A company uses activity-based costing to determine the costs of its three products: A, B, and C. The budgeted cost and activity for each of the company's three activity cost pools areshown in the following table:Budgeted ActivityActivityBudgeted Cost Activity Cost DriverProduct AProduct BProduct C$ 70,000$ 45,000$ 82,000Square feetUnits inspectedActivity 16,0009,00020,000Activity 2Activity 37,00015,0008,000Setups2,5001,0001,625What are the activity rates for the three activities under activity-based costing?Multiple Choice(1) $2.00 per square foot; (2) $3.00 per unit; (3) $3.50 per setup.(1) $3.50 per square foot; (2) $1.50 per unit; (3) $32,80 per setup.(1) $3.50 per square foot; (2) $3.00 per unit; (3) $16.00 per setup.(1) $2.00 per square foot: (2) $1.50 per unit; (3) $16.00 per setup.

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Description: A company uses activity-based costing to determine the costs of its three products: A, B, and C. The budgeted cost and activity for each of the company's three activity cost pools areshown in the following table:Budgeted ActivityActivityBudgeted Cos

Formula: Activity rate = Budgeted cost / Budgeted activity drivers

Business

Accounting

A company uses activity-based costing to determine the costs of its three products: A, B, and C. The budgeted cost and activity for each of the company's three activity cost pools are shown in the following table: Budgeted Activity Product B Product C Activity Activity 1 Activity 2 Activity 3 Budgeted Cost Activity Cost Driver Product A $ 70,000 $ 45,000 $ 82,000 Square feet Units inspected 6,000 9,000 20,000 8,000 1,625 7,000 15,000 Setups 2,500 1,000 What are the activity rates for the three activities under activity-based costing? Multiple Choice me200 cer souare foot: (2IS3.00 unit: (2) sa 50 rsetun

A company uses activity-based costing to determine the costs of its three products: A, B, and C. The budgeted cost and activity for each of the company's three activity cost pools are shown in the following table: Budgeted Activity Product B Product C Activity Activity 1 Activity 2 Activity 3 Budgeted Cost Activity Cost Driver Product A $ 70,000 $ 45,000 $ 82,000 Square feet Units inspected 6,000 9,000 20,000 8,000 1,625 7,000 15,000 Setups 2,500 1,000 What are the activity rates for the three activities under activity-based costing? Multiple Choice me200 cer souare foot: (2IS3.00 unit: (2) sa 50 rsetun

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 11E: Lonsdale Inc. manufactures entry and dining room lighting fixtures. Five activities are used in...

