Manji Activity Cost PoolSupporting direct laborOrder processingCustom design processingCustomer serviceActivity Rate$ 26 per direct labor-hour$ 284 per order$ 186 per custom design$ 379 per customerManagement would like an analysis of the profitability of a particular customer, Big Sky Outfitters, which has ordered the follproducts over the last 12 months:Number of glidersNumber of ordersNumber of custom designsDirect labor-hours per gliderSelling price per gliderStandardModelCustomDesign20313026.35328.00$ 1,850$ 2,400Direct materials cost per gliderThe company's direct labor rate is $19.50 per hour.Required:$ 564$ 634Using the company's activity-based costing system, compute the customer margin of Big Sky Outfitters.Note: Round your intermediate calculations and final answer to the nearest whole dollar amount.Customer margin

Name: Manji Activity Cost PoolSupporting direct laborOrder processingCustom
Uploaded: 2024-03-20T06:33:06.000Z
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Description: Manji Activity Cost PoolSupporting direct laborOrder processingCustom design processingCustomer serviceActivity Rate$ 26 per direct labor-hour$ 284 per order$ 186 per custom design$ 379 per customerManagement would like an analysis of the profitabili

ACTIVITY BASED COSTINGActivity Based Costing is a powerful tool for measuring…

Business

Accounting

Activity Cost Pool Supporting direct labor Order processing Custom design processing Customer service Activity Rate $ 26 per direct labor-hour $ 284 per order $ 186 per custom design $ 379 per customer

Activity Cost Pool Supporting direct labor Order processing Custom design processing Customer service Activity Rate $ 26 per direct labor-hour $ 284 per order $ 186 per custom design $ 379 per customer

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...

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Exercise 7-5 (Algo) Product and Customer Profitability Analysis [LO7-4, LO7-5] Thermal Rising, Incorporated, makes paragliders for sale through specialty sporting goods stores. The company has a standard paraglider model, but also makes custom-designed paragliders. Management designed an activity-based costing system with the following activity cost pools and activity rates: Activity Cost Pool Supporting direct labor Order processing Custom design processing Customer service Management wants to calculate the profitability of a particular customer, Big Sky Outfitters, which ordered the following products over the last 12 months: Number of gliders Number of orders Activity Rate $ 22 per direct labpr-hour $190 per order $ 254 per custom design $ 428 per customer Number of custom designs Direct labor-hours per glider Selling price per glider Direct materials cost per glider The company's direct labor rate is $16 per hour. Standard Model 13 1 0 29.50 $ 1,850 $ 464 Custom Design 2 2 2 34.00…
Thermal Rising, Inc., makes paragliders for sale through specialty sporting goods stores. The company has a standard paraglider model, but also makes custom-designed paragliders. Management has designed an activity-based costing system with the following activity cost pools and activity rates: Activity Cost Pool Supporting direct labor Order processing Custom design processing Customer service Activity Rate $ 20 per direct labor-hour $ 192 per order $ 268 per custom design $ 428 per customer Management would like an analysis of the profitability of a particular customer, Big Sky Outfitters, which has ordered the following products over the last 12 months: Standard Custom Model Design Number of gliders 15 Number of orders 2 Number of custom designs Direct labor -hours per glider Selling price per glider Direct materials cost per glider 27.50 32.00 $ 1,850 $ 2,420 458 $ 578 rch 近

