Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

need help with C Question 5 of 8 0.4/1 Marigold Visuals produces Tablets and Books. Total overhead costs traditionally have been allocated on the basis

need help with C image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Question 5 of 8 0.4/1 Marigold Visuals produces Tablets and Books. Total overhead costs traditionally have been allocated on the basis of direct labor hours. After implementing activity-based costing, managers determined the following cost pools and cost drivers. They also decided that general costs should no longer be allocated to products. Activity Pool Binding Printing Product design General Total overhead costs Department Costs $297,000 955,500 234,000 727,500 $2,214,000 Cost Driver Number of units Machine hours Change orders None Other information is as follows: Books Units Direct materials cost per unit Direct labor cost per unit Direct labor hours Machine hours Change orders Tablets 62,500 $5.00 $7.00 30,000 150,000 1,500 30,000 $10 $14.00 19,200 144,000 2,400 Machine hours Change orders 150,000 1,500 144,000 2,400 Marigold's managers have gathered the following information about selling and administrative costs. Activity Pool Shipping Advertising Commissions Total selling and administrative costs Total Cost $360,000 187.500 168,125 $715,625 Cost Driver Pounds shipped Number of mailings Sales price Tablets Weight Advertising mailings Sales commission Selling price per unit 20,000 pounds 25,000 5% of sales price Books 40,000 pounds 100,000 8.00% of sales price $75 $40 Your answer is correct. Jsing the information given here, calculate the product margin per unit for Tablets and Books using the traditional costing =ystem. (Round all rates and final answers to 2 decmial places, e.g. 15.25.) Tablets Books Product margin per unit $ 6.4 $ 22.2 eTextbook and Media Assistance Used Attempts: 1 of 3 used Your answer is correct. Prepare a report like the one in Exhibit 7-12, Panel A. (Round % of total margin to 1 decimal place, eg. 15.2%) Prepare a report like the one in Exhibit 7-12, Panel A. (Round % of total margin to 1 decimal place, eg. 15.2%.) Tablets Books Sales price 40 75 Product costs 33.60 52.80 6.40 22.20 Product margin Unit sales 62500 30000 400000 $ Total margin 666000 37.5 se 62.5 % % of total margin (c)(i) Calculate ABC rates. (Round answers to 2 decimal places, eg. 15.25.) S&A Cost ABC rates /lb. Shipping $ Advertising /mailing Product Cost ABC rates $ Tablets per unit $ Books per unit e Textbook and Media

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

ISE Introductory Financial Accounting For Business

Authors: Thomas P. Edmonds, Christopher Edmonds

2nd Edition

1260575306, 9781260575309

More Books

Students also viewed these Accounting questions

Question

What research interests does the faculty member have?

Answered: 1 week ago