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Can you help me out with my HW, it's attached, I don't know how to do any of it and the textbook is ambiguous with
Can you help me out with my HW, it's attached, I don't know how to do any of it and the textbook is ambiguous with its formulas to figure out these totals. Can you explain it as well next to each answer & calculations? Thank you. The questions are highlighted in yellow, with the specific amounts needed to be calculated underneath?
Fogerty Company makes two products, titanium Hubs and Sprockets. Data regarding the two products follow: Direct LaborHours per Annual Unit Production Hubs 0.80 25,000 units Sprockets 0.40 58,000 units Additional information about the company follows: a. Hubs require $37 in direct materials per unit, and Sprockets require $14. b. The direct labor wage rate is $11 per hour. c. Hubs are more complex to manufacture than Sprockets and they require special equipment. d. The ABC system has the following activity cost pools: Activity Estimated Activity Cost Pool (Activity Measure) Overhead Cost Machine setups (number of setups) $27,720 140 Special processing (machine-hours) $120,000 4,800 0 4,800 General factory (organization-sustaining) $321,600 NA NA Required: 1. Compute the activity rate for each activity cost pool. Hubs Sprockets 112 NA Total 252 2. Determine the unit product cost of each product according to the ABC system. (Round intermediate calculations and final answers to 2 decimal places.) Worley Company buys surgical supplies from a variety of manufacturers and then resells and delivers these supplies to hundreds of hospitals. Worley sets its prices for all hospitals by marking up its cost of goods sold to those hospitals by 7%. For example, if a hospital buys supplies from Worley that had cost Worley $100 to buy from manufacturers, Worley would charge the hospital $107 to purchase these supplies. For years, Worley believed that the 7% markup covered its selling and administrative expenses and provided a reasonable profit. However, in the face of declining profits Worley decided to implement an activity-based costing system to help improve its understanding of customer profitability. The company broke its selling and administrative expenses into five activities as shown below: Activity Cost Pool (Activity Measure) Customer deliveries (Number of deliveries) Manual order processing (Number of manual orders) Electronic order processing (Number of electronic orders) Line item picking (Number of line items picked) Other organization-sustaining costs (None) Total Cost $ Total selling and administrative expenses $ 332,000 Total Activity 4,000 deliveries 355,000 5,000 orders 300,000 12,000 orders 798,000 420,000 line items 620,000 2,405,000 Worley gathered the data below for two of the many hospitals that it servesUniversity and Memorial (both hospitals purchased a total quantity of medical supplies that had cost Worley $33,000 to buy from its manufacturers): Activity Activity Measure Number of deliveries Number of manual orders Number of electronic orders Number of line items picked University 14 0 12 180 Memorial 28 49 0 210 Required: 1. Compute the total revenue that Worley would receive from University and Memorial. The operations vice president of Security Home Bank has been interested in investigating the efficiency of the bank's operations. She has been particularly concerned about the costs of handling routine transactions at the bank and would like to compare these costs at the bank's various branches. If the branches with the most efficient operations can be identified, their methods can be studied and then replicated elsewhere. While the bank maintains meticulous records of wages and other costs, there has been no attempt thus far to show how those costs are related to the various services provided by the bank. The operations vice president has asked your help in conducting an activity-based costing study of bank operations. In particular, she would like to know the cost of opening an account, the cost of processing deposits and withdrawals, and the cost of processing other customer transactions. The Westfield branch of Security Home Bank has submitted the following cost data for last year: Teller wages $ 159,000 Assistant branch manager salary 73,000 Branch manager salary 85,000 Total $ 317,000 Virtually all other costs of the branchrent, depreciation, utilities, and so onare organization sustaining costs that cannot be meaningfully assigned to individual customer transactions such as depositing checks. In addition to the cost data above, the employees of the Westfield branch have been interviewed concerning how their time was distributed last year across the activities included in the activity-based costing study. The results of those interviews appear below: Distribution of Resource Consumption Across Activities Opening Accounts Processing Deposits and Withdrawals Processing Other Customer Other Transactions Activities Teller wages 4 % 75 % 15 % 6 % 100% Assistant branch manager salary 11 % 11 % 29 % 49 % 100% Branch manager salary 4 % 0 % 19 % 77 % 100% The manager of the Westfield branch of Security Home Bank has provided the following data concerning the transactions of the branch during the past year: Activity Total Activity at the Westfield Branch Opening accounts 250 accounts opened Processing deposits and withdrawals 53,500 deposits and withdrawals processed Processing other customer transactions 1,400 other customer transactions processed Totals Required: 1. Compute the activity rates for the activity-based costing system. (Round your answers to 2 decimal places.)Step by Step Solution
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