees and shrubs) or high-maintenance beds (mainly flowers and exotic plants). Accordingly, the company uses the five activity cost pools listed below Activity Cost Pool Caring for lawn Caring for garden beds-low maintenance Square feet of low-maintenance beds Caring for garden beds-high maintenance Square feet of high-maintenance beds Travel to jobs Customer billing and service Square feet of lawn Number of customers The company has already completed its first-stage allocations of costs. The company's annual costs and activities are summarized as follows Estimated Overhead Cost s 85,000 s 37,600 Activity Cost Pool Expected Activity 160,000 square feet of lawn 27,000 square feet of low-maintenance beds Caring for lawn Caring for garden beds-low maintenance S Caring for garden beds-high Travel to jobs Customer billing and service h maintenance 58,380 21.000 square feet of high-maintenance beds s 3,600 7,500 18,000 miles 24 customers e feet of $ 3,600 $ 7,500 21,000 18,000 miles 24 Round your answers to 2 decimal places Omit the "$" sign in your response.) Travel to jobs 3 Larner Corporation is a diversified manufacturer of industrial goods. The system contains the following six activity cost pools and activity rates company's activity-based costing direct labor $8 per direct labor-hour $5 per machine-hour Machine processing Machine setups Production orders Shipment:s S45 per setup $160 per order $120 per shipment $775 per product Activity data have been supplied for the following two products: Total Expected Activity 1.150 2.200 J78 W52 60 50 Direct labor-hours Machine-hours Machine setups Production orders Shipments Product sustaining 18

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_2

Step: 3

blur-text-image_3

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

Advances In Accounting Education Teaching And Curriculum Innovations Volume 23

Authors: Thomas G. Calderon

1st Edition

1789733944, 978-1789733945

More Books

Students also viewed these Accounting questions

Question

discuss different sources of numerical data;

Answered: 1 week ago

Question

design and evaluate an effective survey instrument;

Answered: 1 week ago

Question

administer a survey to an appropriate sample of respondents;

Answered: 1 week ago