Question
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 |
A duration driver is:
A measure of the amount of time required to perform an activity. | |
An activity measure that is used for the life of the company. | |
An activity measure that is used for the life of an activity-based costing system. | |
A simple count of the number of times an activity occurs. |
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