Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

CALCULATOR FUSCE PRINTER VERSION Waterways Problem 04 b-c (Part Level Submission) Direct labor or machine hours may not be the appropriate cost driver for overhead

image text in transcribed
image text in transcribed
image text in transcribed
CALCULATOR FUSCE PRINTER VERSION Waterways Problem 04 b-c (Part Level Submission) Direct labor or machine hours may not be the appropriate cost driver for overhead in all areas of manufacturing due to the complexities of many manufacturing processes. Many compares se activity-based costing (ABC) which uses multiple drivers (items that consume resources) rather than just one driver to apply overhead to their activities. With Anc, a company cant a cost driver that has a direct cause/effect relationship in its applied overhead costs Waterways looked into ABC as a method of costing because of the variety of items it produces and the many different activities in which it is involved. The activities isted below are sample of possible cost pools for Waterways Assembling Payroll Billing Plant supervision Digging trenches Product design Janitorial Purchasing materials Machine maintenance Selling Machine setups Testing Molding Welding Packaging Using the following information, determine the overhead rates and the actual cost and for each of the activity cost pools in a possible ABC system for Waterways (found answer decimal places, c.9. 12.25.) WATERWAYS CORPORATION Expected Use of Cost Drivers per Actual Use of Activity Drivers Activity Cost Pools Estimated Overhead Cost Drivers (b) CALCULATOR PRISEREN PRINTER VEKTOR BACK Using the following information, determine the overhead rates and the actual cost assigned for each of the activity cost pools in a possible ABC system for Waterways (Hound answers to 2 decimal places, e.g. 12.25.) WATERWAYS CORPORATION Expected Use of Cost Activity Cost Estimated Drivers per Actual Use of Pools Cost Drivers Overhead Activity Drivers Irrigation installation Labor cost $1,928.440 13.030 13,010 Machining (all machine use) Machine hours 1,668,750 33,375,000 33,376,000 Customer orders Number of orders 28,600 2.600 2,562 Shipping none (direct) N/A NA traced directly Cost per design 763 Design 6 Selling Number of sales calls 306,000 20,610 20,400 WATERWAYS CORPORATION Activity Based Activity Cost Overhead Pools Rates Irrigation installation Actual Cost Assigned Machining (all machine use) WATERWAYS CORPORATION Activity- Based Activity Cost Overhead Pools Rates Actual Cost Assigned Irrigation installation Machining (all machine use) Customer orders Design Selling LINK TO TEXT LINK TO TEXT

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

Financial Accounting The Basics

Authors: Ilias Basioudis

1st Edition

1138605514, 9781138605510

More Books

Students also viewed these Accounting questions

Question

differentiate the function ( x + 1 ) / ( x ^ 3 + x - 6 )

Answered: 1 week ago