Question
Doles Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products. Activity Cost Pools Activity Rate Setting up batches
Doles Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products.
Activity Cost Pools | Activity Rate | |||
Setting up batches | $ | 67.82 | per batch | |
Processing customer orders | $ | 24.88 | per customer order | |
Assembling products | $ | 11.41 | per assembly hour | |
|
Data concerning two products appear below:
Product K52W | Product X94T | |
Number of batches | 66 | 53 |
Number of customer orders | 46 | 31 |
Number of assembly hours | 419 | 162 |
|
Required:
How much overhead cost would be assigned to each of the two products using the company's activity-based costing system? (Round your intermediate calculations and final answers to 2 decimal places.)
Merone Company allocates materials handling cost to the company's two products using the below data:
Modular Homes | Prefab Barns | |
Total expected units produced | 5,200 | 8,200 |
Total expected material moves | 520 | 120 |
Expected direct labor-hours per unit | 720 | 220 |
|
The total materials handling cost for the year is expected to be $221,920.
If the materials handling cost is allocated on the basis of material moves, the total materials handling cost allocated to the modular homes is closest to: (Round your intermediate calculations to 2 decimal places.)
Olmo, Inc., manufactures and sells two products: Product K0 and Product H9. The annual production and sales of Product of K0 is 1,000 units and of Product H9 is 1,000 units. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity:
Activity Cost Pools | Activity Measures | Estimated Overhead Cost | Expected Activity | ||||
Product K0 | Product H9 | Total | |||||
Labor-related | DLHs | $ | 549,408 | 10,000 | 5,000 | 15,000 | |
Production orders | orders | 52,419 | 1,100 | 200 | 1,300 | ||
Order size | MHs | 835,016 | 2,800 | 3,200 | 6,000 | ||
$ | 1,436,843 | ||||||
|
The overhead applied to each unit of Product K0 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.)
Item 7
Item 7
Vanvalkenburg, Inc., manufactures and sells two products: Product Q5 and Product J0. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity:
Estimated | Expected Activity | |||||
Activity Cost Pools | Activity Measures | Overhead Cost | Product Q5 | Product J0 | Total | |
Labor-related | DLHs | $ | 191,748 | 3,000 | 2,800 | 5,800 |
Production orders | orders | 70,536 | 300 | 500 | 800 | |
Order size | MHs | 295,592 | 4,300 | 4,500 | 8,800 | |
$ | 557,876 | |||||
|
The activity rate for the Production Orders activity cost pool under activity-based costing is closest to:
Forner, Inc., manufactures and sells two products: Product Z1 and Product Z8. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity:
Estimated | Expected Activity | |||||
Activity Cost Pools | Activity Measures | Overhead Cost | Product Z1 | Product Z8 | Total | |
Labor-related | DLHs | $ | 112,190 | 600 | 2,000 | 2,600 |
Machine setups | setups | 40,440 | 500 | 700 | 1,200 | |
Order size | MHs | 609,770 | 3,000 | 3,200 | 6,200 | |
$ | 762,400 | |||||
|
The activity rate for the Machine Setups activity cost pool under activity-based costing is closest to:
rev: 03_25_2018_QC_CS-119201
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started