Activity data have been supplied for the following two products:Number of units produced per year.Direct labor-hoursMachine-hoursMachine setupsProduction ordersShipmentsProduct sustainingActivity Cost PoolSupporting direct laborMachine processingMachine setupsProduction ordersShipmentsProduct sustainingTotal overhead costK425Total Expected ActivityK425M672,000M672009252,6001313263Required:How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system?wwww384030 Exercise 7-4 (Algo) Second-Stage Allocation [LO7-4]Klumper Corporation is a diversified manufacturer of industrial goods. The company's activity-based costing system contains thefollowing six activity cost pools and activity rates:Activity Cost PoolSupporting direct laborMachine processingMachine setupsProduction orders.ShipmentsProduct sustainingNumber of units produced per yearDirect labor-hoursMachine-hoursActivity Rates.$10 per direct labor-hour$3 per machine-hour$ 125 per shipment$ 775 per productActivity data have been supplied for the following two products:Machine setupsProduction ordersShipmentsProduct sustaining$ 35 per setup$160 per order.Total Expected ActivityK425M672009252,6001313.263,0004030333Required:How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system?

Name: Activity data have been supplied for the following two products:Numbe
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Description: Activity data have been supplied for the following two products:Number of units produced per year.Direct labor-hoursMachine-hoursMachine setupsProduction ordersShipmentsProduct sustainingActivity Cost PoolSupporting direct laborMachine processingMac

The overhead costs are the indirect costs incurred for the production. The overhead is applied to…

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Accounting

Activity data have been supplied for the following two products: Number of units produced per year Direct labor-hours Machine-hours Machine setups Production orders Shipments Product sustaining Activity Cost Pool Supporting direct labor K425 Total Expected Activity K425 M67 2,000 M67 200 925 2,600 13 13 26 Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system? 3 40 30 3 3 3

Activity data have been supplied for the following two products: Number of units produced per year Direct labor-hours Machine-hours Machine setups Production orders Shipments Product sustaining Activity Cost Pool Supporting direct labor K425 Total Expected Activity K425 M67 2,000 M67 200 925 2,600 13 13 26 Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system? 3 40 30 3 3 3

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter11: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 11.2E: Identify cost graphs The following cost graphs illustrate various types of cost behavior: For each...

