Panamint Systems Corporation is estimating activity costs associated with producing disk drives, tapes drives, and wire drives. The indirect labor can be traced to four separate activity pools. The budgeted activity cost and activity base data by product are provided below. Procurement Scheduling Materials handling Product development Production Activity Cost Activity Base $362,500 Number of purchase orders 244,700 Number of production orders 486,700 Number of moves 766,200 1,535,800 Machine hours Number of engineering changes Number of Number of Number Number of Engineering of Moves Changes 15 6 25 Purchase Orders Production Orders Disk drives 4,090 Tape drives 2,400 Wire drives 11,900 The activity-based cost for each disk drive unit is Oa. $665.88 Ob. $300.73 Oc. $208.11 Od. $19.71 270 225 760 1,240 780 3,500 Machine Hours 2,500 10,000 10,200 Number of Units 2,200 4,500 2,700

Panamint Systems Corporation is estimating activity costs associated with producing disk drives, tapes drives, and wire drives. The indirect labor can be traced to four separate activity pools. The budgeted activity cost and activity base data by product are provided below. Procurement Scheduling Materials handling Product development Production Activity Cost Activity Base $362,500 Number of purchase orders 244,700 Number of production orders 486,700 Number of moves 766,200 1,535,800 Machine hours Number of engineering changes Number of Number of Number Number of Engineering of Moves Changes 15 6 25 Purchase Orders Production Orders Disk drives 4,090 Tape drives 2,400 Wire drives 11,900 The activity-based cost for each disk drive unit is Oa. $665.88 Ob. $300.73 Oc. $208.11 Od. $19.71 270 225 760 1,240 780 3,500 Machine Hours 2,500 10,000 10,200 Number of Units 2,200 4,500 2,700

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 12E: Activity cost pools, activity rates, and product costs using activity-based costing Caldwell Home...

