A Corporation uses an activity-based costing system with three activity cost pools. The company has provided the following data concerning its costs and its activity-based costing system: Cost: Wages and salaries. Depreciation Utilities Total MENU TOW OF CINECITANGGUN Distribution of resource consumption: Assembly 20% 15% 5% Wages and salaries Depreciation Utilities ****** Answer. (Click to select) ***¨¨¨¨¨¨¨¨¨¨¨¨..…......... (Click to select) Activity Cost Pools Setting Up Other 60% 20% 35% 50% 55% 40% Q. How much cost, in total, would be allocated in the first-stage allocation to the Assembly activity cost pool? $103,200 $130,200 $93,200 $120,200 $466,000 $180,000 $200,000 $846,000 Total 100% 100% 100%

A Corporation uses an activity-based costing system with three activity cost pools. The company has provided the following data concerning its costs and its activity-based costing system: Cost: Wages and salaries. Depreciation Utilities Total MENU TOW OF CINECITANGGUN Distribution of resource consumption: Assembly 20% 15% 5% Wages and salaries Depreciation Utilities **** Answer. (Click to select) *¨¨¨¨¨¨¨¨¨¨¨¨..…......... (Click to select) Activity Cost Pools Setting Up Other 60% 20% 35% 50% 55% 40% Q. How much cost, in total, would be allocated in the first-stage allocation to the Assembly activity cost pool? $103,200 $130,200 $93,200 $120,200 $466,000 $180,000 $200,000 $846,000 Total 100% 100% 100%

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter12: Activity-based Management

Section: Chapter Questions

Problem 1CE: Cicleta Manufacturing has four activities: receiving materials, assembly, expediting products, and...

See similar textbooks

Similar questions

To determine the effect of different levels of production on the company’s income, move to cell B7 (Actual production). Change the number in B7 to the different production levels given in the table below. The first level, 100,000, is the current level. What happens to the operating income on both statements as production levels change? Enter the operating incomes in the following table. Does the level of production affect income under either costing method? Explain your findings.
A manufacturing company has two service and two production departments. Building Maintenance and Factory Office are the service departments. The production departments are Assembly and Machining. The following data have been estimated for next years operations: The direct charges identified with each of the departments are as follows: The building maintenance department services all departments of the company, and its costs are allocated using floor space occupied, while factory office costs are allocable to Assembly and Machining on the basis of direct labor hours. 1. Distribute the service department costs, using the direct method. 2. Distribute the service department costs, using the sequential distribution method, with the department servicing the greatest number of other departments distributed first.
In 20x2, Choctaw Company implements a new process affecting labor and materials. The following reported data are provided to evaluate the effect on the companys productivity: Required: 1. Calculate the productivity profile for 20x1. 2. Calculate the productivity profile for 20x2, and comment on the effect of the new production and assembly process. 3. What if the labor hours used in 20x2 were 112,500? What does comparison of the 20x1 and 20x2 profiles now communicate?
Summarized data for Backdraft Co. for its first year of operations are as follows: A. Prepare an income statement under absorption costing B. Prepare an income statement under variable costing
Sanford, Inc., has developed value-added standards for four activities: purchasing parts, receiving parts, moving parts, and setting up equipment. The activities, the activity drivers, the standard and actual quantities, and the price standards for 20x1 are as follows: The actual prices paid per unit of each activity driver were equal to the standard prices. Required: 1. Prepare a cost report that lists the value-added, non-value-added, and actual costs for each activity. 2. Which activities are non-value-added? Explain why. Also, explain why value-added activities can have non-value-added costs.
A manufacturing company has two service and two production departments. Human Resources and Machine Repair are the service departments. The production departments are Grinding and Polishing. The following data have been estimated for next years operations: The direct charges identified with each of the departments are as follows: The human resources department services all departments of the company, and its costs are allocated using the numbers of employees within each department, while machine repair costs are allocable to Grinding and Polishing on the basis of machine hours. 1. Distribute the service department costs, using the direct method. 2. Distribute the service department costs, using the sequential distribution method, with the department servicing the greatest number of other departments distributed first.
Cicleta Manufacturing has four activities: receiving materials, assembly, expediting products, and storing goods. Receiving and assembly are necessary activities; expediting and storing goods are unnecessary. The following data pertain to the four activities for the year ending 20x1 (actual price per unit of the activity driver is assumed to be equal to the standard price): Required: 1. Prepare a cost report for the year ending 20x1 that shows value-added costs, non-value-added costs, and total costs for each activity. 2. Explain why expediting products and storing goods are non-value-added activities. 3. What if receiving cost is a step-fixed cost with each step being 1,500 orders whereas assembly cost is a variable cost? What is the implication for reducing the cost of waste for each activity?
Identify cost graphs The following cost graphs illustrate various types of cost behavior: For each of the following costs, identify the cost graph that best illustrates its cost behavior as the number of units produced increases. a. Direct material cost per unit. b. Fees for using a patent of $500,000 plus $0.25 for each unit produced. c. Salary of quality control supervisor. d. Straight-line depreciation per unit on factory equipment. e. Total direct materials cost.
Refer to the data in Exercise 7.22. The company has decided to simplify its method of allocating support service costs by switching to the direct method. Required: 1. Allocate the costs of the support departments to the producing departments using the direct method. (Round allocation ratios to four significant digits. Round allocated costs to the nearest dollar.) 2. Using direct labor hours, compute departmental overhead rates. (Round to the nearest cent.)
Poskey Corporation uses an activity-based costing system with three activity cost pools. The company has provided the following data concerning its costs and its activity based costing system:Costs:Wages and salaries ............ $400,000Depreciation ...................... 160,000Utilities .............................. 100,000Total ................................... $660,000Distribution of resource consumption:Activity Cost Pools Assembly Setting Up Other TotalWages and salaries .............. 40% 40% 20% 100%Depreciation ........................ 20% 35% 45% 100%Utilities ................................ 25% 55% 20% 100%How much cost, in total, would be allocated in the first-stage allocation to the Assembly activity cost pool?
Abagail Corp. uses activity-based costing system with three activity cost pools. The following information is provided: Costs: Wages and salaries $ 203,000 Depreciation 111,000 Utilities 114,000 Activity Cost Pools Assembly Setting Up Other Wages and salaries 0.57 30% 10% Depreciation 0.36 45% 20% Utilities 0.29 40% 30% How much total cost would be allocated to the Assembly activity cost pool?
Eccles Corporation uses an activity-based costing system with three activity cost pools. The company has provided the following data concerning its costs and its activity based costing system: Costs: Wages and salaries $ 286,000 Depreciation 270,000 Utilities 231,000 Total $ 787,000 Distribution of resource consumption: Activity Cost Pools Total Assembly Setting Up Other Wages and salaries 45% 30% 25% 100% Depreciation 35% 20% 45% 100% Utilities 10% 65% 25% 100% How much cost, in total, would be allocated in the first-stage allocation to the Assembly activity cost pool?