Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please explain how you got cost of supplies, direct manufacturing labor costs, machine operations, setups, etc. Thank you Fastprint classifies Its various printing jobs as

Please explain how you got cost of supplies, direct manufacturing labor costs, machine operations, setups, etc. Thank you

image text in transcribed

Fastprint classifies Its various printing jobs as Question list Question 5 Z Question 6 Question 7 Z Question 8 Z Question 9 Question 10 O Question 11 O Question 12 Question 13 Question 14 O Question 15 O Question 16 O Question 17 Help me solve this Fastprint Corporation owns a small printing press that prints lealets, brochures, and advertising materials standard jobs or special jobs O (Click the icon to view additional information) To see how activity-based costing would affect the costs of standard and special jobs, Fastprint collects the following information for the fiscal year 2017 that just ended (Click the icon to view the information) Read the Equirements Requirement 1. Calculate the cost of a standard job and a special job under the simple costing system. (Round interim calculations to three decimal places, XXXX and your final answers to the nearest cent, X More info Fastprints simple job-costing system has two direct-cost categories (direct materials and direct labor) end a single indirect-cost pool Fastprint operates at capacity and allocates ell indirect costs using printing machine-hours es the allocation base. Fastprint is concerned about the accuracy of the costs assigned to standard and special jobs and therefore is planning to implement an activity based costing systeny Fastprints AEC system would have the same categories as its simple costing system. However, instead of a single indirect-cost pool there would now be six categories for assigning indirect costs: design, purchasing, setup, printing machine operations, marketing, and administration Simple Costing System Cost of supplies per job Direct manufacturing labor cost per job Indirect cost allocated to each job Total costs Standard Job 220.00 200.00 7Q_72 1,212.72 Special Job 330.00 270.00 79272 1,392.72 print Requirement 2. Calculate the cost of a standard job and a special job under the activity-based costing system Begin by calculating the allocation rates for the following activities. (Abbreviations used: S = Dollar, 0M = Direct manufacturing, Qty. = Quantity. Round the allocation rates to the nearest cent for all activities excep Machine operations S Setups Purchase orders Administration s s Total cost of activity 435,000 400,000 27,380 140,700 s Total qty consumed 15,000 12,500 335,000 ABC Allocation rate 29.00 per machine-hour 3200 per setup-hour 37.00 per purchase order 042000 per Sot 0M labor cost Data table Standard Job Special Job Now, completing the table for total costs of standard jobs, special jobs and then cost per job for each type of job (Round your answers to the Standard Job ABC Costing System Cost of supplies Direct manufacturing labor costs Indirect costs allocated: Machine operations Setups Purchase orders Design Marketing Administration Total costs Get more help . Requirements 2. 3. 4. Calculate the cost of a standard job end a special job under Calculate the cost of a standard job end a special job under Compare the costs of e standard job and e special job In simple and activity-based costing systems differ in the cost How might Fastprint use the new cost information from its manage ts business? print Done 10 11 12 13 14 Number of printing jobs Price per job Cost of supplies per job Direct labor costs job Printing machine-hours per job Cost of printing machine operations Setup-hours per job Setup costs Total number of purchase orders Purchase order costs Design costs Marketing costs as a percentage of revenues Administration costs 1,000 1,600 s 220 s 200 s 13,000 s l,goo 20,000 s 6% Etext pages Total 435,000 400,000 27,380 33,000 153,000 140,700 Done Cause-and-Effect Relationship Between Allocation Base and Activity Cost Indirect costs of operating printing machines increase with printing machine-hours Indirect setup costs increase With setup-hours Indirect purchase order costs increase With number of purchase orders Design costs are allocated to standard and special jobs based on a special study of the design department Demand for administrative resources increases with direct labor costs

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_2

Step: 3

blur-text-image_3

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

Financial And Managerial Accounting The Basis For Business Decisions

Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello

19th Edition

1260247937, 978-1260247930

More Books

Students also viewed these Accounting questions