Ascertain the global consumption ratio for the two models.

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Answer 1

Question

Chapter 4, Problem 22E

1.

To determine

Ascertain the global consumption ratio for the two models.

2.

To determine

Identify that the same cost assignment can be achieved using number of orders and number of setups as that of the complete, four-driver ABC system using the activity consumption ratios of these two drivers.

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Please include a solution. ThanksThe joint production cost allocation result in the following values:(see pic)REQUIRED: Compute the weighted units and cost per unit of each product.

The background info is provided in the image attached. Solve the following: a) Classify each cost element as either fixed, variable, or mixed. b) Calculate:i) the variable production cost per unit and the total fixed production overhead. ii) The total variable cost per unit and the total fixed costsHint: Use the high-low method to separate mixed costs into their fixed and variable components.

The three guidelines for refinement include: O A. 1. Classify as many of the total costs as direct costs as is economically feasible. 2. Expand the number of indirect cost pools until each of these pools is more homogenous 3. Use the cause-and-effect criterion, when possible, to identify the cost-allocation base for each indirect-cost pool. OB. 1. Identify the products that are the chosen cost objects. 2. Identify the direct and indirect costs of the products. 3. Compute the total cost of the products by adding all direct and indirect costs assigned to the products. O C. 1. Set cost reduction targets in terms of reducing the cost per unit of a cost-allocation base in different activity areas. 2. Perform an analysis of the factors that cause costs to be incurred (cost drivers) in order to identify opportunities for improving the way work is done. 3. Evaluate whether particular nonvalue-added activities can be reduced or eliminated. O D. 1. Select the activities and cost-allocation bases…

Answer 2

Question

Chapter 4, Problem 22E

1.

To determine

Ascertain the global consumption ratio for the two models.

2.

To determine

Identify that the same cost assignment can be achieved using number of orders and number of setups as that of the complete, four-driver ABC system using the activity consumption ratios of these two drivers.

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Answer 3

Question

Chapter 4, Problem 22E

1.

To determine

Ascertain the global consumption ratio for the two models.

2.

To determine

Identify that the same cost assignment can be achieved using number of orders and number of setups as that of the complete, four-driver ABC system using the activity consumption ratios of these two drivers.

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Answer 4

Question

Chapter 4, Problem 22E

1.

To determine

Ascertain the global consumption ratio for the two models.

2.

To determine

Identify that the same cost assignment can be achieved using number of orders and number of setups as that of the complete, four-driver ABC system using the activity consumption ratios of these two drivers.

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Answer 5

Chapter 4, Problem 22E

1.

To determine

Ascertain the global consumption ratio for the two models.

2.

To determine

Identify that the same cost assignment can be achieved using number of orders and number of setups as that of the complete, four-driver ABC system using the activity consumption ratios of these two drivers.

Answer 6

Chapter 4, Problem 22E

1.

To determine

Ascertain the global consumption ratio for the two models.

Answer 7

Chapter 4, Problem 22E

1.

To determine

Ascertain the global consumption ratio for the two models.

Answer 8

2.

To determine

Identify that the same cost assignment can be achieved using number of orders and number of setups as that of the complete, four-driver ABC system using the activity consumption ratios of these two drivers.

Answer 9

2.

To determine

Identify that the same cost assignment can be achieved using number of orders and number of setups as that of the complete, four-driver ABC system using the activity consumption ratios of these two drivers.

Answer 10

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Answer 11

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Answer 12

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Answer 13

Ch. 4 - What is a predetermined overhead rate? Explain why...Ch. 4 - Describe what is meant by under- and overapplied...Ch. 4 - Explain how a plantwide overhead rate, using a...Ch. 4 - What are non-unit-related overhead activities?...Ch. 4 - What is an overhead consumption ratio?Ch. 4 - Overhead costs are the source of product cost...Ch. 4 - What is activity-based product costing?Ch. 4 - What are the six steps that define the design of...Ch. 4 - Explain how the cost of resources is assigned to...Ch. 4 - Prob. 10DQ

Ascertain the global consumption ratio for the two models.

Solution Summary: The author explains the global consumption ratio, which is the proportion of the total activity costs consumed by a given product.

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Ascertain the global consumption ratio for the two models.

Identify that the same cost assignment can be achieved using number of orders and number of setups as that of the complete, four-driver ABC system using the activity consumption ratios of these two drivers.

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