Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

CHERAS Exercise 4-10 (Video) Kragan Clothing Company manufactures its own designed and labeled athletic wear and ses its products through catalog sales and retail outlets.

image text in transcribed
CHERAS Exercise 4-10 (Video) Kragan Clothing Company manufactures its own designed and labeled athletic wear and ses its products through catalog sales and retail outlets. While Kregar has for your weddi-beset costing in its manufacturing activities, it has always used traditional costing in assigning its selling costs to its product lines. Selling costs have traditionely been to gens product a rate of 70% of direct materials costs. Its direct materials costs for the month of March for Kragan's high-intensity line of athletic wear 401,000. The company has decided to death based costing to its selling costs. Data relating to the high-intensityine of products for the month of March are as follows Overhead Number of Cost Drivers Activity Cost Pools Cost Drivers Rate Used per Activity Sales commissions Dollar sales $0.05 per dollar sales $925,000 Advertising-TV Minutes $300 per minute 270 Advertising-Internet Column inches $10 per column inch 2,200 Catalogs Catalogs mailed $2.50 per catalog 59,600 Cost of catalog sales Catalog orders $1 per catalog order 8.550 Credit and collection Dollar sales $0.03 per dollar sales 1926,000 Compute the selling costs to be assigned to the "high-intensity line of athletic wear for the month of March (1) using the traditional product costing system (erea materia con le recomww) and (2) using activity-based costing Traditional product costing Activity-based costing Selling cost to be assigned WILARININ LINK TO TEXT LINK TO TEXT LINK TO TEXT By what amount does the traditional product costing system undercost or overcost the high intensity product line? $ Click If you would like to show Work for this questions Open Shok Wack LINK TO TEXT LINK TO TEXT LINK TO TEXT Question Attempts Unlimited

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

Organizing Smart Buildings And CitiesPromoting Innovation And Participation

Authors: Elisabetta Magnaghi, VĂ©ronique Flambard, Daniela Mancini, Julie Jacques, Nicolas Gouvy

10th Edition

3030606066, 9783030606060

More Books

Students also viewed these Accounting questions