Deemer Corporation has an activity-based costing system withthree activity cost pools--Processing, Supervising, and Other. Inthe first stage allocations, costs in the two overhead accounts,equipment expense and indirect labor, are allocated to the threeactivity cost pools based on resource consumption. Data used in thefirst stage allocations follow:
Overhead costs: Equipment expense $ 107,000 Indirect labor $ 12,300
Distribution of Resource Consumption Across Activity CostPools:
Activity Cost Pools Processing Supervising Other Equipment expense 0.30 0.50 0.20 Indirect labor 0.30 0.40 0.30
Processing costs are assigned to products using machine-hours(MHs) and Supervising costs are assigned to products using thenumber of batches. The costs in the Other activity cost pool arenot assigned to products. Activity data for the company's twoproducts follow:
Activity:
MHs(Processing) Batches(Supervising) Product F6 13,600 780 Product X0 1,670 590 Total 15,270 1,370
What is the overhead cost assigned to Product X0 underactivity-based costing?
Multiple Choice
$3,907.80
$29,065.00
$25,157.60
$39,043.00
Deemer Corporation has an activity-based costing system withthree activity cost pools--Processing, Supervising, and Other. Inthe first stage allocations, costs in the two overhead accounts,equipment expense and indirect labor, are allocated to the threeactivity cost pools based on resource consumption. Data used in thefirst stage allocations follow:
| Overhead costs: | |||||||
| Equipment expense | $ | 107,000 | |||||
| Indirect labor | $ | 12,300 | |||||
Distribution of Resource Consumption Across Activity CostPools:
| Activity Cost Pools | |||||
| Processing | Supervising | Other | |||
| Equipment expense | 0.30 | 0.50 | 0.20 | ||
| Indirect labor | 0.30 | 0.40 | 0.30 | ||
Processing costs are assigned to products using machine-hours(MHs) and Supervising costs are assigned to products using thenumber of batches. The costs in the Other activity cost pool arenot assigned to products. Activity data for the company's twoproducts follow:
Activity:
| MHs(Processing) | Batches(Supervising) | |
| Product F6 | 13,600 | 780 |
| Product X0 | 1,670 | 590 |
| Total | 15,270 | 1,370 |
What is the overhead cost assigned to Product X0 underactivity-based costing?
Multiple Choice
$3,907.80
$29,065.00
$25,157.60
$39,043.00
Related questions
#6
Younan Corporation manufactures two products: Product E47F andProduct D02M. The company is considering implementing anactivity-based costing (ABC) system that allocates itsmanufacturing overhead to four cost pools. The following additionalinformation is available for the company as a whole and forProducts E47F and D02M.
| Activity CostPool | ActivityMeasure | Total Cost | Total Activity | ||
| Machining | Machine-hours | $ | 165,000 | 11,000 | MHs |
| Machine setups | Number of setups | $ | 150,000 | 250 | setups |
| Product design | Number of products | $ | 70,000 | 2 | products |
| Order size | Direct labor-hours | $ | 310,000 | 10,000 | DLHs |
| ActivityMeasure | ProductE47F | ProductD02M |
| Machine-hours | 5,000 | 6,000 |
| Number of setups | 200 | 50 |
| Number of products | 1 | 1 |
| Direct labor-hours | 4,000 | 6,000 |
Using the ABC system, the percentage of the total overhead costthat is assigned to Product D02M is closest to:
rev: 03_17_2018_QC_CS-119201
22.30%
49.06%
26.76%
50.00%
#7
Tomasini Corporation has provided the following data from itsactivity-based costing accounting system:
| Supervisory wages | $ | 660,000 |
| Factory supplies | $ | 280,000 |
Distribution of Resource Consumption across Activity CostPools:
| Activity Cost Pools | BatchProcessing | Unit Processing | Other | Total | |
| Supervisory wages | 20% | 70% | 10% | 100% | |
| Factory supplies | 45% | 35% | 20% | 100% | |
The "Other" activity cost pool consists of the costs of idlecapacity and organization-sustaining costs that are not assigned toproducts.
How much supervisory wages and factory supplies cost would NOTbe assigned to products using the activity-based costingsystem?
Garrison 16e Rechecks 2018-07-24
$280,000
$660,000
$122,000
$0
#9
Addleman Corporation has an activity-based costing system withthree activity cost pools--Processing, Supervising, and Other. Inthe first stage allocations, costs in the two overhead accounts,equipment expense and indirect labor, are allocated to the threeactivity cost pools based on resource consumption. Data used in thefirst stage allocations follow:
| Overhead costs: | |||||||
| Equipment expense | $ | 73,000 | |||||
| Indirect labor | $ | 1,000 | |||||
Distribution of Resource Consumption Across Activity CostPools:
| Activity Cost Pools | |||||
| Processing | Supervising | Other | |||
| Equipment expense | 0.20 | 0.10 | 0.70 | ||
| Indirect labor | 0.20 | 0.20 | 0.60 | ||
Processing costs are assigned to products using machine-hours(MHs) and Supervising costs are assigned to products using thenumber of batches. The costs in the Other activity cost pool arenot assigned to products. Activity data for the company's twoproducts follow:
Activity:
| MHs(Processing) | Batches(Supervising) | |
| Product W3 | 7,600 | 100 |
| Product H3 | 2,400 | 900 |
| Total | 10,000 | 1,000 |
Finally, the costs of Processing and Supervising are combinedwith the following sales and direct cost data to determine productmargins.
