Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Caldwell Home Applances Inc. is estimating the activity cost associated with producing ovens and refrigerators. The Indirect labor can be traced into four separate activity

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Caldwell Home Applances Inc. is estimating the activity cost associated with producing ovens and refrigerators. The Indirect labor can be traced into four separate activity pools, based on time records provided by the employees. The budgeted activity cost and activity-base information are provided as follow Activity 2 Procurement 3 Scheduling Materials handling Product development Activity Pool Cost Activity Base $65.23700 Number of purchase orders 5933.00 Number of production orders 13,032.00 Number of moves 7,035.00 Number of engineering changes $87.237.00 % Total cost The estimated activity-base usage and unit information for two product lines was determined as follows: Number of Purchase Orders Production Orders Moves Engineering Change Orders Units Ovens 370 126 204 60 638 Refrigerators 221 81 158 45 627 Totals 591 207 362 105 1,265 Required: Complete the Activity Tables for ovens and refrigerators, a. Determine the activity rate for each activity cost pool. Enter these rates in the Activity Rate columns b. Use the activity rates in (a) to determine the activity-based cost per unit of each product Round the per-unit rates to the nearest cent. LOOK a. Determine the activity rate for ovens activity. Enter these rates in the Activity Rate column, b. Use the activity rates in (@) to determine the total and per-unit activity costs associated with ovens product. Round the per-unit rates nearest cent the Ovens Activity Activity Base Activity Activity Usage Rate Cost Procurement S purch. ord. S 370 purch.ords. 126 prod. ords. Scheduling S /prod. ord. Materials 204 moves Imove handling $ Product 60 ECOs $ ECO development Total $ Unit volume Activity cost per unit $ Refrigerators Activity Activity Base Activity Activity Usage Rate Cost Procurement S purch. ord. s 221 purch ords 81 prod. ords. Scheduling $ prod. ord. Materials 158 moves $ Imove handling Product 45 ECOS IECO development Total Unit volume Activity cost per unit $

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

Frank Woods Business Accounting Volume 1

Authors: Alan Sangster Lewis Gordon Frank Wood

14th Edition

1292208627, 9781292208626

More Books

Students also viewed these Accounting questions

Question

How did ERP system bring Career Opportunities?

Answered: 1 week ago

Question

=+c) Should Shawn purchase the long-range predictions?

Answered: 1 week ago

Question

How does the EEOC interpret the national origin guidelines?

Answered: 1 week ago

Question

What is the purpose of the OFCCP?

Answered: 1 week ago