Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Hudson Enterprises makes a variety of products that it sells to other businesses. The company's activity- based costing system has four activity cost pools

image text in transcribed

Hudson Enterprises makes a variety of products that it sells to other businesses. The company's activity- based costing system has four activity cost pools for assigning costs to products and customers. Details concerning thatactivity-based costing system are listed below. Activity Cost Pool Supporting assembly Processing batches Processing orders Serving customers Activity Measure Direct labor-hours (DLHS) Number of batches Number of orders. Number of customers Activity Rate $6.25 per DLH $181.40 per batch $54.00 per order $2,574.00 per customer The cost of serving customers, $2,574.00 per customer, is the cost of serving a customer for one year. Baker Corporation buys only one of the company's products. The details of last year's purchases of this product are listed below: Number of units purchased Number of batches Number of orders Direct labor-hour requirement Selling price Direct materials cost Direct labor cost 900 units 9 batches 4 orders 0.15 DLHS per unit $23.95 per unit $7.00 per unit $2.35 per unit Required: show your work- 14 points a. According to the activity-based costing system, what is the cost of the "Supporting assembly" activity for Baker Corporation for the year? b. According to theactivity-based costing system, what is the cost of the "Processing batches" activity for Baker Corporation for the year? c. According to theactivity-based costing system, what is the cost of the "Processing orders" activity for Baker Corporation for the year? d. According to theactivity-based costing system, what is the cost of the "Servicing customers" activity for Baker Corporation for the year? e. What is the customer margin on sales to Baker Corporation for the year?

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

Managerial Accounting

Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer

13th Edition

978-0073379616, 73379611, 978-0697789938

More Books

Students also viewed these Accounting questions