paraglider model, but also makes custom-designed paragliders. Management designed an activity-based costing s following activity cost pools and activity rates: Activity Cost Pool Supporting direct labor Order processing Custom design processing Customer service Activity Rate $ 26 per direct labor-hour $ 284 per order $ 186 per custom design $ 379 per customer Management wants to calculate the profitability of a particular customer, Big Sky Outfitters, which ordered the follo the last 12 months: Number of gliders Number of orders Number of custom designs Direct labor-hours per glider Selling price per glider Direct materials cost per glider Standard Custom Model Design 20 3 1 3. 0 3 26.35 28.00 $ 1,850 $ 564 $ 2,400 $ 634 The company's direct labor rate is $19.50 per hour. Required: Using the company's activity-based costing system, compute the customer margin of Big Sky Outfitters. Note: Round your intermediate calculations and final answer to the nearest whole dollar amount.
Multiple Versus Single Overhead Rates, Activity Drivers Deoro Company has identified the following overhead activities, costs, and activity drivers for the coming year: Activity Expected Cost Activity Driver Activity Capacity Setting up equipment $480,000 Number of setups 600 Ordering costs 360,000 Number of orders 18,000 Machine costs 840,000 Machine hours 42,000 Receiving 400,000 Receiving hours 10,000 Deoro produces two models of dishwashers with the following expected prime costs and activity demands: Model A Model B Direct materials $600,000 $800,000 Direct labor $480,000 $480,000 Units completed 16,000 8,000 Direct labor hours 6,000 2,000 Number of setups 400 200 Number of orders 6,000 12,000 Machine hours 24,000 18,000 Receiving hours 3,000 7,000 The company's normal activity is 8,000 direct labor hours.…
Multiple Versus Single Overhead Rates, Activity Drivers Deoro Company has identified the following overhead activities, costs, and activity drivers for the coming year: Activity Expected Cost Activity Driver Activity Capacity Setting up equipment $480,000 Number of setups 600 Ordering costs 360,000 Number of orders 18,000 Machine costs 840,000 Machine hours 42,000 Receiving 400,000 Receiving hours 10,000 Deoro produces two models of dishwashers with the following expected prime costs and activity demands: Model A Model B Direct materials $600,000 $800,000 Direct labor $480,000 $480,000 Units completed 16,000 8,000 Direct labor hours 6,000 2,000 Number of setups 400 200 Number of orders 6,000 12,000 Machine hours 24,000 18,000 Receiving hours 3,000 7,000 The company's normal activity is 8,000 direct labor hours.…
Approximately Relevant Silven Company has identified the following overhead activities, costs, and activity drivers for the coming year: Activity Expected Cost Setting up equipment $138,000 Ordering materials 10,200 Machining 92,400 Receiving 18,480 Silven produces two models of cell phones with the following expected activity demands: Model X Model Y 5,000 80 200 Units completed Number of setups Number of orders Machine hours Receiving hours Required: 6,600 385 Activity Driver Activity Capacity Number of setups Number of orders Machine hours Receiving hours 10,000 40 400 4,950 770 120 600 11,550 1,155
< Multiple Versus Single Overhead Rates, Activity Drivers Deoro Company has identified the following overhead activities, costs, and activity drivers for the coming year: Expected Cost Activity Driver Activity Capacity Number of setups Number of orders Activity Setting up equipment Ordering costs Machine costs Receiving Receiving hours Deoro produces two models of dishwashers with the following expected prime costs and activity demands: Direct materials Direct labor Units completed Direct labor hours Number of setups Number of orders Machine hours Receiving hours $464,550 Required: 336,300 747,000 424,200 Model A Machine hours $604,000 498,000 17,000 5,800 410 Model B $804,000 456,000 8,700 1,500 6,200 23,500 3,800 The company's normal activity is 7,300 direct labor hours. 160 11,500 18,000 6,300 570 17,700 41,500 10,100 1. Determine the unit cost for each model using direct labor hours to apply overhead. Round intermediate calculations and final answers to nearest cent.
