ACC 312 Lecture Notes - Lecture 5: Kaizen, Cost Driver

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viridianraven17

18 Dec 2017

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Volume-based (throughput-based) costing systems: a product-costing system in which costs are assigned to products on the basis of a single activity base related to volume (direct-labor hours or machine hours) Activity-based costing (abc) system: a two-stage procedure used to assign overhead costs to products or services produced. In the first stage, significant activities are identified, and overhead costs are. Activity cost pool: a grouping of overhead costs assigned to various similar activities. Cost hierarchy: the classification of activities into levels identified in an activity-based costing system. Unit-level activity: an activity that must be done for each unit of production. Batch-level activity: an activity that must be accomplished for each batch of. Facility-level (general operations) activity: an activity that is required for an. Consumption ratio: the proportion of an activity consumed by a particular product. Cost driver: a characteristic of an activity or event that results in the incurrence of costs by that activity or event.

Related Questions

Lysiak Corporation uses an activity based costing system to assign overhead costs to products. In the first stage, two overhead costs--equipment depreciation and supervisory expense-are allocated to three activity cost pools--Machining, Order Filling, and Other--based on resource consumption. Data to perform these allocations appear below: Overhead costs: Equipment depreciation $ 47,000 Supervisory expense $ 6,000 Distribution of Resource Consumption Across Activity Cost Pools: Activity Cost Pools Machining Order Filling Other Equipment depreciation 0.60 0.10 0.30 Supervisory expense 0.60 0.20 0.20 In the second stage, Machining costs are assigned to products using machine-hours (MHs) and Order Filling costs are assigned to products using the number of orders. The costs in the Other activity cost pool are not assigned to products. Activity data for the company's two products follow: Activity: MHs (Machining) Orders (Order Filling) Product C9 6,900 200 Product U0 3,100 800 Total 10,000 1,000 What is the overhead cost assigned to Product C9 under activity-based costing?

$21,942
$23,122
$26,500
$1,180

violetgoat484

Deemer Corporation has an activity-based costing system withthree activity cost pools--Processing, Supervising, and Other. Inthe first stage allocations, costs in the two overhead accounts,equipment expense and indirect labor, are allocated to the threeactivity cost pools based on resource consumption. Data used in thefirst stage allocations follow:

Overhead costs:
Equipment expense	$	107,000
Indirect labor	$	12,300

Distribution of Resource Consumption Across Activity CostPools:

	Activity Cost Pools
	Processing	Supervising	Other
Equipment expense	0.30	0.50	0.20
Indirect labor	0.30	0.40	0.30

Processing costs are assigned to products using machine-hours(MHs) and Supervising costs are assigned to products using thenumber of batches. The costs in the Other activity cost pool arenot assigned to products. Activity data for the company's twoproducts follow:

Activity:

	MHs(Processing)	Batches(Supervising)
Product F6	13,600	780
Product X0	1,670	590
Total	15,270	1,370

What is the overhead cost assigned to Product X0 underactivity-based costing?

Multiple Choice

$3,907.80

$29,065.00

$25,157.60

$39,043.00

jadesquirrel919

Capizzi Corporation has an activity-based costing system with three activity cost pools-Machining, Order Filling, and Other. In the first stage allocations, costs in the two overhead accounts, equipment depreciation and supervisory expense, are allocated to three activity cost pools based on resource consumption. Data used in the first stage allocations follow:

Overhead costs:
Equipment depreciation	$84,900
Supervisory expense	$9,500

Distribution of Resource Consumption Across Activity Cost Pools:
	Activity Cost Pools
	Machining	Order Filling	Other
Equipment depreciation	0.60	0.20	0.20
Supervisory expense	0.60	0.10	0.30

Machining costs are assigned to products using machine-hours (MHs) and Order Filling costs are assigned to products using the number of orders. The costs in the Other activity cost pool are not assigned to products. Activity data for the company's two products follow:

Activity:
	MHs (Machining)	Batches (Order Filling)
Product Y7	1,700	1,260
Product V2	9,960	1,710
Total	11,660	2,970

What is the overhead cost assigned to Product V2 under activity-based costing? (Round your intermediate calculations to 2 decimal places and final answer to nearest whole dollar amount.)

$58,734

$73,620

$10,328

$48,406

maroonllama551

ACC 312 Lecture Notes - Lecture 5: Kaizen, Cost Driver

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