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McCaskey Corporation uses an activity-based costing system with the following three activity cost pools: Activity Cost Pool Total Activity Fabrication 30,000 machine-hours Order processing 375

McCaskey Corporation uses an activity-based costing system with the following three activity cost pools:

Activity Cost Pool

Total Activity

Fabrication

30,000

machine-hours

Order processing

375

orders

Other

N/A

The Other activity cost pool is used to accumulate costs of idle capacity and organization-sustaining costs.

The company has provided the following data concerning its costs:

Wages and salaries

$451,000

Depreciation

142,000

Occupancy

168,000

Total

$761,000

The distribution of resource consumption across activity cost pools is given below:

Activity Cost Pools

Fabrication

Order Processing

Other

Total

Wages and salaries

10%

80%

10%

100%

Depreciation

20%

15%

65%

100%

Occupancy

5%

75%

20%

100%

The activity rate for the Fabrication activity cost pool is closest to:

$6.34 per machine-hour

$2.73 per machine-hour

$0.34 per machine-hour

$1.94 per machine-hour

Spendlove Corporation has provided the following data from its activity-based costing system:

Activity Cost Pool

Total Cost

Total Activity

Assembly

$1,660,260

59,000

machine-hours

Processing orders

$69,455.70

2,290

orders

Inspection

$126,338

1,810

inspection-hours

The company makes 780 units of product S78N a year, requiring a total of 1,140 machine-hours, 64 orders, and 36 inspection-hours per year. The product's direct materials cost is $58.21 per unit and its direct labor cost is $14.69 per unit. The product sells for $124.00 per unit.

According to the activity-based costing system, the product margin for product S78N is: (Round your intermediate calculations to 2 decimal places.)

$39,858.00

$3,324.48

$5,837.28

$5,265.60

Matt Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A is 10,000 units and of Product B is 8,500 units. There are three activity cost pools, with total cost and total activity as follows:

Total Activity

Activity Cost Pool

Total Cost

Product A

Product B

Total

Activity 1

$31,280

190

490

680

Activity 2

$47,040

880

240

1,120

Activity 3

$131,200

850

3,250

4,100

The activity-based costing cost per unit of Product A is closest to: (Round your intermediate calculations to 2 decimal places.)

$.79

$5.89

$11.28

$7.29

The controller of Ferrence Company estimates the amount of materials handling overhead cost that should be allocated to the company's two products using the data that are given below:

Wall Mirrors

Specialty Windows

Total expected units produced

14,300

1,900

Total expected material moves

1,430

1,800

Expected direct labor-hours per unit

14

4

The total materials handling cost for the year is expected to be $16,812.20.

If the materials handling cost is allocated on the basis of direct labor-hours, how much of the total materials handling cost would be allocated to the Wall Mirrors? (Round your intermediate calculations to 4 decimal places.)

$11,035

$9,386

$16,196

$14,363

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