The following activities occur at Greenwich Corporation, a company that manufactures a variety of products.

Required:

Q1

-Classify each of the activities below as either a unit-level, batch-level, product-level, or organization-sustaining activity.

a- receive raw materials from suppliers ----------

b-manage parts inventories -------------------

c-Do rough milling work on the products---------------------

d-Interview and process new employees in the personell department ----------------------

e- Design new products -----------------------

f-perform periodic preventive maintenance on general-use equipment----------------------------

g-use the general factory building -----------------------

h- issue purchase orders for a job

Green Thumb Gardening is a small gardening service that uses activity-based costing to estimate costs for pricing and other purposes. The proprietor of the company believes that costs are driven primarily by the size of customer lawns, the size of customer garden beds, the distance to travel to customers, and the number of customers. In addition, the costs of maintaining garden beds depends on whether the beds are low maintenance beds (mainly ordinary trees and shrubs) or high maintenance beds (mainly flowers and exotic plants). Accordingly, the company uses the five activity cost pools listed below:

Activity Cost Pool	Activity Measure
Caring for lawn	Square feet of lawn
Caring for garden bedslow maintenance	Square feet of low maintenance beds
Caring for garden bedshigh maintenance	Square feet of high maintenance beds
Travel to jobs	Miles
Customer billing and service	Number of customers

The company has already completed its first stage allocations of costs and has summarized its annual costs and activity as follows:

Activity Cost Pool	Estimated Overhead Cost	Expected Activity
Caring for lawn	$	77,800	165,000	square feet of lawn
Caring for garden bedslow maintenance	$	30,400	29,000	square feet of low maintenance beds
Caring for garden bedshigh maintenance	$	63,480	23,000	square feet of high maintenance beds
Travel to jobs	$	3,400	20,000	miles
Customer billing and service	$	7,100	32	customers

Q 2 - Compute the activity rate for each of the activity cost pools.(Round your answers to 2 decimal places.) Pl make a table

Activity cost pool Activity rate

Caring for lawn Per square ft of lawn

Caring for garden beds- low maintenance Per square ft of low maintenance beds

Caring for garden beds- high maintenance Per square ft of high maintenance beds

Travel to jobs per mile

Customer billing and service per customer

Q3

Klumper Corporation is a diversified manufacturer of industrial goods. The companys activity-based costing system contains the following six activity cost pools and activity rates:

Activity Cost Pool	Activity Rates
Supporting direct labor	$	11.00	per direct labor-hour
Machine processing	$	4.00	per machine-hour
Machine setups	$	40.00	per setup
Production orders	$	160.00	per order
Shipments	$	115.00	per shipment
Product sustaining		775.00	per product

Activity data have been supplied for the following two products:

	Total Expected Activity
	K425	M67
Number of units produced per year	200	2,000
Direct labor-hours	1,150	50
Machine-hours	2,400	40
Machine setups	17	1
Production orders	17	1
Shipments	34	1
Product sustaining	1	1

Q 3

Determine the total overhead cost that would be assigned to each of the products listed above in the activity-based costing system. Pl make a table

Activity cost pool K425 M67

Supporting Direct labor

Machine processing

Machine setups

Production orders

Shipments

product sustaining

Total overhead cost

Q 4

Smoky Mountain Corporation makes two types of hiking bootsXtreme and the Pathfinder. Data concerning these two product lines appear below:

	Xtreme	Pathfinder
Selling price per unit	$	116.00			$	80.00
Direct materials per unit	$	64.00			$	52.00
Direct labor per unit	$	12.00			$	8.00
Direct labor-hours per unit		1.5	DLHs			1.0	DLHs
Estimated annual production and sales		29,000	units			76,000	units

The company has a traditional costing system in which manufacturing overhead is applied to units based on direct labor-hours. Data concerning manufacturing overhead and direct labor-hours for the upcoming year appear below:

Estimated total manufacturing overhead	$	1,912,000
Estimated total direct labor-hours		119,500		DLHs

Q 4 Pl answer these 3 questions

1. Compute the product margins for the Xtreme and the Pathfinder products under the companys traditional costing system.(Do not round your intermediate calculations.) Pl make table

Xtreme Pathfinder Total

product margin

2. The company is considering replacing its traditional costing system with an activity-based costing system that would assign its manufacturing overhead to the following four activity cost pools (the Other cost pool includes organization-sustaining costs and idle capacity costs): .Pl make a table

	Estimated	Activity
Activities and Activity Measures	Overhead Cost			Xtreme			Pathfinder			Total
Supporting direct labor (direct labor-hours)	$	693,100				43,500			76,000			119,500
Batch setups (setups)		539,000				290			200			490
Product sustaining (number of products)		640,000				1			1			2
Other		39,900				NA			NA			NA
Total manufacturing overhead cost	$	1,912,000

Compute the product margins for the Xtreme and the Pathfinder products under the activity-based costing system.(Negative product margins should be indicated with a minus sign. Round your intermediate calculations to 2 decimal places.) Pl make a table

Xtreme Pathfinder Total

product margin

3. Prepare a quantitative comparison of the traditional and activity-based cost assignments.(Do not round intermediate calculations. Round your "Percentage" answer to 1 decimal place. (i.e. .1234 should be entered as 12.3)) Pl make a table

Extreme Pathfinder Total

% of %of

Amount Total amount Amount Total amount Amount

Total cost system

% %

% %

% %

Total cost Assigned to products ------------------------ ----- --------------------------- ------ ---------------------------------