PR 5-9 (LO 5.4) Sweet Hues Industries has adopted...Sweet Hues Industries has adopted a time-driven activity-based costing system. Its management estimates that an indirect costrate of $1.50 per minute reasonably reflects the cost of company resources.Management has estimated the amount of time that each activity uses as follows:ActivityProcess orderDriverSales orderPacking and shippingItem shippedBillingSales orderRush orderRush orderQuestionEstimated Minutes53260a. Job 226 is a standard order that contains 93 items. What is the indirect cost allocation for Job 226?Note: Round your answer to 2 decimals.b. Job 227 is a standard order that contains 18 items. What is the indirect cost allocation for Job 227?Note: Round your answer to 2 decimals.c. Job 228 is a rush order that contains 2 items. What is the indirect cost allocation for Job 228? Note:Round your answer to 2 decimals.Answer

Name: PR 5-9 (LO 5.4) Sweet Hues Industries has adopted...Sweet Hues Indust
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Description: PR 5-9 (LO 5.4) Sweet Hues Industries has adopted...Sweet Hues Industries has adopted a time-driven activity-based costing system. Its management estimates that an indirect costrate of $1.50 per minute reasonably reflects the cost of company resourc

Activity-based costing (ABC) is a method of assigning overhead and indirect costs—such as salaries…

Business

Accounting

PR 5-9 (LO 5.4) Sweet Hues Industries has adopted... Sweet Hues Industries has adopted a time-driven activity-based costing system. Its management estimates that an indirect cost rate of $1.50 per minute reasonably reflects the cost of company resources. Management has estimated the amount of time that each activity uses as follows: Activity Process order Packing and shipping Billing Rush order Driver Sales order Item shipped Sales order Rush order Estimated Minutes 5 3 2 60 Question a. Job 226 is a standard order that contains 93 items. What is the indirect cost allocation for Job 226? Note: Round your answer to 2 decimals. b. Job 227 is a standard order that contains 18 items. What is the indirect cost allocation for Job 227? Note: Round your answer to 2 decimals. c. Job 228 is a rush order that contains 2 items. What is the indirect cost allocation for Job 228? Note: Round your answer to 2 decimals. Answer

PR 5-9 (LO 5.4) Sweet Hues Industries has adopted... Sweet Hues Industries has adopted a time-driven activity-based costing system. Its management estimates that an indirect cost rate of $1.50 per minute reasonably reflects the cost of company resources. Management has estimated the amount of time that each activity uses as follows: Activity Process order Packing and shipping Billing Rush order Driver Sales order Item shipped Sales order Rush order Estimated Minutes 5 3 2 60 Question a. Job 226 is a standard order that contains 93 items. What is the indirect cost allocation for Job 226? Note: Round your answer to 2 decimals. b. Job 227 is a standard order that contains 18 items. What is the indirect cost allocation for Job 227? Note: Round your answer to 2 decimals. c. Job 228 is a rush order that contains 2 items. What is the indirect cost allocation for Job 228? Note: Round your answer to 2 decimals. Answer

