A local picnic table manufacturer has budgeted these overhead costs: Purchasing $80,000 Handling Materials 33,250 Machine Setups 72,000 Inspections 20,800 Utilities 45,000 They are considering adapting ABC costing and have estimated the cost drivers for each pool as shown: Cost Driver Activity Orders 800 Material Moves 1,330 Machine Setups 16,000 Number of Inspections 4,000 Square Feet 180,000 Recent success has yielded an order for 900 tables. Assume direct labor costs per hour of $25. Activity Order, Units 900 Direct Materials 112,600 Machine Hours 15,200 Direct Labor Hours 5,400 Number of Purchase Orders 50 Number of Material Moves 750 Number of Machine Setups 100 Number of Inspections 500 Number of Square Feet Occupied 7,000 Determine how much the job would cost given the following activities: Do not round intermediate computations and round final answers to nearest whole number. Cost Assigned Direct Materials $fill in the blank 1 Direct Labor fill in the blank 2 Number of Material Moves fill in the blank 3 Number of Machine Setups fill in the blank 4 Number of Inspections fill in the blank 5 Number of Square Feet Occupied fill in the blank 6
A local picnic table manufacturer has budgeted these overhead costs: Purchasing $80,000 Handling Materials 33,250 Machine Setups 72,000 Inspections 20,800 Utilities 45,000 They are considering adapting ABC costing and have estimated the cost drivers for each pool as shown: Cost Driver Activity Orders 800 Material Moves 1,330 Machine Setups 16,000 Number of Inspections 4,000 Square Feet 180,000 Recent success has yielded an order for 900 tables. Assume direct labor costs per hour of $25. Activity Order, Units 900 Direct Materials 112,600 Machine Hours 15,200 Direct Labor Hours 5,400 Number of Purchase Orders 50 Number of Material Moves 750 Number of Machine Setups 100 Number of Inspections 500 Number of Square Feet Occupied 7,000 Determine how much the job would cost given the following activities: Do not round intermediate computations and round final answers to nearest whole number. Cost Assigned Direct Materials $fill in the blank 1 Direct Labor fill in the blank 2 Number of Material Moves fill in the blank 3 Number of Machine Setups fill in the blank 4 Number of Inspections fill in the blank 5 Number of Square Feet Occupied fill in the blank 6
Chapter6: Activity-based, Variable, And Absorption Costing
Section: Chapter Questions
Problem 3PA: A local picnic table manufacturer has budgeted these overhead costs: They are considering adapting...
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A local picnic table manufacturer has budgeted these overhead costs:
| Purchasing | $80,000 |
| Handling Materials | 33,250 |
| Machine Setups | 72,000 |
| Inspections | 20,800 |
| Utilities | 45,000 |
They are considering adapting ABC costing and have estimated the cost drivers for each pool as shown:
| Cost Driver | Activity |
| Orders | 800 |
| Material Moves | 1,330 |
| Machine Setups | 16,000 |
| Number of Inspections | 4,000 |
| Square Feet | 180,000 |
Recent success has yielded an order for 900 tables. Assume direct labor costs per hour of $25.
| Activity | |
| Order, Units | 900 |
| Direct Materials | 112,600 |
| Machine Hours | 15,200 |
| Direct Labor Hours | 5,400 |
| Number of Purchase Orders | 50 |
| Number of Material Moves | 750 |
| Number of Machine Setups | 100 |
| Number of Inspections | 500 |
| Number of Square Feet Occupied | 7,000 |
Determine how much the
| Cost Assigned | |||
| Direct Materials | $fill in the blank 1 | ||
| Direct Labor | fill in the blank 2 | ||
| Number of Material Moves | fill in the blank 3 | ||
| Number of Machine Setups | fill in the blank 4 | ||
| Number of Inspections | fill in the blank 5 | ||
| Number of Square Feet Occupied | fill in the blank 6 | ||
|
Total Order Cost
|
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