Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Pure Cone Sugar Company manufactures three products (white sugar brown suox and powdered sugar) in a continuous production process. Senior management has asked the controller

image text in transcribed
image text in transcribed
Pure Cone Sugar Company manufactures three products (white sugar brown suox and powdered sugar) in a continuous production process. Senior management has asked the controller to conduct an activity-based costing study. The Controller identified the amount of factory overhead required by the critical activities of the organization as follows: Activity Activity Costs Production $247.500 Setup 48.000 Inspection Shipping 69.100 Customer service 27,600 $400.000 The activity bases identified for each activity was follows: Activity Activity Base Machine tours Number of setups Inspection Number of inspections Shipping Number of customer orders Number of customer service service The activity base usage quantities and units produced for the three products were determined from corporate records and are as follows: The activity-base usage quantities and units produced for the three products were determined from corporate records and are as follows: Number of Number of Machine Number of Number of Customer Customer Units Hours Setups Inspections Service Orders Requests white sugar 2,000 50 100 410 25 8,000 Brown sugar 1,250 70 160 1.100 200 5,000 Powdered sugar 1,250 80 240 800 120 5,000 Total 4,500 200 500 2,310 345 18,000 Each product requires 0.25 machine hour per unit. Required: 1. Determine the activity rate for each activity Activity Rate Production /mh Setup setup Inspection insp. Shipping /cust. ord Customer Service /reg 2. Determine the total and per unit activity costs for all three products. Round "Activity cost per unit" answers to two decimal places. White Sugar Brown Sugar Powdered Sugar Total activity cost Activity cost per unit

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

A Compilation Of University Level Assignments Marketing Audit Approach

Authors: Emeka Anyaduba

1st Edition

1475098057, 978-1475098051

More Books

Students also viewed these Accounting questions