Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Howell Corporation's activity based costing system has three activity cost pools--Machining. Setting Up, and other. The company's overhead costs, which consist of equipment depreciation and

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Howell Corporation's activity based costing system has three activity cost pools--Machining. Setting Up, and other. The company's overhead costs, which consist of equipment depreciation and indirect labor, are allocated to the cost pools in proportion to the activity cost pools' consumption of resources. Equipment depreciation (total) Indirect labor (total) $ 27,200 $ 7,840 Distribution of Resource Consumption Across Activity Cost Pools Equipment depreciation Indirect labor Machining 0.40 0.40 Setting Up Other 0.300 .30 0.30 0.30 Costs in the Machining 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. Product S4 Product Co MS 13,200 7,000 20,200 Batches 400 1,200 1,600 Total Additional data concerning the company's products appears below: Sales (total) Direct materials (total) Direct labor (total) Product 54 $81,400 $27,000 $37,100 Product co $ 81,500 $ 28,400 $ 32.600 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. Equipment depreciation Indirect labor 0.40 0.30 0.30 Costs in the Machining cost pool are assigned to products based on machine-hours (MHs) and costs in the assigned to products based on the number of batches. Costs in the Other cost pool are not assigned to pre Product S4 Product Co Total MHS 13,200 7,000 20,200 Batches 400 1,200 1,600 Additional data concerning the company's products appears below: Sales (total) Direct materials (total) Direct labor (total) Product S4 $81,400 $ 27,000 $37,100 Product Co $ 81,500 $ 28,400 $ 32,600 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 costi 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 C Required D Assigh overhead costs to activity cost pools using activity-based costing. Activity Cost Pools Machining Setting Up Other Total Equipment depreciation Indirect labor Total Required B > Costs in the Machining cost pool are dssiyNCU IU assigned to products based on the number of batches. Costs in the Other cost pool are not assign Product S4 Product Co MHS 13,200 7,000 20,200 Batches 400 1,200 1,600 Total Additional data concerning the company's products appears below: Sales (total) Direct materials (total) Direct labor (total) Product S4 $81,400 $27,000 $37,100 Product Co $ 81,500 $ 28,400 $ 32,600 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-bas 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 C Required D Calculate activity rates for each activity cost pool using activity-based costing. (Round your answers to 2 Activity Cost Pools Machining Setting up Activity Rate per MH per batch assigned to products based on the number of batches. UUSIS Product S4 Product Co MHS 13,200 7,000 20,200 Batches 400 1,200 1,600 Total Additional data concerning the company's products appears below: Sales (total) Direct materials (total) Direct labor (total) Product S4 $81,400 $27,000 $37,100 Product Co $ 81,500 $ 28, 400 $ 32,600 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 activit 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 C Required D Determine the amount of overhead cost that would be assigned to each product using activity-based intermediate calculations to 2 decimal places.) Amount of Overhead Cost Product S4 Product CO ts in the Machining cost pool are assigned to products based on machine-hours (MHS) and COSIS III igned to products based on the number of batches. Costs in the Other cost pool are not assigned to roduct S4 roduct co Cotal MHS 13,200 7,000 20,200 Batches 400 1,200 1,600 aditional data concerning the company's products appears below: Sales (total) Direct materials (total) Direct labor (total) Product S4 $81,400 $ 27,000 $37,100 Product CO $ 81,500 $ 28,400 $ 32,600 equired: . Assign overhead costs to activity cost pools using activity-based costing. Calculate activity rates for each activity cost pool using activity-based costing. - Determine the amount of overhead cost that would be assigned to each product using activity-based 3. 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 C Required D Determine the product margins for each product using activity-based costing. (Round intermediate calculation Required D places.) Product Margin Product S4 Product CO

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_2

Step: 3

blur-text-image_3

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

An Introduction To Modern Financial Reporting Theory

Authors: Brian A Rutherford

1st Edition

9780761966074

More Books

Students also viewed these Accounting questions