Question 2 Not complete Marked out of 1.00 Flag question ABC-A Service Application Grand Haven is a senior living community that offers a full range of services including independent living, assisted living, and skilled nursing care. The assisted living division provides residential space, meals, and medical services (MS) to its residents. The current costing system adds the cost of all of these services (space, meals, and MS) and divides by total resident days to get a cost per resident day for each month. Recognizing that MS tends to vary significantly among the residents, Grand Haven's accountant recommended that an ABC system be designed to calculate more accurately the cost of MS provided to residents. She decided that residents should be classified into four categories (A, B, C, D) based on the level of services received, with group A representing the lowest level of service and D representing the highest level of service. Two cost drivers being considered for measuring MS costs are number of assistance calls and number of assistant contacts. A contact is registered each time an assistance professional provides medical services or aid to a resident. The accountant has gathered the following data for the most recent annual period: Resident Classification Annual Resident Days Annual Assistance Hours Number of Assistance Contacts 8,760 15,000 60,000 6,570 20,000 52,000 4.380 22,500 52,000 2.190 32.500 52.000 21,900 90,000 216,000 A B C D Other data: Total cost of medical services for the period $3,000,000 Total cost of meals and residential space $2,142,500 a. Determine the ABC cost of a resident day for each category of residents using assistance hours as the cost driver. Round answer below to the nearest dollar. Round answer below to the nearest dollar. Medical services cost per assistance hour $ 0 NOTE: Use your rounded answer above to compute answers below. Round final answers to the nearest dollar. Per Day Costs Medical Services Meals and Residential Total Class A $ 0 $ 0 $ 0 Class B Class C Class D 0 0 0 0 0 0 0 0 0 b. Determine the ABC cost of a resident day for each category of residents using assistance contacts as the cost driver. Round answer below to the nearest dollar. Medical services cost per assistance contacts $ 0 NOTE: Use your rounded answer above to compute answers below. Round final answers to the nearest dollar. Per Day Costs Medical Services Meals and Residential Total Class A $ 0 $ 0$ Class B 0 0 Class C 0 Class D 0 0 0 0 0 0 0 Question 3 Not complete Marked out of 1.00 Flag question Two-Stage ABC for Manufacturing Merlot Company has determined its activity cost pools and cost drivers to be the following: Cost Pools Setup $140,000 Material handling 32,000 Machine operation 600,000 Packing 60,000 Total indirect manufacturing costs $832,000 Cost drivers Setups 350 Material moves 640 Machine hours 20,000 Packing orders 1,200 One product made by Merlot, metal casements, used the following activities during the period to produce 500 units: Setups 20 Material moves 80 Machine hours 1,900 Packing orders 150 a. Calculate the cost per unit of activity for each activity cost pool for Merlot Company. Setup costs Materials handling costs $ $ 0 0 Packing orders 1,200 One product made by Merlot, metal casements, used the following activities during the period to produce 500 units: Setups Material moves Machine hours Packing orders 20 80 1,900 150 0 a. Calculate the cost per unit of activity for each activity cost pool for Merlot Company. Setup costs $ Materials handling costs $ 0 Machine operating costs $ 0 Packing costs $ 0 b. Calculate the manufacturing overhead cost per metal casement manufactured during the period. Round cost per unit to two decimal places, if needed. Manufacturing Overhead Cost per Metal Casement Setups 0 Material moves 0 Machine hours 0 Packing orders 0 Total manufacturing overhead $ 0 Casements produced 0 Cost per casement $ 0