Sales and Direct Cost Data:
| Product W3 | Product H3 | |||||||||
| Sales (total) | $ | 159,500 | $ | 154,100 | ||||||
| Direct materials (total) | $ | 66,300 | $ | 55,300 | ||||||
| Direct labor (total) | $ | 77,800 | $ | 84,100 | ||||||
The activity rate for the Supervising activity cost pool underactivity-based costing is closest to:
Garrison 16e Rechecks 2018-07-24
$7.50 per batch
$74.00 per batch
$1.11 per batch
$1.00 per batch
43.
Consider the following production and cost data for twoproducts, L and C: |
| Product L | Product C | |
| Contribution marginper unit | $35 | $40 |
| Machine-hours neededper unit | 7 hours | 5 hours |
The company can only perform 14,700 machine hours each period,due to limited skilled labor and there is unlimited demand for eachproduct. What is the largest possible total contribution marginthat can be realized each period? |
rev: 01_23_2015_QC_CS-5061
a. $103,340
b. $117,600
c. $132,300
d. $102,900
45.
Ollivier Corporation has an activity-based costing system withthree activity cost pools-Processing, Supervising, and Other. Inthe first stage allocations, costs in the two overhead accounts,equipment expense and indirect labor, are allocated to the threeactivity cost pools based on resource consumption. Data used in thefirst stage allocations follow: |
| Overhead costs: | |
| Equipmentexpense | $73,000 |
| Indirect labor | $6,900 |
| Distribution of Resource Consumption Across Activity Cost Pools: | |||
Activity Cost Pools | |||
| Processing | Supervising | Other | |
| Equipmentexpense | 0.40 | 0.40 | 0.20 |
| Indirect labor | 0.40 | 0.50 | 0.10 |
Processing costs are assigned to products using machine-hours(MHs) and Supervising costs are assigned to products using thenumber of batches. The costs in the Other activity cost pool arenot assigned to products. Activity data for the company's twoproducts follow: |
| Activity: | ||
| MHs(Processing) | Batches(Supervising) | |
| Product C4 | 10,900 | 920 |
| Product L7 | 1,780 | 1,430 |
| Total | 12,680 | 2,350 |
What is the overhead cost assigned to Product L7 underactivity-based costing? (Round your intermediatecalculations to 2 decimal places and your final answer to nearestwhole dollar.) |
a. $24,348
b. $4,486
c. $34,326
d. $19,863
46.
HarrisCorporation produces a single product. Last year, Harrismanufactured 26,030 units and sold 20,700 units. Production costsfor the year were as follows: |
| Fixed manufacturingoverhead | $494,570 |
| Variablemanufacturing overhead | $210,843 |
| Direct labor | $143,165 |
| Directmaterials | $192,622 |
Sales were $983,250, for the year, variable selling andadministrative expenses were $120,060, and fixed selling andadministrative expenses were $161,386. There was no beginninginventory. Assume that direct labor is a variable cost. |
The contribution margin per unit would be: (Do not roundintermediate calculations.) |
a. $21.80 per unit
b. $26.50 per unit
c. $16.20 per unit
d. $20.70 per unit
| Capizzi Corporation has an activity-based costing system with three activity cost pools-Machining, Order Filling, and Other. In the first stage allocations, costs in the two overhead accounts, equipment depreciation and supervisory expense, are allocated to three activity cost pools based on resource consumption. Data used in the first stage allocations follow: |
| Overhead costs: | |
| Equipment depreciation | $84,900 |
| Supervisory expense | $9,500 |
| Distribution of Resource Consumption Across Activity Cost Pools: | |||
| Activity Cost Pools | |||
| Machining | Order Filling | Other | |
| Equipment depreciation | 0.60 | 0.20 | 0.20 |
| Supervisory expense | 0.60 | 0.10 | 0.30 |
| Machining costs are assigned to products using machine-hours (MHs) and Order Filling costs are assigned to products using the number of orders. The costs in the Other activity cost pool are not assigned to products. Activity data for the company's two products follow: |
| Activity: | ||
| MHs (Machining) | Batches (Order Filling) | |
| Product Y7 | 1,700 | 1,260 |
| Product V2 | 9,960 | 1,710 |
| Total | 11,660 | 2,970 |
| What is the overhead cost assigned to Product V2 under activity-based costing? (Round your intermediate calculations to 2 decimal places and final answer to nearest whole dollar amount.) |
$58,734
$73,620
$10,328
$48,406
