None Exercise 7-12 (Static) Activity Measures [LO7-1]Various activities at Ming Corporation, a manufacturing company, are listed below. Each activity has been classified as a unit-level,batch-level, product-level, or customer-level activity.Required:Complete the table by providing an example of an activity measure for each activity.Activitya. Direct labor workers assemble a product.b. Products are designed by engineers.c. Equipment is set up.d. Machines are used to shape and cut materials.e. Monthly bills are sent out to regular customers.Activity ClassificationUnitProductBatchUnitExamples of Activity Measuresf. Materials are moved from the receiving dock to production lines.g. All completed units are inspected for defects.CustomerBatchUnit

The table you mentioned is tied to an activity-based costing system (ABC). ABC assists businesses in…

Answered: Exercise 7-12 (Static) Activity…

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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Activity Measures Various activities at Ming Corporation, a manufacturing company, are listed below. Each activity has been classified as a unit-level, batch-level, product-level, or customer-level activity. Required: Complete the table by providing an example of an activity measure for each activity.
Activity Levels and Cost Drivers Shroeder Machine Shop has the following activities:a. Machine operationb. Machine setupc. Production schedulingd. Materials receivinge. Research and developmentf. Machine maintenanceg. Product designh. Parts administrationi. Final inspection of a sample of productsj. Materials handlingRequired1. Classify each of the activities as a unit-level, batch-level, product-level, or facility-level activity.2. Identify a potential cost driver for each activity in requirement 1.
3-34 Activity Levels and Cost Drivers Tartan Manufacturing Company produces four lines of high-quality lighting fixtures in a single manufacturing plant. Products are built to specific customer specifica- tions. All products are made-to-order. Management of the plant lists the following as the key activities at the plant: a. Product design b. Production scheduling c. Cost of purchasing department d. Receipt and inspection of materials e. Machine set-ups f. Product inspection, done for each product g. Plant security h. Customer credit check i. Machine operation j. Machine maintenance Required Identify a cost object and a cost driver for each activity.
Match each of the terms/phrases numbered 1 through 5 with the best definition a through e. 1. Cost accounting system 2. Target cost 3. Job 4. Process operation 5. Job order production a. Production activities for a custom product. b. Production activities for a special order. c. A system that records manufacturing costs. d. The expected selling price of a job minus its desired profit. e. Mass production in a continuous flow of steps.
PR 18-4A Activity-Based Product Costing Obj. 4 Mello Manufacturing Company is a diversified manufacturer that manufactures three products (Alpha, Beta, and Omega) in a continuous production process. Senior management has asked the controller to conduct an activity-based costing study. The controller identified the amount of factory overhead required by the critical activities of the organization as follows: Activity Production Setup Materials handling Inspection Product engineering The activity bases identified for each activity are as follows: Activity Production Alpha Beta 3. Setup Materials handling Inspection Product engineering Total Omega Total Activity Base Machine hours Number of setups Number of parts The activity-base usage quantities and units produced for the three products were determined from corporate records and are as follows: Number of inspection hours Number of engineering hours Machine Hours 1,440 1,080 720 3,240 Number of Setups Activity Cost Pool $259,200 55,000…
Activity Levels and Cost Drivers Shroeder Machine Shop has the following activities: Machine operation Machine setup Production scheduling Materials receiving Research and development Machine maintenance Product design Parts administration Final inspection of a sample of products Materials handling Required Classify each of the activities as a unit-level, batch-level, product-level, or facility-level activity. Identify a potential cost driver for each activity in requirement 1.
A manufacturer reports three activities: assembling components into products; product design; and sales order processing. Determine whether each of the following cost drivers relates to assembly, design, or order processing. Cost Driver 1. Direct labor hours to assemble components 2. Number of design changes 3. Number of components assembled 4. Number of design hours 5. Number of shipments made 6. Number of sales orders processed Activity
3. Draw a Work-Breakdown Structure up to level 3 in the following format: Activity 1. (main activity) 1.1 (sub-activity) 1.1.1 (subsub-activity) 1.1.2 1.1.3 2. 2.1 2.1.1 etc. Total 1.2 (etc.) Total GRAND TOTALS: Duration (Start/Finish dates) 1 week 2 days 1 day 2 days 2 weeks 3 weeks 1 week Budget/Cost Responsible person/unit 10 000 4 000 1 000 5 000 5 000 R15 000 R20 000 Total project duration=4 weeks (per example above) Total project budget = R35 000 (per example above) Performance indicator(s)
8 Identify the correct order of traditional approach method? I. Absorption of production departments' overhead by the end products. II. Allocation and apportionment of overhead to various production departments and service departments. III. Reapportionment of service departments' overhead to production departments a. I,II and III b. II,III and I c. II,I and III d. III,II and I
Case 2: Allocated Costs A manager of the production department of a manufacturing company is made responsible for the costs of theirdepartment. These costs include directly attributable overhead items such as the costs of labor and materialsconsumed in the department. The overhead costs also included an allocation of costs from other cost centers,such as rent, depreciation of machinery equipment within the production department, utilities, and repairs andmaintenance of equipment. Required:Explain whether the production manager should be held accountable for each allocated cost as follows: a. Rentb. Depreciationc. Utilitiesd. Repairs and maintenance
Please use Table 1 to ANSWER this question. COVID Co. produces two different products (Product A and Product X) using two different activities: Machining, which uses machine hours as an activity driver, and Inspection, which uses number of batches as an activity driver. The cost of Machining is $1,000,000, while the cost of Inspection is $2,700,000. What is the activity rate for Inspection? Select one: O b. None of the given ANSWER c. 52,000 per batch O d.545,000 per batch Oa.51.500 per batch
Case N ° 3The industrial company Arica S.A. It treats a raw material A and a raw material B in Workshop 1. At the exit of this workshop a semi-finished or intermediate product is obtained that goes to the warehouse. This semi-finished product is treated again in Workshop 2, and when it leaves the finished products X and Y that enter the warehouse are produced. Regarding its economic organization, the company is divided into the following activity centers (two auxiliary and four main), which allow control over indirect costs: Administration, Energy, Purchasing, Workshop 1, Workshop 2 and Sales. I. Data common to general accounting and cost accounting: The data that constitute the starting situation of Cost Accounting are: a) Opening stocks: - Raw material A (12,000 kg): ¢ 25,200- Raw material B (36,000 kg): ¢ 95,400- Semi-finished product: nothing;- Product X (2,860 units): ¢ 33,088- Product Y (45 units): ¢ 950 b) Purchases of the period: - Raw material A: 24,000 kg at ¢ 2.10 per kg;-…

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