XYZ Corporation has provided the following data concerning its overhead costs for the coming year: Wages and salaries Depreciation Rent Total The company has an activity-based costing system with the following three activity cost pools and estimated activity for the coming year: Activity Cost Pool Assembly Order processing Other Wages and salaries Depreciation $ 420,000 160,000 180,000 $760,000 Not Rent Total Activity 40,000 labor-hours 700 orders The Other activity cost pool does not have a measure of activity; it is used to accumulate costs of idle capacity and organization-sustaining costs. The distribution of resource consumption across activity cost pools is given below: applicable Assembly 35% 15% 35% Activity Cost Pools Order Processing 30% 45% 30% The activity rate for the Order Processing activity cost pool is closest to: Other 35% 40% 35% Total 100% 100% 100%
XYZ Corporation has provided the following data concerning its overhead costs for the coming year: Wages and salaries Depreciation Rent Total The company has an activity-based costing system with the following three activity cost pools and estimated activity for the coming year: Activity Cost Pool Assembly Order processing Other Wages and salaries Depreciation $ 420,000 160,000 180,000 $760,000 Not Rent Total Activity 40,000 labor-hours 700 orders The Other activity cost pool does not have a measure of activity; it is used to accumulate costs of idle capacity and organization-sustaining costs. The distribution of resource consumption across activity cost pools is given below: applicable Assembly 35% 15% 35% Activity Cost Pools Order Processing 30% 45% 30% The activity rate for the Order Processing activity cost pool is closest to: Other 35% 40% 35% Total 100% 100% 100%
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter6: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 2E: Identify cost graphs The following cost graphs illustrate various types of cost behavior: For each...
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Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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