Question
Hello, i completed some homework questions and wanted to compare. The following questions are below. Thanks 1) Bill Cobb Corporation had the following activities, pooled
Hello, i completed some homework questions and wanted to compare. The following questions are below. Thanks
1)
Bill Cobb Corporation had the following activities, pooled costs, and physical flow of driver units. The company uses activity-based costing. Activities Pooled Costs Physical Flow of Driver Units
Account inquiry (hours) | $400,000 | 5,000 |
Account billing (lines) | $280,000 | 2,000,000 |
Account verification (accounts) | $150,000 | 20,000 |
Correspondence (letters) | $50,000 | 2,000 |
The above activities are used by departments X and Y as follows:
X | Y | |
Account inquiry (hours) | 500 hours | 800 hours |
Account billing (lines) | 250,000 lines | 200,000 lines |
Account verification (accounts) | 2,000 accounts | 1,000 accounts |
Correspondence (letters) | 200 letters | 1,000 letters |
How much of the account verification cost will be assigned to Department Y?
How much of the correspondence cost will be assigned to Department X?
2)
Babcock Industries uses departmental overhead rates to allocate its manufacturing overhead to jobs. The company has two departments: Assembly and Sanding. The Assembly Department uses a departmental overhead rate of $20 per machine hour, while the Sanding Department uses a departmental overhead rate of $15 per direct labour hour. Job 396 used the following direct labour hours and machine hours in the two departments:
Actual results | Assembly Department | Sanding Department |
Direct labour hours used | 4 | 3 |
Machine hours used | 9 | 5 |
The cost for direct labour is $25 per direct labour hour and the cost of the direct materials used by Job 396 is $1,200. What was the total cost of Job 396 if Babcock Industries used the departmental overhead rates to allocate manufacturing overhead?
3)
Wallace Printing has contracts to complete weekly supplements required by forty-six customers. For the year 2016, manufacturing overhead cost estimates total $420,000 for an annual production capacity of 10 million pages.
For 2016 Wallace Printing decided to evaluate the use of additional cost pools. After analyzing manufacturing overhead costs, it was determined that number of design changes, setups, and inspections are the primary manufacturing overhead cost drivers. The following information was gathered during the analysis:
Cost pool | Manufacturing overhead costs | Activity level |
Design changes | $60,000 | 200 design changes |
Setups | 320,000 | 4,000 setups |
Inspections | 40,000 | 16,000 inspections |
Total manufacturing overhead costs | $420,000 |
During 2016, two customers, Wayward Insurance and Hapless Systems, are expected to use the following printing services:
Activity | Wayward Insurance | Hapless Systems |
Pages | 60,000 | 76,000 |
Design changes | 10 | 2 |
Setups | 20 | 10 |
Inspections | 30 | 38 |
Using activity-based costing to allocate overhead costs, what is the total manufacturing overhead cost estimate for Hapless Systems during 2016?
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