waterway problem 04 b-c

IS - Weygandt, Managerial Accounting, te Help System Announcements CALCULATOR PRINTER VERSION BACK NEXT Waterways Problem 04 - Direct Inbor or machine hours may not be the appropriate cost driver for over end in all areas of manufacturing due to the complexities of many manufacturing processes Many companies une activity-based costing (ABC) which uses multiple drivers (items that consume resources) rather than just one driver to apply overhead to their activities. With ABC, a company can use a cost driver that has a direct cause/effect relationship in its applied overhead costs. Waterways looked into ABC as a method of costing because of the variety of items it produces and the many different activities in which it is involved. The activities listed below area sample of possible cost pools for Waterways. Assembling Payroll Billing Plant supervision Digging trenches Product design Janitorial Purchasing materials Machine maintenance Selling Machine setups Testing Molding Welding Packaging Your answer is incorrect. Try again. Using the following information, determine the overhead rates and the actual cost assigned for each of the activity cost pools in a possible ABC system for Waterways. (Round answers to 2 decimal places, e.g. 12.25.) WATERWAYS CORPORATION SEE Activity Cost Pools Cost Drivers Irrigation Installation Labor cost Machining (all machine use) Machine hours Customer orders Number of orders Estimated Overhead $2,094,660 1,550,750 34,710 Expected Use of Cost Drivers per Actual Use of Activity Drivers 12,930 12,908 31,015,000 31,016,000 2 ,670 2,638 SES WATERWAYS CORPORATION Activity Cost Pools Irrigation installation Machining (all machine use) Customer orders Shipping Design Cost Driver Labor cost Machine hours Number of orders none (direct) Cost per design Number of sales calls Estimated Overhead $2,094,660 ,550,750 34,710 Expected Use of Cost Drivers per Actual Use of Activity Drivers 12,930 1 2,908 31,015,000 31,016,000 2,670 2,638 N/A traced directly 76 22,600 2 2,820 Z N N Selling OZU WATERWAYS CORPORATION Activity Based Activity Cost Pools Actual Actual Cost DS DO Assigned Elle | Irrigation installation LO Machining (all machine use) Olli Customer orders Design TT U 11 Selling LINK TO TEXT LINK TO TEXT