Question 5 of 6 < > - /1 E Current Attempt in Progress Kragan Clothing Company...
Fantastic news! We've Found the answer you've been seeking!
Question:
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/06/665be03da6883_213665be03d2f00a.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/06/665be03e60b52_213665be03de2703.jpg)
Transcribed Image Text:
Question 5 of 6 < > - /1 E Current Attempt in Progress Kragan Clothing Company manufactures its own designed and labeled athletic wear and sells its products through catalog sales and retail outlets. While Kragan has for years used activity-based costing in its manufacturing activities, it has always used traditional costing in assigning its selling costs to its product lines. Selling costs have traditionally been assigned to Kragan's product lines at a rate of 70% of direct materials costs. Its direct materials costs for the month of March for Kragan's "high-intensity" line of athletic wear are $400,000. The company has decided to extend activity-based costing to its selling costs. Data relating to the "high-intensity" line of products for the month of March are as follows. Activity Cost Pools Cost Drivers Overhead Rate Number of Cost Drivers Used per Activity Sales commissions Dollar sales $0.05 per dollar sales $900,000 Advertising-TV Minutes $300 per minute 250 Advertising-Internet Column inches $10 per column inch 2,000 Catalogs Cost of catalog sales Catalogs mailed Catalog orders $2.50 per catalog 60,000 $1 per catalog order 9,000 Credit and collection Dollar sales $0.03 per dollar sales $900,000 (a) Question 5 of 6 < > - /1 E Current Attempt in Progress Kragan Clothing Company manufactures its own designed and labeled athletic wear and sells its products through catalog sales and retail outlets. While Kragan has for years used activity-based costing in its manufacturing activities, it has always used traditional costing in assigning its selling costs to its product lines. Selling costs have traditionally been assigned to Kragan's product lines at a rate of 70% of direct materials costs. Its direct materials costs for the month of March for Kragan's "high-intensity" line of athletic wear are $400,000. The company has decided to extend activity-based costing to its selling costs. Data relating to the "high-intensity" line of products for the month of March are as follows. Activity Cost Pools Cost Drivers Overhead Rate Number of Cost Drivers Used per Activity Sales commissions Dollar sales $0.05 per dollar sales $900,000 Advertising-TV Minutes $300 per minute 250 Advertising-Internet Column inches $10 per column inch 2,000 Catalogs Cost of catalog sales Catalogs mailed Catalog orders $2.50 per catalog 60,000 $1 per catalog order 9,000 Credit and collection Dollar sales $0.03 per dollar sales $900,000 (a)
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
Purchase Decisions Tom Blackman works in the accounting department of one of the large retail stores in town and has just completed an evaluation of microcomputers to decide which model the store...
-
Peggy Williams helped eighty-seven-year-old Melvin Kaufman care for his wife and Williamss great aunt, Elsie, for several years before Elsies death. Melvin then asked Williams to take care of him the...
-
Everyone Deserves to Smile mobile dentist office budgeted for 4,350 patient visits a year. Everyone Deserves to Smile actually saw 4,445 patients during the year and they have provided the...
-
use a pre-trained image classifier to identify dog breeds udacity Correctly identify which pet images are of dogs (even if the breed is misclassified) and which pet images aren't of dogs. Correctly...
-
(10 points) What is the time complexity of the following code in terms of big O? for (i=0; i
-
Write a 150 words for your initial response. Your first response is due by midnight of the second day of the unit. Provide links to the resources you used to conduct your research. You must respond...
-
Many job design experts who have studied the changing nature of work say that stress can de reduced through the redesigning of jobs in the workplace'. Part A Discuss the three (3) job design tools as...
-
2. What are the two first order scattering peaks due to the solvent that are observed in a fluorescence EEM? At what relative wavelengths do they occur? What are their relative intensities (which is...
-
Explain the five (5) conditions which are required to issue the standard unqualified audit
-
dividend = 1.25sells stock for= 27.50required return= 13.75%what is the equilibrum expected growth rate? 2 answers
-
Computing equivalent production. The Oakland Manufac- turing Company, which has four producing departments, uses the process cost accounting system. Production data for the first month's operations...
-
What steps are involved in the matching process? Give two examples of cases where the matching concept should be applied.
-
What is the periodicity concept? Why is it important for companies to provide periodic information?
![Mobile App Logo](https://dsd5zvtm8ll6.cloudfront.net/includes/images/mobile/finalLogo.png)
Study smarter with the SolutionInn App