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Exercise 7-4 (Algo) Second-Stage Allocation [LO7-4] Klumper Corporation is a diversified manufacturer of industrial goods. The company's activity-based costing system contains the following six activity cost pools and activity rates: Activity Cost Pool Supporting direct labor Machine processing Machine setups Production orders. Shipments Product sustaining Activity data have been supplied for the following two products: Number of units produced per year Direct labor-hours Machine-hours Machine setups Production orders Shipments Product sustaining Activity Rate $10 per direct labor-hour $3 per machine-hour $50 per setup $ 170 per order $115 per shipment $850 per product Activity Cost Pool Supporting direct labor Machine processing Machine setups Production orders Shipments Product sustaining Total overhead cost K425 Total Expected Activity K425 M67 2,000 200 1,075 2,600 19 19 38 Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing…
Exercise 7-4 (Algo) Second-Stage Allocation [LO7-4] Klumper Corporation is a diversified manufacturer of industrial goods. The company's activity-based costing system contains the following six activity cost pools and activity rates: Activity Cost Pool Supporting direct labor Machine processing Machine setups Activity Rates $ 11 per direct labor -hour 4 per machine-hour 50 per setup $ 150 per order $ 125 per shipment $ 850 per product Production orders Shipments Product sustaining Activity data have been supplied for the following two products: Total Expected Activity K425 Number of units produced per year Direct labor-hours Machine-hours Machine setups 200 2,000 975 40 3,000 30 13 2 Production orders Shipments Product sustaining 13 2 26 2 2 Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system? Activity Cost Pool K425 M67 Supporting direct labor Machine processing Machine setups Production orders Shipments Product sustaining…
Exercise 7-4 (Algo) Second-Stage Allocation [LO7-4] Klumper Corporation is a diversified manufacturer of industrial goods. The company’s activity-based costing system contains the following six activity cost pools and activity rates: Activity Cost Pool Activity Rates Supporting direct labor $ 11 per direct labor-hour Machine processing $ 3 per machine-hour Machine setups $ 40 per setup Production orders $ 160 per order Shipments $ 125 per shipment Product sustaining $ 900 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 11 3 Production orders 11 3 Shipments 22 3 Product sustaining 3 3 Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system?
Exercise 7-11 (Algo) Second-Stage Allocation and Margin Calculations [LO7-4, LO7-5] Foam Products, Incorporated, makes foam seat cushions for the automotive and aerospace Industries. The company's activity-based costing system has four activity cost pools, which are listed below along with their activity measures and activity rates: Activity Cost Pool Supporting direct labor Batch processing Order processing Customer service Activity Measure Number of direct labor-hours Number of batches Number of orders Number of customers The company Just completed a single order from Interstate Trucking for 1,700 custom seat cushions. The order was produced in three batches. Each seat cushion required 0.6 direct labor-hour. The selling price was $141.80 per unit, the direct materials cost was $107 per unit, and the direct labor cost was $13.80 per unit. This was Interstate Trucking's only order during the year. Required: Calculate the customer margin for Interstate Trucking. Costs: Interstate…
Exercise 7-11 (Algo) Second-Stage Allocation and Margin Calculations [LO7-4, LO7-5] Foam Products, Incorporated, makes foam seat cushions for the automotive and aerospace industries. The company's activity-based costing system has four activity cost pools, which are listed below along with their activity measures and activity rates: Activity Cost Pool Supporting direct labor Batch processing Order processing Customer service Activity Measure Number of direct labor-hours Number of batches Number of orders Number of customers Activity Rate $9 per direct labor-hour $95 per batch $ 279 per order $ 2,616 per customer The company just completed a single order from Interstate Trucking for 2.400 custom seat cushions. The order was produced in four batches. Each seat cushion required 0.6 direct labor-hours. The selling price was $142.00 per unit, the direct materials cost was $108 per unit, and the direct labor cost was $14.00 per unit. This was Interstate Trucking's only order during the year.…
Exercise 7-15 (Static) Comprehenslve Activity-Based Costing Exercise [LO7-2, LO7-3, LO7-4, LO7-5] Advanced Products Corporation has supplied the following data from its activity-based costing system: Overhead Costs Wages and salaries Other overhead costs $ 300,000 100,000 $ 400,000 Total overhead costs Total Activity for the Activity Cost Pool Supporting direct labor Order processing Customer support Other Activity Measure Number of direct labor-hours Number of customer orders Number of customers This is an organization- sustaining activity Year 20, 900 DLHS 400 orders 200 customers Not applicable Distribution of Resource Consumption Across Activities Supporting Direct Labor 40% Customer Support Orden Processing Other Total Wages and salaries Other overhead costs 30% 20% 10% 100% 100% 30% 10% 20% 40% During the year, Advanced Products completed one order for a new customer, Shenzhen Enterprises. This customer did not order any other products during the year. Data concerning that order…
ces Required information [The following information applies to the questions displayed below.] Mc Graw Hill 1 Kubin Company's relevant range of production is 18,000 to 22,000 units. When it produces and sells 20,000 units, its average costs per unit are as follows: A option 1 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Required: 1. What is the incremental manufacturing cost incurred if the company increases production from 20,000 to 20,001 units? 2. What is the incremental cost incurred if the company increases production and sales from 20,000 to 20,001 units? 3. Assume that Kubin Company produced 20,000 units and expects to sell 19,800 of them. If a new customer unexpectedly emerges and expresses interest in buying the 200 extra units that have been produced by the company and that would otherwise remain unsold, what is the incremental…
es Exercise 6-9 (Algo) Variable and Absorption Costing Unit Product Costs and Income Statements [LO6-1, LO6-2, LO6-3] Walsh Company manufactures and sells one product. The following information pertains to each of the company's first two years of operations: Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expenses $26 $ 14 $5 $4 2. Assume the company uses absorption costing: a. Compute the unit product cost for Year 1 and Year 2. $ 240,000 $ 100,000 During its first year of operations, Walsh produced 50,000 units and sold 40,000 units. During its second year of operations, it produced 40,000 units and sold 50,000 units. The selling price of the company's product is $54 per unit. Required: 1. Assume the company uses variable costing: a. Compute the unit product cost for Year 1 and Year 2. b. Prepare an income…
Question No.5 Ivory Corporation manufactures two products (A and B). The overhead costs have been divided into four cost pools that use the following activity drivers: Product Number of Orders Number of Set-ups Number of Labor Transactions Labor Hours A B Cost per pool 20 5 Rs.15,000 35 70 Rs.8,400 1,000 1,500 Rs.120,000 75 125 Rs.40,000 Required: Compute the allocation rates for each of the activity drivers listed. Allocate the overhead cost to Product A and B using activity-based-costing. Compute the overhead rate using machine hours under the functional based costing system. Allocate the overhead cost to Product A and B using the functional-based costing system overhead rate calculated in part C.
Second-Stage Allocation Klumper Corporation is a diversified manufacturer of industrial goods. The company’s activity-based costing system contains the following six activity cost pools and activity rates: Activity data have been supplied for the following two products: Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system?
Cost Classifications (Algo) [The following information applies to the questions displayed below.] Kubin Company's relevant range of production is 28,000 to 31,500 units. When it produces and sells 29,750 units, its average costs per unit are as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Average Cost per Unit $ 8.80 $5.80 $ 3.30 $ 6.80 $5.30 $.4.30 $ 2.80 $ 2.30 Exercise 1-8 (Algo) Product Costs and Period Costs; Variable and Fixed Costs [LO1-3, LO1-4] 1. Total amount of product cost 2. Total amount of period cost incurred 3. Total amount of product cost 4. Total amount of period cost Required: 1. For financial accounting purposes, what is the total amount of product costs incurred to make 29,750 units? 2. For financial accounting purposes, what is the total amount of period costs incurred to sell 29,750 units? 3. For financial…
Exercise 6-9 (Algo) Variable and Absorption Costing Unit Product Costs and Income Statements [LO6-1, LO6-2, LO6-3] Walsh Company manufactures and sells one product. The following information pertains to each of the company's first two years of operations: Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: $ 23 $ 12 $ 4 $ 3 Fixed manufacturing overhead Fixed selling and administrative expenses $ 240,000 $ 90,000 During its first year of operations, Walsh produced 50,000 units and sold 40,000 units. During its second year of operations, it produced 40,000 units and sold 50,000 units. The selling price of the company's product is $60 per unit. Required: 1. Assume the company uses variable costing: a. Compute the unit product cost for Year 1 and Year 2. b. Prepare an income statement for Year 1 and Year 2. 2. Assume the company uses absorption costing: a. Compute the unit product…