Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Spigelmyer Enterprises makes a variety of products that it sells to other businesses. The company's activity-based costing system has four activity cost pools for assigning

image text in transcribed
Spigelmyer Enterprises makes a variety of products that it sells to other businesses. The company's activity-based costing system has four activity cost pools for assigning costs to products and customers. Details concerning that ABC system are listed below: Activity Cost Pool Activity Measure Supporting assembly Direct labor-hours (DLHS) Processing batches Number of batches Processing orders Number of orders Serving customers Number of customers Activity Rate $5.50 per DLH $176.30 per batch $85.20 per order $1.039.00 per customer The cost of serving customers. $1,039.00 per customer, is the cost of serving a customer for one year. Oelschlaeger Corporation buys only one of the company's products which Spigelmyer Enterprises sells for $18.05 per unit. Last year Oelschlaeger Corporation ordered a total of 1,100 units of this product in 2 orders. To fill the orders, 8 batches were required. The direct materials cost is $6.20 per unit and the direct labor cost is $5.70 per unit Each unit requires 0.30 DLHS. Required: a. According to the ABC system, what is the cost of the Supporting assembly activity for Oclschlaeger Corporation for the year? b. According to the ABC system, what is the cost of the "Processing batches" activity for Oelschlaeger Corporation for the year? c. According to the ABC system, what is the cost of the "Processing orders" activity for Oelschlaeger Corporation for the year? d. According to the ABC system, what is the cost of the "Servicing customers' activity for Oelschlaeger Corporation for the year? e. What is the customer margin on sales to Oelschlaeger Corporation for the year

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

The Employee Motivation Audit

Authors: Jane Weightman

1st Edition

0955970709, 978-0955970702

More Books

Students also viewed these Accounting questions

Question

5. Structure your speech to make it easy to listen to

Answered: 1 week ago

Question

1. Describe the goals of informative speaking

Answered: 1 week ago