MANAGERIAL ACCOUNTING F/MGRS.
6th Edition
ISBN: 9781264100590
Author: Noreen
Publisher: RENT MCG
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Textbook Question
Chapter 5A, Problem 5A.2E
Time-Driven Activity-Based Costing LO5—7
Refer to the data in Exercise 5A—1. In addition, assume that Saratoga Company provided the following activity data for all jobs produced during the year:
Required:
- Calculate Saratoga’s used capacity in minutes.
- Calculate Saratoga’s unused capacity in minutes.
- Calculate Saratoga’s unused capacity in number of employees. (Do not round your answer to a whole number.)
- Calculate the impact on expenses of matching capacity with demand. (Be sure to round your potential adjustment in the number of employees to a whole number.)
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Students have asked these similar questions
Assume a company's activity-based costing system Includes three activities. The following Information is avallable with respect to those activitles:
Estimated
Overhead
Activity Cost Pol
Travel
Cost
Expected Activity
$ 150,000
$ 110,000
$ 220,000
100.000 miles driven
Deliverles
2,200 customer deliverles
Customer service
10,000 phone calls
What is the activity rate for the Travel activity?
Multiple Choice
$1.50 per mile driven
$15.00 per mile driven
$0.15 per mile driven
$1.15 per mile driven
A
B
C
D
1 The cost data for Evencoat Paint for the year 2019 is as follows:
2
Equipment
3
Gallons of Paint
Maintenance
Month
Produced
Expense
4
Jan
110,000
$70,700.00
5
Feb
68,000
$66,800.00
60
Mar
71,000
$67,000.00
7
Apr
77,000
$68,100.00
ос
8
May
95,000
$69,200.00
9
Jun
101,000
$70,300.00
10
Jul
125,000
$70,400.00
11
Aug
95,000
$68,900.00
12
Sep
95,000
$69,500.00
13
Oct
89,000
$68,600.00
14
Nov
128,000
$72,800.00
15
Dec
122,000
$71,450.00
Consider a company facing a demand pattern and costs as follows:
Sequential Requirements
Number
(units)
1
20
2
40
3
110
4
120
60
30
20
30
80
120
130
40
800
Month
January
February
March
April
May
June
July
August
September
October
November
December
At
ht
5
6
7
8
9
10
11
12
Total
$25.00
$ 0.20
a. Construct a replenishment schedule and calculate the associated costs using the Lot for
Lot method.
b. Repeat using the Fixed Economic Order Quantity method.
c. Repeat using the Periodic Order Quantity method.
d. Repeat using the Wagner-Whitin Algorithm. (Note: Students are required to solve this
Chapter 5A Solutions
MANAGERIAL ACCOUNTING F/MGRS.
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