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Dole Foods Inc uses activity-based costing to calculate product costs. For each activity in the left column, match it to the appropriate activity base on the right. Order shipping [Choose] [Choose] Number of customer orders INumber of sales orders Number of purchasc orders Number of customcr rcttums Number of employces TChoosc Purchasing Invoice and collecting Customer rcturn procesSIng (Choose ]
Garrell Corporation is conducting a time-driven activity-based costing study in its Customer Support Department. The company has provided the following data to aid in that study: Time-driven activity rate (cost per unit of activity) Activity cost pool: Receiving Calls Resolving Issues Settling Disputes Cost Object Data: Number of calls received Number of issues resolved Number of disputes settled Customer P 31 17 1 $5.46 $8.58 $13.26 Customer Q 21 10 Required: Using time-driven activity-based costing, determine the total Customer Support Department cost assigned to cach customer.
MTI makes three types of lawn tractors: M3100, M4100, and M6100. In the past, it allocated overhead to products using machine-hours. Last year, the company produced 8,000 units of M3100, 17,500 units of M4100, and 10,000 units of M6100 and had the following revenues and costs: Sales revenue Direct costs Direct materials Direct labor Variable overhead Setting up machines Processing sales orders Warehousing Operating machines Shipping Contribution margin Plant administration Gross profit MTI Activity Setting up machines Processing sales orders Warehousing Operating machines. Income Statement M3100 $ 9,400,000 3,300,000 610,000 M4100 $ 15,700,000 Cost Driver Production runs 4, 800, 800 860, 000 M6100 $ 14,200,000 Sales orders received Units held in inventory Machine-hours 3,100,000 1,730, 000 MTI's controller has heard about activity-based costing and puts together an employee team to recommend cost allocation bases. The employee team recommends the following. M3100 9 170 90 6, 200 Total…
Assume a service company has implemented an activity-based costing system with five activities as shown below: Activity Cost Pool (Activity Measure) Customer deliveries (Number of deliveries) Manual order processing (Number of manual orders) Electronic order processing (Number of electronic orders) Line item picking (Number of line items picked) Other organization-sustaining costs (None) Total Cost Total Activity $ 400,000 $ 280,000 $ 150,000 $ 450,000 $ 300,000 8,000 deliveries 5,000 manual orders 15,000 electronic orders 375,000 line items The company serves numerous customers, two of which include Hospital A and Hospital B. The activity demands pertaining to these two customers are as follows: Activity Hospital A Hospital B Activity Measure Number of deliveries Number of manual orders Number of electronic orders Number of line items picked 8. 25 30 15 0. 115 250 How much total activity cost should be assigned to Hospital A for internal management purposes? Multiple Choice $785 <…
An allocation base: a. can be units of output if the company has a single product O b. is determined before the period begins. O c. All the given answers are correct. O d. can be direct labor cost e. is a measure used to assign manufacturing overhead costs to products and services PAGE NEXT PAGE IZ TWO Jump CQURSE OUTLINE_SPRING2021 ► tv MacBook Air
Assume a service company has implemented an activity-based costing system with five activities as shown below: Activity Cost Pool (Activity Measure) Total Cost Total Activity Customer deliveries (Number of deliveries) $ 400,000 8,000 deliveries Manual order processing (Number of manual orders) $ 280,000 5,000 manual orders Electronic order processing (Number of electronic orders) $ 150,000 15,000 electronic orders Line item picking (Number of line items picked) $ 450,000 375,000 line items Other organization-sustaining costs (None) $ 300,000 The company serves numerous customers, two of which include Hospital A and Hospital B. The activity demands pertaining to these two customers are as follows: Activity Measure Activity Hospital A Hospital B Number of deliveries 10 25 Number of manual orders 0 31 Number of electronic orders 15 0 Number of line items picked 120 250 How much cost would be assigned from the Manual Order Processing activity to…
Assume a service company has implemented an activity-based costing system with five activities as shown below: Activity Cost Pool (Activity Measure) Total Cost Total Activity Customer deliveries (Number of deliveries) $ 400,000 8,000 deliveries Manual order processing (Number of manual orders) $ 280,000 5,000 manual orders Electronic order processing (Number of electronic orders) $ 150,000 15,000 electronic orders Line item picking (Number of line items picked) $ 450,000 375,000 line items Other organization-sustaining costs (None) $ 300,000 The company serves numerous customers, two of which include Hospital A and Hospital B. The activity demands pertaining to these two customers are as follows: Activity Measure Activity Hospital A Hospital B Number of deliveries 10 25 Number of manual orders 0 30 Number of electronic orders 15 0 Number of line items picked 125 250 How much total activity cost should be assigned to Hospital A for internal…
Az-Zain Sdn Bhd uses the following activity rates from its activity-based costing to assign overhead costs to products. Activity Cost Pools Activity Rate Setting up batches RM86.50 per batch Assembling products RM4.63 per assembly hour Processing customer orders RM52.16 per customer order Data concerning two products appear below: Product J00A Product S06U Number of batches 34 43 Number of assembly hours 105 812 Number of customer orders 17 32 1. How much overhead cost would be assigned to Product J00A using the company's activity-based costing system? 2. How much overhead cost would be assigned to Product S06U using the company's activity-based costing system?
Problem 2 Milky Corporation has provided the following data from its activity-based costing accounting system: Activity Cost Pools Designing products Setting up batches Assembling products Total Cost P1,372,448 P33,300 P126,160 Total Activity 7,798 product design hours 740 batch set-ups 6,640 assembly hours The activity rate for the "designing products" activity cost pool is answer must be in nearest peso A The activity rate for the "setting up batches" activity cost pool is answer should be in nearest peso A The activity rate for the "assembling products" activity cost pool is answer must be in nearest peso A
Saved Help Sav CH 07 i Klumper Corporation is a diversified manufacturer of industrial goods. The company's activity-based costing system cont following six activity cost pools and activity rates: Activity Cost Pool Supporting direct labor Machine processing Machine setups Activity Rates $6 per direct labor-hour $ 4 per machine-hour $ 50 per setup $ 90 per order $ 14 per shipment $ 840 per product Production orders Shipments Product sustaining Activity data have been supplied for the following two products: Total Expected Activity K425 M67 Number of units produced per year Direct labor-hours 200 2,000 80 500 Machine-hours Machine setups Production orders 100 1,500 1 4 4 Shipments Product sustaining 1 10 1 Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system? DELL F3 prt sc home end F4 F5 F6
Vanvalkenburg, Inc., manufactures and sells two products: Product Q5 and Product JO. The company has an actvity-based costing system with the following activity cost pools, activity measures, and expected activity: Estimated Expected Activity Activity Overhead Activity Cost Pools Labor-related Measures Cost Product 05 Product J0 Total DLHS $191,748 70,536 295,592 3,000 300 4,300 2,800 5,800 Production orders Order size orders 500 800 MHs 4,500 8,800 $557,876 The activity rate for the Production Orders activity cost pool under activity-based costing is closest to: Multiple Cholce $63.40 per order S6874 per order S8817 per oroer 92 F AQI 61 pe here to search DELL 3.
nline Services v OS Ticket system My Dispense Academic Calendar My courses Activity-based costing (ABC) LO#5 Activity-based costing (ABC) is a costing model that identifies activities in an organization and assigns the cost of each activity resource to all products and services according to the actual consumption by each: it assigns more indirect costs (overhead) into direct costs. In this way an organization can precisely estimate the cost of its individual products and services for the purposes of identifying and eliminating those which are unprofitable and lowering the prices of those which are overpriced. In a business organization, the ABC methodology assigns an organization's resource costs through activities to the products and services provided to its customers. It is generally used as a tool for understanding product and customer cost and profitability. As such, ABC has predominantly been used to support strategic decisions such as pricing, outsourcing and identification and…