Describe the following activities as unit-level, batch-level, product-level, or facility- level. a. Sending truck shipments of products to customers. b. Providing computer networking processing services for the office. c. Operating a machine to make products. d. Setting up machines to make different products. e. Applying for patents on products. f. Accounting for sales transactions.
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- Please give me directions for answer confirmation Ch 26 Pro 6 Identifying Activity Bases in an Activity-Based Cost System Select Foods Inc. uses activity-based costing to determine product costs. For each activity listed in the left column, select an appropriate activity base from the right column. You may use items in the dropdown list more than once or not at all. Activity Activity Base Accounting reports Customer return processing Electric power Human resources Inventory control Invoice and collecting Machine depreciation Materials handling Order shipping Payroll Production control Production setup Purchasing Quality control Sales order processingCase N ° 3The industrial company Arica S.A. It treats a raw material A and a raw material B in Workshop 1. At the exit of this workshop a semi-finished or intermediate product is obtained that goes to the warehouse. This semi-finished product is treated again in Workshop 2, and when it leaves the finished products X and Y that enter the warehouse are produced. Regarding its economic organization, the company is divided into the following activity centers (two auxiliary and four main), which allow control over indirect costs: Administration, Energy, Purchasing, Workshop 1, Workshop 2 and Sales. I. Data common to general accounting and cost accounting: The data that constitute the starting situation of Cost Accounting are: a) Opening stocks: - Raw material A (12,000 kg): ¢ 25,200- Raw material B (36,000 kg): ¢ 95,400- Semi-finished product: nothing;- Product X (2,860 units): ¢ 33,088- Product Y (45 units): ¢ 950 b) Purchases of the period: - Raw material A: 24,000 kg at ¢ 2.10 per kg;-…True or False 1. EUP calculations are necessary to allocate product costs between units sold and ending work in process 2. In process costing, the cost per unit in a department is found by spreading the period's production cost over the production activity 3. Process costing is used to account for raw materials that are converted directly to finished goods.
- (Appendix 4B) Assigning Support Department Costs by Using the Direct Method Sanjay Company manufactures a product in a factory that has two producing departments, Assembly and Painting, and two support departments, S1 and S2. The activity driver for S1 is square footage, and the activity driver for S2 is number of machine hours. The following data pertain to Sanjay: Support Departments Producing Departments S1 S2 Assembly Painting Direct costs $200,000 $140,000 $115,000 $96,000 Normal activity: Square footage — 500 1,875 625 Machine hours 337 — 3,200 12,800 Required: 1. Calculate the cost assignment ratios to be used under the direct method for Departments S1 and S2. (Note: Each support department will have two ratios—one for Assembly and the other for Painting.) Round your answers to two decimal places. Assembly Painting S1 fill in the blank 1 fill in the blank 2 S2 fill in the blank 3 fill in the blank 4 2. Allocate the support department…INTEGRATION EXERCISE 4 Plantwide and Departmental Overhead Allocation; Activity-Based Costing; Segmented Income Statements LO3–1, LO3–2, LO3–3, LO3–4, LO4–4, LO4–5, LO5–1, LO5–3, LO5–4 Koontz Company manufactures two models of industrial components—a Basic model and an Advanced Model. The company considers all of its manufacturing overhead costs to be fixed and page 599it uses plantwide manufacturing overhead cost allocation based on direct labor-hours. Koontz’s controller prepared the segmented income statement that is shown below for the most recent year (he allocated selling and administrative expenses to products based on sales dollars): Basic Advanced Total Number of units produced and sold 20,000 10,000 30,000 Sales $3,000,000 $2,000,000 $5,000,000 Cost of goods sold 2,300,000 1,350,000 3,650,000 Gross margin 700,000 650,000 1,350,000 Selling and administrative expenses 720,000 480,000…Appendix 4B) Assigning Support Department Costs by Using the Direct Method Quillen Company manufactures a product in a factory that has two producing departments, Cutting and Sewing, and two support departments, S1 and S2. The activity driver for S1 is number of employees, and the activity driver for S2 is number of maintenance hours. The following data pertain to Quillen: Support Departments Producing Departments S1 S2 Cutting Sewing Direct costs $180,000 $150,000 $122,000 $90,500 Normal activity: Number of employees — 30 63 147 Maintenance hours 1,200 — 16,000 4,000 Required: 1. Calculate the cost assignment ratios to be used under the direct method for Departments S1 and S2. (Note: Each support department will have two ratios—one for Cutting and the other for Sewing.) Enter your answers as decimal values. S1 S2 Cutting Sewing 2. Allocate the support department costs to the producing departments by using the direct method. Use a…