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Sanford, Inc., has developed value-added standards for four activities: purchasing parts, receiving parts, moving parts, and setting up equipment. The activities, the activity drivers, the standard and actual quantities, and the price standards for 20x1 are as follows: The actual prices paid per unit of each activity driver were equal to the standard prices. Required: 1. Prepare a cost report that lists the value-added, non-value-added, and actual costs for each activity. 2. Which activities are non-value-added? Explain why. Also, explain why value-added activities can have non-value-added costs.
Activity cost pools, activity rates, and product costs using activity-based costing Caldwell Home Appliances Inc. is estimating the activity cost associated with producing ovens and refrigerators. The indirect labor can be traced into four separate activity pools, based on time records provided by the employees. The budgeted activity cost and activity-base information are provided as follows: The estimated activity-base usage and unit information for two product lines was determined as follows: A. Determine the activity rate for each activity cost pool. B. Determine the activity-based cost per unit of each product.
Surratt Corp is projecting activity costs associated with producing disk drives, tapes drives, and wire drives. Indirect labor can be traced to five separate activity pools. The budgeted activity cost and activity base data by product are provided below. What is the activity rate for the procurement activity cost pool? Procurement Scheduling Materials handling Product development Production Activity Cost $ 370,000 250,000 500,000 730,000 1.500,000 Activity Base Number of purchase orders Number of production orders Number of moves Number of engineering changes Machine hours Number of Purchase Production Orders Number Number of Machine Engineering Hours Changes Number of Number of of Moves 1.400 Orders Units Disk drives 300 2,000 2,000 4,000 4,000 12,000 10 Tape drives Wire drives. 150 800 10 8,000 4,000 800 4,000 25 10,000 2,500
Panamint Systems Corporation is estimating activity costs associated with producing disk drives, tapes drives, and wire drives. The indirect labor can be traced to four separate activity pools. The budgeted activity cost and activity base data by product are provided below. Procurement Scheduling Materials handling Product development Production Disk drives Tape drives Wire drives Activity Cost $390,900 200,200 479,700 Number of moves Activity Base Number of purchase orders Number of production orders Number of Purchase Orders 4,160 2,100 12,900 770,600 Number of engineering changes 1,491,500 Machine hours Number of Number Production of Orders Moves 1,400 520 250 155 820 4,500 The activity rate for the procurement activity cost pool is Oa. $20.40 per purchase order Ob. $65.70 per purchase order Oc. $319.10 per purchase order Od. $163.43 per purchase order Number of Engineering Changes 14 4 23 Machine Hours 1,700 9,800 11,200 Number of Units 1,800 4,400 2,300
Panamint Systems Corporation is estimating activity costs associated with producing disk drives, tapes drives, and wire drives. The indirect labor can be traced to four separate activity pools. The budgeted activity cost and activity base data by product are provided below. Procurement Scheduling Materials handling Product development Production Disk drives Tape drives Wire drives Activity Cost $378,400 221,900 402,900 770,700 Number of engineering changes 1,402,800 Machine hours Number of Purchase Orders Activity Base Number of purchase orders Number of production orders Number of moves 4,160 2,100 11,100 Production Orders Number of Number of Moves 250 175 1,200 540 860 4,300 The activity rate for the materials handling cost pool is Oa. $63.76 per move Ob. $21.8 per move Oc. $172.68 per move Od. $66.71 per move Number of Engineering Machine Changes Hours 15 2,500 5 9,200 10,300 27 Number of Units 1,600 4,300 2,000
Panamint Systems Corporation is estimating activity costs associated with producing disk drives, tapes drives, and wire drives. The indirect labor can be traced to five separate activity pools. The budgeted activity cost and activity base data by product are as follows: Procurement Scheduling Materials handling Product development Production Disk drives Tape drives Wire drives Activity Cost $379,200 245,800 402,900 728,700 1,528,900 Number of Purchase Orders 3,890 1,700 13,000 Activity Base Number of purchase orders Number of production orders Number of moves Number of engineering changes Machine hours c. $148.42 per machine hour O d. $20.4 per machine hour Number of Number Number of of Moves Production Orders 280 155 870 1,330 500 3,600 Engineering Changes 13 3 20 Machine Hours 1,500 8,400 10,700 The activity rate (rounded to the nearest cent) for the production cost pool is O a. $74.2 per machine hour O b. $74.22 per machine hour O Number of Units 2,100 3,900 3,000
Panamint Systems Corporation is estimating activity costs associated with producing disk drives, tapes drives, and wire drives. The indirect labor can be traced to four separate activity pools. The budgeted activity cost and activity base data by product are provided below. Activity Cost Activity Base Procurement $309,800 Number of purchase orders Scheduling 207,900 Number of production orders Materials handling 427,200 Number of moves Product development 787,800 Number of engineering changes Production 1,508,300 Machine hours Number ofPurchaseOrders Number ofProductionOrders NumberofMoves Number ofEngineeringChanges MachineHours NumberofUnits Disk drives 3,930 330 1,340 11 1,800 1,800 Tape drives 2,400 165 710 4 8,100 3,600 Wire drives 13,000 700 4,400 20 10,400 2,100 The activity-based cost for each disk drive unit is a.$878.32 b.$16.03 c.$328.05 d.$223.91
Panamint Systems Corporation is estimating activity costs associated with producing disk drives, tapes drives, and wire drives. The indirect labor can be traced to four separate activity pools. The budgeted activity cost and activity base data by product are provided below. Activity Cost Activity Base Procurement $364,200 Number of purchase orders Scheduling 243,400 Number of production orders Materials handling 417,300 Number of moves Product development 773,900 Number of engineering changes Production 1,428,300 Machine hours Number of Number of Number Number of Number Purchase Production of Engineering Machine of Orders Orders Moves Changes Hours Units Disk drives 4,120 270 1,500 11 2,200 2,100 Tape drives 2,400 245 500 7 8,500 3,500 Wire drives 11,500 790 3,500 21 10,700 2,400 The activity-based cost for each tape drive unit is Oa. $291.69 Ob. $239.52 Oc. $740.06 Od. $20.21
Panamint Systems Corporation is estimating activity costs associated with producing disk drives, tapes drives, and wire drives. The indirect labor can be traced to four separate activity pools. The budgeted activity cost and activity base data by product are provided below. Activity Cost Activity Base Procurement $387,600 Number of purchase orders Scheduling 220,800 Number of production orders Materials handling 499,900 Number of moves Product development 776,600 Number of engineering changes Production 1,421,700 Machine hours Number ofPurchaseOrders Number of ProductionOrders NumberofMoves Number ofEngineeringChanges MachineHours NumberofUnits Disk drives 4,030 260 1,330 13 2,200 2,300 Tape drives 1,600 245 600 3 9,200 4,400 Wire drives 11,200 870 4,200 29 11,500 3,000 The activity-based cost for each wire drive unit is a.$23.03 b.$262.59 c.$651.52 d.$170.01
Panamint Systems Corporation is estimating activity costs associated with producing disk drives, tapes drives, and wire drives. The indirect labor can be traced to four separate activity pools. The budgeted activity cost and activity base data by product are provided below. Activity Cost Activity Base Procurement $339,200 Number of purchase orders Scheduling 204,100 Number of production orders Materials handling 459,900 Number of moves Product development 775,100 Number of engineering changes Production 1,593,800 Machine hours Number ofPurchaseOrders Number ofProductionOrders NumberofMoves Number ofEngineeringChanges MachineHours NumberofUnits Disk drives 4,050 260 1,370 10 2,300 2,500 Tape drives 1,600 125 600 3 8,700 4,200 Wire drives 12,000 780 3,700 30 10,600 2,000 The activity rate for the scheduling activity cost pool is
Panamint Systems Corporation is estimating activity costs associated with producing disk drives, tapes drives, and wire drives. The indirect labor can be traced to four separate activity pools. The budgeted activity cost and activity base data by product are provided below. Activity Cost Activity Base Procurement $348,600 Number of purchase orders Scheduling 200,100 Number of production orders Materials handling 471,600 Number of moves Product development 741,200 Number of engineering changes Production 1,511,600 Machine hours Number of Number of Number Number of Number Purchase Production of Engineering Machine of Orders Orders Moves Changes Hours Units Disk drives 3,910 380 1,430 10 1,900 2,400 Tape drives 1,600 235 570 8,000 3,700 Wire drives 11,300 880 4,200 28 11,500 2,300 The activity rate for the procurement activity cost pool is Oa. $133.85 per purchase order Ob. $70.64 per purchase order Oc. S20.74 per purchase order Od. $233.18 per purchase order
Panamint Systems Corporation is estimating activity costs associated with producing disk drives, tapes drives, and wire drives. The indirect labor can be traced to four separate activity pools. The budgeted activity cost and activity base data by product are provided below. Activity Cost Activity Base Procurement $348,600 Number of purchase orders Scheduling 200,100 Number of production orders Materials handling 471,600 Number of moves Product development 741,200 Number of engineering changes Production 1,511,600 Machine hours Number of Number of Number Number of Number Purchase Production of Engineering Machine of Orders Orders Moves Changes Hours Units Disk drives 3,910 380 1,430 10 1,900 2,400 Tape drives 1,600 235 570 8,000 3,700 Wire drives 11,300 880 4,200 28 11,500 2,300 The activity rate for the procurement activity cost pool is Oa. $133.85 per purchase order Ob. $70.64 per purchase order Oc. S20.74 per purchase order Od. S233.18 per purchase order Previous Next Submit Test for…