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A company uses activity-based costing to determine the costs of its three products: A, B, and C. The budgeted cost and activity for each of the company's three activity cost pools are shown in the following table: Budgeted Activity Activity Cost Pool Activity 1 Activity 2 Activity 3 Budgeted Cost Product A Product B 6,300 7,300 2,800 Product C $73,000 $48,000 $88,000 20,300 8,300 1,925 9,300 15,300 1,300 How much overhead will be assigned to Product B using activity-based costing?
A company uses activity-based costing to determine the costs of its three products: A, B, and C. The budgeted cost and activity for each of the company's three activity cost pools are shown in the following table: Budgeted Activity Activity Cost Pool Budgeted Cost Product A Product B Product C Activity 1 $ 87,000 7,700 10,700 21,700 Activity 2 $ 62,000 8,700 16,700 9,700 Activity 3 $ 116,000 4,200 2,700 3,325 How much overhead will be assigned to Product B using activity-based costing?
A company uses activity-based costing to determine the costs of its three products: A, B, and C. The budgeted cost and activity for each of the company's three activity cost pools are shown in the following table: Budgeted Activity Budgeted Activity Cost Pool Cost Product A Product B Product C Activity 1 $70,000 6,000 9,000 Activity 2 $45,000 7,000 15,000 Activity 3 $82,000 2,500 1,000 What are the activity rates for the three activities under activity based costing? O (1) $2.00; (2) $3.00; (3) $3.50. O (1) $3.50; (2) $1.50; (3) $32,80. O (1) $3.50; (2) $3.00; (3) $16.00. O (1) $2.00; (2) $1.50; (3) $16.00. O (1) $2.00; (2) $1.50; (3) $32.80. Question 9 F2 F7 -0- 2 F3 O+ # 3 F4 BJ LA $ 4 F5 N F6 % 5 6 20,000 8,000 1,625 F8 $ & 7 F9
A company uses activity-based costing to determine the costs of its three products: A, B, and C. The budgeted cost and activity for each of the company's three activity cost pools are shown in the following table: BUDGETED ACTIVITY Budgeted Cost Product A $70,000 $45,000 $82,000 Activity Cost Pool Activity 1 Activity 2 Activity 3 How much overhead will be assigned to Product B using activity-based costing? Product B 9,000 15,000 1,000 6,000 7,000 2,500 Product C 20,000 8,000 1,625
kes Tarnish Industries produces miniature models of farm equipment. These collectibles are in great demand. It takes two operations, molding and finishing. to complete the miniatures. Next year's expected activities are shown in the following table: Direct labor hours Machine hours Multiple Choice Tarnish Industries uses departmental overhead rates and is planning on a $5.30 per direct labor hour overhead rate for the Finishing department. Compute the budgeted manufacturing overhead cost for the Finishing department given the information shown in the table. $461,300 $914.250 $583.000 $495,550 Molding 87,000 DLH 110,000 MH Finishing 172,500 DLH 93,500 MH Multiple Choice Zoe Company reports the following for its overhead cost for the year. Activity Budgeted Cost Budgeted Activity Usage Engineering support $101,500 Electricity 195,000 70 design changes 3,900 machine hours 400 setups Setup 260,000 Compute the activity rate for engineering support using activity-based costing. $1,450 per…
A company uses activity-based costing to determine the costs of its three products: A, B, and C. The budgeted cost and activity for each of the company's three activity cost pools are shown in the following table: Activity Cost Pool Budgeted Cost $70,000 $45,000 $82,000 Product A Budgeted Activity Product B 9,000 15,000 1,000 Product C Activity 1 6,000 Activity 2 7,000 Activity 3 2,500 Which of the following statements is true regarding this company's activity rates? 20,000 8,000 1,625 Seleccione una: O The activity rate under the activity-based costing system for Activity 2 is $1.50. O The activity rate under the activity-based costing system for Activity 2 is $19.50. O The activity rate under the activity-based costing system for Activity 2 is $2.00. O The activity rate under the activity-based costing system for Activity 2 is $16.00. O The activity rate under the activity-based costing system for Activity 2 is $2.81.
Ayala Inc. has conducted the following analysis related to its product lines, using a traditional costing system (volume-based) and an activity-based costing system. Both the traditional and the activity-based costing systems include direct materials and direct labor costs. Products Product 540X Product 137Y Product 2495 Sales Revenue $208,000 155,000 92.000 Total Costs Traditional $54,000 48,000 23.000 ABC $49,000 30,000 46,000
The pool rate is defined as the cost per unit of the cost driver for a particular activity cost pool. Group of answer choices True False Rocket Products manufactures three types of remote-control devices: Economy, Standard, and Deluxe. The company, which uses activity-based costing, has identified five activities (and related cost drivers). Each activity, its budgeted cost, and related cost driver is identified below. Activity Cost Cost Driver Material handling $ 225,000 Number of parts Material insertion 2,475,000 Number of parts Automated machinery 840,000 Machine hours Finishing 170,000 Direct labor hours Packaging 170,000 Orders shipped Total $ 3,880,000 The following information pertains to the three product lines for next year: Economy Standard Deluxe Units to be produced 10,000 5,000 2,000 Orders to be shipped 1,000 500 200 Number of parts per unit 10 15 25 Machine…
A company has two products: A and B. It uses activity-based costing and has prepared the following analysis showing budgeted cost and activity for each of its three activity cost pools: Activity Cost Pool Budgeted Activity Product A Product B Activity 1 Budgeted Cost $ 99,000 $ 74,000 4,200 4,000 Activity 2 5,700 6,700 Activity 3 $117,000 3,700 6,450 Annual production and sales level of Product A is 35,500 units, and the annual production and sales level of Product B is 70,750 units. What is the approximate overhead cost per unit of Product B under activity-based costing? Multiple Choice $3.59 $2.30
A company has two products: A and B. It uses activity-based costing and has prepared the following analysis showing budgeted cost and activity for each of its three activity cost pools: Budgeted Activity Product A Product B Activity Cost Pool Activity 1 Activity 2 Activity 3 Budgeted Cost $106,000 4,900 4,700 $ 81,000 6,400 7,400 $131,000 4,400 7,150 Annual production and sales level of Product A is 36,200 units, and the annual production and sales level of Product B is 71,450 units. What is the approximate overhead cost per unit of Product A under activity-based costing? Multiple Choice $1.41 O $3.91 $11.04 $2.47
Troglodyte University uses activity-based costing to assign indirect costs to academic departments, using three activities. The activity base, budgeted activity cost, and estimated activity-base usage for each activity are identified as follows: Activity Activity Base BudgetedActivity Cost Activity-BaseUsageFacilities Square feet $800,000 80,000 square feetInstruction Number of course sections 1,200,000 600 sectionsStudent services Number of students 290,000 2,500 studentsThe activity-base usage associated with the Archaeology and Geology departments is as follows:Department Facilities Instruction Student ServicesArchaeology 8,000 square feet 8 sections 150 studentsGeology 5,200 square feet 15 sections 200 studentsa. Determine the activity rate for each activity.Activity Activity RateFacilities $ per sq. ft.Instruction $ per section
Required information Davis Company uses an activity-based costing system in which there are three activity cost pools. The company has provided the following data concerning its costs and its activity-based costing system: Costs: Manufacturing overhead Selling and administrative expenses Total Distribution of Resource Consumption: Manufacturing overhead Selling and administrative expenses Order Size Multiple Choice $180.000 35% 50% $255.000 Activity Cost Pools Customer Other Support 55% 30% 10% 20% $400,000 200,000 $600,000 Total The "Other activity cost pool consists of the costs of idle capacity and organization-sustaining costs. You have been asked to complete the first-stage allocation of the costs to the activity cost pools 100% How much cost, in total, would be allocated in the first-stage allocation to the Customer Support activity cost pool? 100%