Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Good morning, Can you help answer a managerial accounting question? I need help answering this question Phoenix Company makes custom covers for air conditioning units

Good morning,

Can you help answer a managerial accounting question? I need help answering this question

Phoenix Company makes custom covers for air conditioning units for homes and businesses. The company uses an activity-based costing system for its overhead costs. The company has provided the following data concerning its annual overhead costs and its activity cost pools:

Overhead Costs:

Production overhead

$100,000

Office expenses

50,000

Total

$150,000

Distribution of Resource Consumption:

Activity Cost Pools

Making Covers

Job Support

Other

Total

Production overhead

40%

42%

18%

100%

Office expenses

12%

60%

28%

100%

The "Other" activity cost pool consists of the costs of idle capacity and organization-sustaining costs. The amount of activity for the year is as follows:

Activity Cost Pool

Annual Activity

Making covers

2,500 yards

Job support

200 jobs

Other

Not applicable

Required:

a) Prepare the first-stage allocation of overhead costs to the activity cost pools by filling in the table below:

Making Covers

Job Support

Other

Total

Production overhead

Office expense

Total

b) Compute the activity rates (i.e., cost per unit of activity) for the Making Covers and Job Support activity cost pools by filling in the table below:

Making Covers

Job Support

Production overhead

Office expense

Total

c)Help me report in good form of a job that involves making 50 yards of covers and has direct materials and direct labour cost of $1,500. The sales revenue from this job is $2,500.

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 Tools For Business Decision Making

Authors: Paul D. Kimmel,  Jerry J. Weygandt,  Jill E. Mitchell

10th Edition

1119791081, 978-1119791089

More Books

Students also viewed these Accounting questions

Question

1. Effort is important.

Answered: 1 week ago