Multiple Versus Single Overhead Rates, Activity Drivers Deoro Company has identified the following overhead activities, costs, and activity drivers for the coming year: Activity Expected Cost Activity Driver Activity Capacity Setting up equipment Ordering costs Machine costs Direct materials Direct labor Units completed Direct labor hours Number of setups Number of orders Machine hours Machine hours Receiving Receiving hours Deoro produces two models of dishwashers with the following expected prime costs and activity demands: Model A Model B $754,000 473,000 7,800 2,400 Receiving hours Model A $407,490 374,000 952,200 6,500 360 6,100 12,600 24,400 17,000 2,600 6,400 The company's normal activity is 8,900 direct labor hours. Model B 405,000 Model A $593,000 478,000 Model B Number of setups Number of orders 16,800 Required: 1. Determine the unit cost for each model using direct labor hours to apply overhead. Round intermediate calculations and final answers to nearest cent. Unit Cost 150…
Required information Use the following information for the Problems below. (Algo) Skip to question [The following information applies to the questions displayed below.]Tent Master produces Pup tents and Pop-up tents. The company budgets $360,000 of overhead cost and 60,000 direct labor hours. Additional information follows. Per Unit Selling Price Direct Materials Direct Labor Pup tent $ 85 $ 20 $ 47 Pop-up tent 80 27 31 Problem 17-3A (Algo) Using activity-based costing to allocate overhead cost, and compute overhead cost per unit and gross profit per unit LO P3 Activity Budgeted Cost Activity Cost Driver Budgeted Activity Usage Assembly $ 240,000 Direct labor hours (DLH) 60,000 Electricity 42,000 Machine hours (MH) 10,000 Materials purchasing 78,000 Purchase orders (PO) 500 Total $ 360,000 Required:1. Compute an activity rate for each activity using activity-based costing.2. The following actual activity usage produced 10,000 Pup tents and…
Deoro Company has identified the following overhead activities, costs, and activity drivers for the coming year: Activity Expected Cost Activity Driver Activity Capacity Setting up equipment Number of setups Ordering costs Number of orders Machine costs Receiving Direct materials Direct labor Deoro produces two models of dishwashers with the following expected prime costs and activity demands: Model A Units completed Direct labor hours Number of setups Number of orders $627,000 481,000 16,200 6,400 370 5,800 24,900 3,700 The company's normal activity is 7,900 direct labor hours. Machine hours Receiving hours Required: Model A Model B $482,510 372,000 864,000 410,000 Receiving hours Model A Machine hours $ del B Model B Unit Cost $836,000 497,000 8,500 1,500 240 1. Determine the unit cost for each model using direct labor hours to apply overhead. Round intermediate calculations and final answers to nearest cent. 12,800 18,300 6,300 610 18,600 43,200 10,000 2. Determine the unit cost for…
Multiple Versus Single Overhead Rates, Activity Drivers Deoro Company has identified the following overhead activities, costs, and activity drivers for the coming year: Activity Expected Cost Activity Driver Activity Capacity Setting up equipment $481,900 Number of setups 610 Ordering costs 457,700 Number of orders 19,900 Machine costs 702,100 Machine hours 41,300 Receiving 445,500 Receiving hours 9,900 Deoro produces two models of dishwashers with the following expected prime costs and activity demands: Model A Model B Direct materials $560,000 $781,000 Direct labor 490,000 481,000 Units completed 16,400 7,700 Direct labor hours 5,400 2,000 Number of setups 370 240 Number of orders 7,000 12,900 Machine hours 23,900 17,400 Receiving hours 3,100 6,800 The company's normal activity is 7,400 direct labor hours. Required: 1. Determine the unit cost for each model using direct labor hours to apply overhead. Round intermediate calculations and final…
Multiple Versus Single Overhead Rates, Activity Drivers Deoro Company has identified the following overhead activities, costs, and activity drivers for the coming year: Activity Expected Cost Activity Driver Activity Capacity Setting up equipment $449,680 Number of setups 560 Ordering costs 343,900 Number of orders 18,100 Machine costs 915,600 Machine hours 43,600 Receiving 457,800 Receiving hours 10,900 Deoro produces two models of dishwashers with the following expected prime costs and activity demands: Model A Model B Direct materials $638,000 $823,000 Direct labor $493,000 $465,000 Units completed 15,600 8,700 Direct labor hours 6,000 2,300 Number of setups 350 210 Number of orders 6,100 12,000 Machine hours 24,700 18,900 Receiving hours 3,700 7,200 The company's normal activity is 8,300 direct labor hours.