Question 5 1 pts 4A Portfolio Photography uses activity based casting to allocate overhead to individual clients (jobs). Portfolio Photography is working on three weddings during the current month (May), and total overhead is divided among four separate indirect cost pools: camera overhead (leases and maintenance on cameras), photo printing overhead (leases and maintenance on photo printers), computer-related overhead (leases/repairs on computers and subscriptions to commercial photo editing software), and other overhead costs (rent, insurance, etc.). The annual budgeted indirect cost pools and driver levels are provided in the table below. Estimated Activity Estimated Annual Quantity of Cost Driver Annual Cost Cost Driver Camera overhead $45,000 photographer-days 900 Photo printing overhead $15,000 number of photos printed 375,000 Computer-related overhead $80.000 photo processessing hours 8,000 Other Overhead Costs $63.000 photos taken 315.000 The following information about the wedding clients was given for May Garcia Wedding Smith Wedding Feng Wedding Beginning Balance (May 1 st) $13,000 $ $4,000 $0 Direct Labor $1,200 $2,900 $3,000 Direct Materials 5850 $1,000 $370 photographer-days 18 14 30 number of photos printed 600 1.000 800 20 photo processessing hours 100 photos taken 2,200 3.000 3,200 By the end of May, Portfolio Photography completed work on the Garcia and Smith weddings. The Garcias have already picked up their photos and paid, but the Smiths are planning to pick up their photos and pay later in June. Portfolio Photography charges clients a 15% markup over total costs. Assume that Portfolio Photography is still working on the Feng at the end of May and that only the three above weddings were worked on during May. A. Calculate the amount of camera OH allocated per "photographer- day" in the ABC system. D Question 6 1 pts 40 Use the information in 4A to solve B Estimate the photo printing overhead costs allocated during May Question 7 1 pts 4C Use the information in 4A to solve: . C.Estimate the total overhead costs allocated to the Smith wedding cluring May Question & 1 pts 40 Use the information in 4 lo solve: D. Calculate how much Portfolio Photography charged for the Garcia wedding Question 9 1 pts 4- Use the information in 4 A to solve: E. How much in total was transferred from Work in Process to Finished Goods in May? D Question 10 1 pts 45 Use the information in 4A to solve F. Calculate the camera overhead allocated to the Feng wedding in May Question 11 1 pts 4G Use the information in 4 lo solve. G. Assume that actual overhead costs for Mey totaled $6.000. Was overhead over-applied or under-applied for the month? By how much? BIVA.A-TEX HTML ET EE VX TUT 4Hii. Use the information in 4A to solve: H. Your boss, the Portfolio Photography CFO, thinks that the current ABC job costing system is a hassle. She is curious as to how things would be different if the firm used a simpler plantwide cost allocation system. She instructs you to calculate the total overhead that would be applied to the Garcia wedding in May under a plantwide OH allocation system (using photos taken as the cost allocation base). ii. Write a short message to the CFO explaining what factors are responsible for the overcosting or undercosting you identify in part (i.) above (comparing ABC to plantwide OH cost allocation for the Garcia wedding). Use 2 sentences or less. HTML Editora BI U A Ix E 4Hi Use the information in 4A to solve: H. Your boss, the Portfolio Photography CFO, thinks that the current ABC job costing system is a hassle. She is curious as to how things would be different if the firm used a simpler plantwide cost allocation system. She instructs you to calculate the total overhead that would be applied to the Garcia wedding in May under a plantwide OH allocation system (using photos taken as the cost allocation base). i. Relative to the ABC system, would the plantwide system overcost or undercost the Garcia wedding OH from May? By how much? HTML Editora B I A x? X Tx E Va C H4 TT 12pt
