C-Cubed uses an activity-based costing system for its Fit-Right-Bike. C-Cubed's direct labor rate was $20/hr. The following information is available for the Fit-Right-Bike:Activity Cost PoolEstimated Total Overhead CostExpected Total ActivityActual Total Activity$10,000$20,000$10,000Custom Design Process200 custom designs250 designsSupporting Direct Labor100 hours200 hoursCustomer Service4 customers5 customersBikes-R-UsSelling Price Per Unit100 bikes sold$1,500$400Direct Materials Per BikeDirect Labor-Hours Per Bike30 hours100 designs25 hoursCustom DesignsSupporting Direct LaborCalculate the customer margin for Bikes-R-Us.Multiple Choice$41,500$11,500$7,500$37,500 C-Cubed uses standards to control its costs. The direct materials and direct labor standards for one Fit-Right-Bike, which is made out of chromoly steel, are given below:Price Standard$3.50 per inchQuantity StandardDirect Materials60 inchesDirect Labor3 hours$20 per hourDuring the month of September, C-Cubed planned on making 275 bikes, but it actually produced 300 bikes. C-Cubed incurred the following costs:A. 19,000 inches of chromoly steel were purchased at a cost of $3.25 per inch. C-Cubed used only 17,500 inches of chromoly steel in making the 275 bikes.B. Direct laborers worked 855 hours at an average rate of $22 per hour.Calculate the activity variance with respect to direct materials.Multiple Choice$87.50F$5.250U$87.50U$5.250F

Name: C-Cubed uses an activity-based costing system for its Fit-Right-Bike.
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Description: C-Cubed uses an activity-based costing system for its Fit-Right-Bike. C-Cubed's direct labor rate was $20/hr. The following information is available for the Fit-Right-Bike:Activity Cost PoolEstimated Total Overhead CostExpected Total ActivityActual

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C-Cubed uses an activity-based costing system for its Fit-Right-Bike. C-Cubed's direct labor rate was $20/hr. The following information is available for the Fit-Right-Bike: Activity Cost Pool Custom Design Process Supporting Direct Labor Customer Service Estimated Total Overhead Cost $10,000 $20,000 |$10,000 Expected Total Activity 200 custom designs 100 hours Actual Total Activity 250 designs 200 hours 5 customers 4 customers Bikes-R-Us Selling Price Per Unit Direct Materials Per Bike Direct Labor-Hours Per Bike Custom Designs Supporting Direct Labor Calculate the customer margin for Bikes-R-Us. 100 bikes sold $1,500 $400 30 hours 100 designs 25 hours Multiple Choice $41,500 $11,500 $7,500 $37,500

C-Cubed uses an activity-based costing system for its Fit-Right-Bike. C-Cubed's direct labor rate was $20/hr. The following information is available for the Fit-Right-Bike: Activity Cost Pool Custom Design Process Supporting Direct Labor Customer Service Estimated Total Overhead Cost $10,000 $20,000 |$10,000 Expected Total Activity 200 custom designs 100 hours Actual Total Activity 250 designs 200 hours 5 customers 4 customers Bikes-R-Us Selling Price Per Unit Direct Materials Per Bike Direct Labor-Hours Per Bike Custom Designs Supporting Direct Labor Calculate the customer margin for Bikes-R-Us. 100 bikes sold $1,500 $400 30 hours 100 designs 25 hours Multiple Choice $41,500 $11,500 $7,500 $37,500

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter4: Activity-based Costing

Section: Chapter Questions

Problem 27E: Plata Company has identified the following overhead activities, costs, and activity drivers for the...

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Archie Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products. Activity Cost Pools Activity Rate Setting up batches $ 81.76 per batch Processing customer orders $ 62.40 per customer order Assembling products $ 1.76 per assembly hour Last year, Product X26X required 33 batches, 1 customer order, and 368 assembly hours. Required: How much overhead cost would be assigned to Product X26X using the company's activity-based costing system? (Round your intermediate calculations and final answer to 2 decimal places.) Total overhead cost
C-Cubed uses an activity-based costing system for its Fit-Right-Bike. C-Cubed's direct labor rate was $20/hr. The following information is available for the Fit-Right-Bike: Activity Cost Pool Estimated Total Overhead Cost Expected Total Activity Actual Total Activity $10,000 $20,000 $10,000 Custom Design Process 200 custom designs 250 designs Supporting Direct Labor 100 hours 200 hours Customer Service 4 customers 5 customers Bikes-R-Us Selling Price Per Unit 100 bikes sold $1,500 $400 Direct Materials Per Bike Direct Labor-Hours Per Bike 30 hours 100 designs 25 hours Custom Designs Supporting Direct Labor Calculate the customer margin for Bikes-R-Us. Multiple Choice $41,500 $11,500 $7,500 $37,500
Mouret Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products. Activity Cost Pools Activity Rate Setting up batches $ 75.51 per batch Processing customer orders $ 56.15 per customer order Assembling products $ 1.43 per assembly hour Last year, Product N79A required 34 batches, 1 customer orders, and 369 assembly hours. Required: How much overhead cost would be assigned to Product N79A using the company's activity-based costing system? (Do not round your intermediate calculations. Round your final answer to two decimal places.)
Move Corporation manufactures two models of motorized go-carts, a standard and a deluxe model. The following activity and cost information has been compiled: Number of Number of Number of Product Setups Components Direct Labor Hours Standard 15 10 750 Deluxe 35 15 500 Overhead costs $16,500 $23,500 Number of setups and number of components are identified as activity-cost drivers for overhead. Assuming an activity-based costing system is used, what is the total amount of overhead cost assigned to the standard model?
Tidwell Industries has the following overhead costs and cost drivers. Direct labor hours are estimated at 100000 for the year. Activity Cost Pool Cost Driver Est. Overhead Cost Driver Activity Ordering and Receiving Orders $ 85000 500 orders Machine Setup Setups 265500 450 setups Machining Machine hours 1412500 125000 MH Assembly Parts 1130000 1000000 parts Inspection Inspections 265000 500 inspections If overhead is applied using activity-based costing, the overhead application rate for ordering and receiving is $ 0.09 per part. $ 170 per order. $ 6316 per order. $ 0.85 per direct labor hour.
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Forner, Inc., manufactures and sells two products: Product Z1 and Product Z8. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity Estimated Expected Activity Activity Overhead Activity Cost Pools Labor-related Measures Cost Product Z1 Product Z8 Total DLHS $112,190 40,440 609,770 600 2,000 Machine setups Оrder size 2,600 1,200 6, 200 setups 500 700 MHs 3,000 3,200 $762,400 The activity rate for the Machine Setups activity cost pool under activity-based costing is closest to: Multiple Cholce $203.26 per setup $190.55 per setup $122.97 per setup 92 F AQI 61 nere to search DELL
Tidwell Industries has the following overhead costs and cost drivers. Direct labor hours are estimated at 100000 for the year. Activity Cost Pool Cost Driver Est. Overhead Cost Driver Activity Ordering and Receiving Orders 145000 500 orders Machine Setup Setup 319500 450 setups Machining Machine hours 1575000 125000 MH Assembly Parts 1250000 1000000 parts Inspection Inspections 325000 500 inspections If overhead is applied using activity-based-costing, the overhead application rate for ordering and receiving is?