Activity Rates Zapato Company produces two types of boots: vaquero and vaquera. There are four activities associated with the two products. Drivers for the four activities are as follows: Vaquero Vaquera 2,300 5,400 Cutting hours Assembly hours 2,800 4,650 Inspection hours 875 2,430 Rework hours 200 450 The following activity data have been collected: Cutting $169,400 Assembling $298,000 Inspecting $66,100 Reworking $39,000 Required: Calculate the activity rates that would be used to assign costs to each product. If required, round your answers to the nearest cent. Cutting: per cutting hour Assembling: per assembling hour Inspecting: per inspecting hour Reworking: per reworking hour

Activity Rates Zapato Company produces two types of boots: vaquero and vaquera. There are four activities associated with the two products. Drivers for the four activities are as follows: Vaquero Vaquera 2,300 5,400 Cutting hours Assembly hours 2,800 4,650 Inspection hours 875 2,430 Rework hours 200 450 The following activity data have been collected: Cutting $169,400 Assembling $298,000 Inspecting $66,100 Reworking $39,000 Required: Calculate the activity rates that would be used to assign costs to each product. If required, round your answers to the nearest cent. Cutting: per cutting hour Assembling: per assembling hour Inspecting: per inspecting hour Reworking: per reworking hour

Name: Activity RatesZapato Company produces two types of boots: vaquero and
Uploaded: 2024-03-20T06:32:49.000Z
Channel: Bartleby
Description: Activity RatesZapato Company produces two types of boots: vaquero and vaquera. There are four activities associated with the two products. Drivers for thefour activities are as follows:VaqueroVaqueraCutting hours2,3005,400Assembly hours2,8004,650Ins

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter4: Activity-based Costing

Section: Chapter Questions

Problem 4BE: Activity-based costing: selling and administrative expenses Jungle Junior Company manufactures and...

