1. Compute an activity rate for each activity using activity-based costing. Required informationUse the following information for the Problems below. (Algo)[The following information applies to the questions displayed below.]Tent Master produces Pup tents and Pop-up tents. The company budgets $301,000 of overhead cost and 43,000 directlabor hours. Additional information follows.Selling Price$ 80Per UnitDirect MaterialsDirect Labor$ 21$ 46Pup tentPop-up tent752228Problem 4-3A (Algo) Using activity-based costing to allocate overhead cost, and compute overhead costper unit and gross profit per unit LO P3ActivityAssemblyElectricityMaterials purchasingBudgeted Cost$ 215,00025,00061,000$ 301,000Activity Cost DriverDirect labor hours (DLH)Machine hours (MH)Purchase orders (PO)BudgetedActivity Usage43,00010,000500Total Required 1Required 2Required 3Required 4Compute an activity rate for each activity using activity-based costing. (Round "Activity Rate" to 2 decimal places.)ActivityBudgeted CostBudgeted Activity UsageActivity RateAssemblyElectricityMaterials purchasing

Name: 1. Compute an activity rate for each activity using activity-based cos
Uploaded: 2024-03-20T06:32:49.000Z
Channel: Bartleby
Description: 1. Compute an activity rate for each activity using activity-based costing. Required informationUse the following information for the Problems below. (Algo)[The following information applies to the questions displayed below.]Tent Master produces Pup

Activity based costing means where the product is valued on the basis of actual direct material ,…

Answered: 1. Compute an activity rate for each…

Business

Accounting

1. Compute an activity rate for each activity using activity-based costing.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 9MC: Which is not a step In activity-based costing? A. identify the activities performed by the...

See similar textbooks

Similar questions

Activity-based costing systems: A. use a single predetermined overhead rate based on machine hours instead of on direct labor B. frequently increase the overhead allocation to at least one product while decreasing the overhead allocation to at least one other product C. limit the number of cost pools D. always result in an increase of at least one products selling price
Caseys Kitchens three cost pools and overhead estimates are as follows: Compare the overhead allocation using: A. The traditional allocation method B. The activity based costing method (Hint: the traditional method uses machine hours as the allocation base.)
Which is not a step In activity-based costing? A. identify the activities performed by the organization B. identify the cost driver(s) associated with each activity C. compute a cost rate per production D. assign costs to products by multiplying the cost driver rate by the volume of the cost driver units consumed by the product
Carltons Kitchens three cost pools and overhead estimates are as follows: Compare the overhead allocation using: A. The traditional allocation method B. The activity-based costing method (Hint: the traditional method uses machine hours as the allocation base.)
1. Compute for the total cost accounted for using FIFO 2. Compute for the total cost transferred to the next department using average costing. 3. Compute for the unit cost transferred to the next department using FIFO.
Required:1. Calculate the cost per unit for each product using direct labor hours to assign all overheadcosts.2. Calculate activity rates and determine the overhead cost per unit. Compare these costs withthose calculated using the unit-based method. Which cost is the most accurate? Explain.
1. Compute for the equivalent units of production using FIFO. 2. Compute for the cost per equivalent unit using average costing. 3. Compute for the total cost transferred to the next department using FIFO. 4. Compute for the cost of WIP, end using Average costing.
Required: Compute for the total cost transferred to the next department using average costing. * Compute for the unit cost transferred to the next department using FIFO. * Compute for the total cost accounted for using FIFO.
5-6A : Compute the overhead rate for each activity pool. Determine the overhead cost allocated to each product. **Need Help with 5-7A, having to use excel**
A company manufactures and sells two products: Product T8 and Product P4. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity:
1. Calculate the overhead rate based on the traditional overhead allocation method using direct labour hours as the base. 2. Calculate the total overhead applied to order no. 147 using the traditional overhead rate calculated in question 3.1 above. 3. Using activity based costing (ABC), calculate the overhead rate for the following activity: Purchasing. That is, what is the overhead rate per purchase order?
Info in images Required: 1. Compute the product margins for the B300 and T500 under the company’s traditional costing system. 2. Compute the product margins for B300 and T500 under the activity-based costing system. 3. Prepare a quantitative comparison of the traditional and activity-based cost assignments. 1. Compute the product margins for the B300 and T500 under the company’s traditional costing system. (Round your intermediate calculations to 2 decimal places and final answers to the nearest whole dollar amount.) B300 T500 Total Product margin $0 2. Compute the product margins for B300 and T500 under the activity-based costing system. (Negative product margins should be indicated by a minus sign. Round your intermediate calculations to 2 decimal places.) B300 T500 Total Product margin $0 3. Prepare a quantitative comparison of the traditional and activity-based cost assignments. (Round your intermediate calculations to 2…