- Ch. 4 Self Study Pg 316 Assign Indirect Cost to Individual Products or Services. Please solve the following based on the material given below. Per Unit Cost Information Floor Safe Business Direct Materials $20 Direct Labor 10 Manufacturing Overhead is Unkown Wall Safe Business Direct Materials $15 Direct Labor 15 Manufacturing Overhead is Unkown **Solve the Unkown Production Information Floor Safe Business Units Produced 35,000 Direct Labor Hours per unit 1 Wall Safe Business Units Produces 10,000 Direct Labor Houers per unit 1.5 ***600.000 is the estimated total manufacturing overhead Please solve these questions and explain 1) Compute the predetermined overhead rate per direct labor hour 2) How much of the total manufacturing overhead would be allocated to each product? 3) Compute the total manufacturing Cost per unit for each product.Question 3 Part I Advent Corporation has implemented an Activity Based Costing System. The company wants to useABC on its two main products, V1 and V2, and three main activities as follows:ActivityCost Driver Overhead Amount Total Driver VolumeIssuing Purchase Orders # of Purchase Orders $ 150,000 50,000Reviewing Receiving Reports # of Receiving Reports $ 175,000 20,000Making Phone Calls # of Phone Calls $ 450,000 100,000During the year:Product V1 required 150 purchase orders; 150 receiving reports; and 200 phone calls.Product V2 required100 purchase orders; 400 receiving reports; and 350 phone calls. Required:a. Compute the pre-determined overhead rate for each cost pool. b. Compute the total manufacturing overhead cost for Product V1 and Product V2.Question A6 In a process to calculate full cost for a product or service, what is the correct order of the following steps? A Apportion general overheads between departments Allocate specific departmental overheads to the relevant department Apportion service department costs to production cost centres Total product department overheads B Allocate specific departmental overheads to the relevant department Apportion general overheads between departments Total product department overheads Apportion service department costs to production cost centres C Allocate specific departmental overheads to the relevant department Apportion general overheads between departments Apportion service department costs to production cost centres Total product department overheads D Allocate specific departmental overheads to the relevant department Apportion service department costs to production cost centres Apportion general overheads between departments Total product department overheads
- Requirement 3. Classify each of the cost items (A-I) as an inventoriable cost or a period cost. Explain your answers. a. Lumber at Home Depot is a(n) ▼ inventoriable cost period cost since the lumber is ▼ an asset (inventory) held to sale to customers. presumed not to benefit future periods. The cost of lumber becomes part of ▼ cost of goods sold manufacturing overhead operating expenses when it is sold to customers. b. Electricity in an Apple manufacturing plant is a(n) ▼ inventoriable cost period cost . It is ▼ a direct cost an indirect cost of the product being produced. c. Depreciation on the shelving at Home Depot is a(n) ▼ inventoriable cost period cost . It is ▼ a cost of selling their products a cost of the products , not ▼ a cost of selling their products a cost of the products . d. Mileage for Rent a Nanny is a(n) ▼ inventoriable cost period cost since ▼ it has no inventory. it is a…AIP 8.5 Effect of Allocation Bases on Behavior LO 4 Portable Phones, plc. manufactures and sells mobile telephones for residential and commercial use. Portable Phones' plant is organized by product line, with five telephone assembly departments in total. Each of these five telephone assembly departments is responsible for the complete production of a particular telephone line, including manufacturing some parts, purchasing other parts, and assembling the unit. Each of the five assembly department managers reports to a product-line manager, who has profit responsibility for his or her product. These five product-line managers have authority over pricing, marketing, distribution, and production of their product. Each of the five assembly departments is a cost center within its respective product-line profit centers. A key component of each telephone is the circuit board(s) containing the integrated circuit chips. Each assembly department purchases the basic boards and chips to be…3.Activity based costing (ABC) is a method of allocating the indirect costs of sales commissions to products. A. true b. false