Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Jardon Painting paints the interiors and exteriors of homes and commercial buildings. The company uses an activity-based costing system for its overhead costs. The company

Jardon Painting paints the interiors and exteriors of homes and commercial buildings. The company uses an activity-based costing system for its overhead costs. The company has provided the following data concerning its activity-based costing system.

Activity Cost Pool

Activity Measure

Annual Activity

Painting..............................

Square meters

30,000

square meters

Job support.........................

Jobs

1,100

jobs

Other..................................

None

Not applicable

The Other activity cost pool consists of the costs of idle capacity and organization-sustaining costs.

The company has already finished the first stage of the allocation process in which costs were allocated to the activity cost centers. The results are listed below:

Job

Painting

Support

Other

Total

Total......................

$150,000

$110,000

$75,000

$335,000

Required:

  1. Compute the activity rates (i.e., cost per unit of activity) for the Painting and Job Support activity cost pools by filling in the table below. Round off all calculations to the nearest whole cent.
  2. Prepare a Product Margin report for ONE job that involves painting 400 square meters and has direct materials cost of $1,000 and direct labor cost of $1,190. The total sales revenue from this job is $4,600.

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

More Books

Students also viewed these Accounting questions

Question

3. What should a contract of employment contain?

Answered: 1 week ago

Question

1. What does the term employment relationship mean?

Answered: 1 week ago