Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Groleau Corporation has an activity-based costing system with three activity cost pools--Processing, Setting Up, and other. The company's overhead costs, which consist of factory utilities

image text in transcribed

Groleau Corporation has an activity-based costing system with three activity cost pools--Processing, Setting Up, and other. The company's overhead costs, which consist of factory utilities and Indirect labor, are allocated to the cost pools in proportion to the activity cost pools' consumption of resources. Costs in the Processing cost pool are assigned to products based on machine-hours (MHS) and costs in the Setting up cost pool are assigned to products based on the number of batches. Costs in the other cost pool are not assigned to products. Data concerning the two products and the company's costs and activity-based costing system appear below: Factory utilities (total) $ 34,400 Indirect labor (total) $ 13,000 Distribution of Resource Consumption Across Activity Cost Pools Factory utilities Indirect labor Processing 0.30 0.30 Setting up 0.30 0.50 Other 0.40 0.20 Product S8 Product F1 MHS 3,800 7,700 11,500 Batches gee 7ee 1,6ee Total Sales (total) Direct materials (total) Direct labor (total) Product 58 $ 70, eee $ 20,600 $ 30,500 Product F1 $ 95,400 $ 37,300 $ 38,600 Required: a. Assign overhead costs to activity cost pools using activity-based costing. b. Calculate activity rates for each activity cost pool using activity-based costing. c. Determine the amount of overhead cost that would be assigned to each product using activity-based costing. d. Determine the product margins for each product using activity-based costing. Complete this question by entering your answers in the tabs below. Required A Required B Required Required D Assign overhead costs to activity cost pools using activity-based costing. Activity Cost Pools Processing Setting Up Other Total Factory utilities S 6,960 % $ 17,400 $ 10,440 X $ 34,800 Indirect labor 4,960 X 6,200 X 1,240 X $ 12,400 Total S 11,920 $ 23,600 S 11,680 $ 47,200 Required A Required B >

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

Principles Of Accounting 2

Authors: OpenStax

1st Edition

0357366808, 9780357366806

More Books

Students also viewed these Accounting questions