See similar textbooks

Similar questions

Rough Stuff makes 2 products: khaki shorts and khaki pants for men. Each product passes through the cutting machine area, which is the chief constraint during production. Khaki shorts take 15 minutes on the cutting machine and have a contribution margin per pair of shorts of $16. Khaki pants take 24 minutes on the cutting machine and have a contribution margin per pair of pants of $32. If it is assumed that Rough Stuff has 4,800 hours available on the cutting machine to service a minimum demand for each product of 3,000 units, how many of each product should be made?
Consumption Ratios Zapato Company produces two types of boots: vaquero and vaquera. There are four activities associated with the two products. Drivers for the four activities are as follows: Vaquero Vaquera Cutting hours 2,160 5,400 Assembly hours 2,850 4,650 Inspection hours 940 2,430 Rework hours 150 450 Required: 1. Calculate the consumption ratios for the four drivers. Round your answers to two decimal places. Activity Driver Vaquero Vaquera Cutting hours fill in the blank 1 fill in the blank 2 Assembly hours fill in the blank 3 fill in the blank 4 Inspection hours fill in the blank 5 fill in the blank 6 Rework hours fill in the blank 7 fill in the blank 8 2. Is there evidence of product diversity? Explain.
Consumption Ratios Zapato Company produces two types of boots: vaquero and vaquera. There are four activities associated with the two products. Drivers for the four activities are as follows: Vaquero Vaquera Cutting hours 2,130 5,400 Assembly hours 2,850 4,650 Inspection hours 990 2,430 Rework hours 150 450 Required: 1. Calculate the consumption ratios for the four drivers. Round your answers to two decimal places. Activity Driver Vaquero Vaquera Cutting hours Assembly hours Inspection hours Rework hours 2. Is there evidence of product diversity? Explain.
Activity Rates Zapato Company produces two types of boots: vaquero and vaquera. There are four activities associated with the two products. Drivers for the four activities are as follows: Vaquero Vaquera Cutting hours 2,100 5,400 Assembly hours 2,650 4,650 Inspection hours 700 2,430 Rework hours 250 450 The following activity data have been collected: Cutting $165,000 Assembling $328,500 Inspecting $50,080 Reworking $52,500 Required: Calculate the activity rates that would be used to assign costs to each product. If required, round your answers to the nearest cent. Cutting: $fill in the blank 1 per cutting hour Assembling: $fill in the blank 2 per assembling hour Inspecting: $fill in the blank 3 per inspecting hour Reworking: $fill in the blank 4 per reworking hour
Activity Rates Zapato Company produces two types of boots: vaquero and vaquera. There are four activities associated with the two products. Drivers for the four activities are as follows: Vaquero Vaquera Cutting hours 4,000 5,900 Assembly hours 2,650 4,750 Inspection hours 945 2,390 Rework hours 200 600 The following activity data have been collected: Cutting $277,200 Assembling $222,000 Inspecting $53,360 Reworking $48,000 This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the question below.
Zapato Company produces two types of boots: vaquero and vaquera. There are four activities associated with the two products. Drivers for the four activities are as follows: Vaquero Vaquera Cutting hours 2,120 5,400 Assembly hours 2,850 4,650 Inspection hours 980 2,430 Rework hours 150 450 Required: 1. Calculate the consumption ratios for the four drivers. Round your answers to two decimal places. Activity Driver Vaquero Vaquera Cutting hours Assembly hours Inspection hours Rework hours
Consumption Ratios; Activity Rates Saludable Company produces two types of get-well cards: scented and regular. Drivers for the four activities are as follows: Scented Cards Regular Cards Inspection hours 130 80 Setup hours 80 10 Machine hours 210 550 Number of moves 210 80 The following activity data has been collected: Inspecting products $5,100 Setting up equipment 4,660 Machining 6,490 Moving materials 1,340 Required: 1. Calculate the consumption ratios for the four drivers. Round your answers to two decimal places.
Question Content Area Activity Rates Zapato Company produces two types of boots: vaquero and vaquera. There are four activities associated with the two products. Drivers for the four activities are as follows: Vaquero Vaquera Cutting hours 2,000 5,400 Assembly hours 2,850 4,650 Inspection hours 675 2,430 Rework hours 100 450 The following activity data have been collected: Cutting $177,600 Assembling $337,500 Inspecting $49,680 Reworking $33,000 Required: Calculate the activity rates that would be used to assign costs to each product. If required, round your answers to the nearest cent. Cutting: ____ per cutting hour Assembling: ____per assembling hour Inspecting: ____per inspecting hour Reworking: ____per reworking hour
Consumption Ratios; Activity Rates Saludable Company produces two types of get-well cards: scented and regular. Drivers for the four activities are as follows: Scented Cards Regular Cards Inspection hours 100 80 Setup hours 80 30 Machine hours 200 550 Number of moves 215 75 The following activity data has been collected: Inspecting products $5,020 Setting up equipment 4,850 Machining 6,360 Moving materials 1,390 Required: 1. Calculate the consumption ratios for the four drivers. Round your answers to two decimal places. Scented Cards Regular Cards Inspection hours fill in the blank 1 fill in the blank 2 Setup hours fill in the blank 3 fill in the blank 4 Machine hours fill in the blank 5 fill in the blank 6 Number of moves fill in the blank 7 fill in the blank 8 2. Which of the following statements indicate there is product diversity? Explain the significance of product diversity for decision making if the company chooses…
A firm makes a range of running shoes. There are three models – Short; Middle; and Long distance. The products are aimed at different segments of the market. Product costs are computed using an overhead rate based on the labour hour method. Selling prices are set on full cost plus 20%. A unit refers to a pair of running shoes. The following information is available: Short distance Middle distance Long distance Direct material cost per unit $25 $35 $40 Labour hours per unit 2 hrs 2 hrs 2 hrs Labour rate per hour $12 $12 $12 Total labour hours used 120,000 hrs 24,000 hrs 16,000 hrs Total number of units 60,000 units 12,000 units 8,000 units Cost driver information: Short distance Middle distance Long distance No. of machine hours 60,000 48,000 48,000 No. of material orders 30 100 200 No. of sales orders 12 48 63 The total overhead costs for the business amount to $1.2…
Consumption Ratios; Activity RatesSaludable Company produces two types of get-well cards: scented and regular. Drivers for the four activities are as follows: Scented Cards Regular Cards Inspection hours 1,080 720 Setup hours 420 180 Machine hours 960 2,880 Number of moves 2,880 720 The following activity data have been collected: Inspecting products $45,000 setting up equipment 28,500 Machining 30,720 Moving materials 16,200 Required:1. Calculate the consumption ratios for the four drivers (round to two decimal places).2. CONCEPTUAL CONNECTION Is there evidence of product diversity? Explain the significance of product diversity for decision making if the company chooses to use machine hours to assign all overhead.3. Calculate the activity rates that would be used to assign costs to each product (round to two decimal places).4. Suppose that the activity rate for inspecting products is $20 per inspection hour. How many hours of inspection are expected…
Consumption Ratios; Activity Rates Saludable Company produces two types of get-well cards: scented and regular. Drivers for the four activities are as follows: Scented Cards Regular Cards Inspection hours 1,080 720 Setup hours 420 180 Machine hours 960 2,880 Number of moves 2,880 720 The following activity data has been collected: Inspecting products $45,000 Setting up equipment 28,500 Machining 30,720 Moving materials 16,200 Required: 1. Calculate the consumption ratios for the four drivers (round to two decimal places). Scented Cards Regular Cards Inspection hours Setup hours Machine hours Number of moves 2. Which of the following statements indicate there is product diversity? Explain the significance of product diversity for decision making if the company chooses to use machine hours to assign all overhead. If machine hours are used as the only driver, cards would receive 25% of the overhead, and…