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
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
Related questions
#10
Meester Corporation has an activity-based costing system withthree activity cost pools--Machining, Order Filling, and Other. Inthe first stage allocations, costs in the two overhead accounts,equipment depreciation and supervisory expense, are allocated tothree activity cost pools based on resource consumption. Data usedin the first stage allocations follow:
| Overhead costs: | |||||||
| Equipment depreciation | $ | 96,000 | |||||
| Supervisory expense | $ | 8,000 | |||||
Distribution of Resource Consumption Across Activity CostPools:
| Activity Cost Pools | |||||
| Machining | Order Filling | Other | |||
| Equipment depreciation | 0.30 | 0.10 | 0.60 | ||
| 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 thenumber of orders. The costs in the Other activity cost pool are notassigned to products. Activity data for the company's two productsfollow:
Activity:
| MHs(Machining) | Orders (OrderFilling) | |
| Product M0 | 4,500 | 400 |
| Product H2 | 5,500 | 600 |
| Total | 10,000 | 1,000 |
The activity rate for the Order Filling activity cost pool underactivity-based costing is closest to:
$104.00 per order
$8.00 per order
$10.40 per order
$13.33 per order
#11
Stut Corporation, a retailer, plans to sell 28,000 units ofProduct X during the month of August. If the company has 6,000units on hand at the start of the month, and plans to have 9,000units on hand at the end of the month, how many units of Product Xmust be purchased from the supplier during the month?
25,000
28,000
31,000
37,000
#17
Marty's Merchandise has budgeted sales as follows for the secondquarter of the year:
| April | $ | 30,000 |
| May | $ | 60,000 |
| June | $ | 50,000 |
Cost of goods sold is equal to 70% of sales. The company wantsto maintain a monthly ending inventory equal to 120% of the cost ofgoods sold for the following month. The inventory on March 31 wasbelow this target and was only $22,000. The company is nowpreparing a Merchandise Purchases Budget for April, May, andJune.
The desired beginning inventory for June is:
$35,000
$42,000
$50,000
$38,000
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
#6
Younan Corporation manufactures two products: Product E47F andProduct D02M. The company is considering implementing anactivity-based costing (ABC) system that allocates itsmanufacturing overhead to four cost pools. The following additionalinformation is available for the company as a whole and forProducts E47F and D02M.
| Activity CostPool | ActivityMeasure | Total Cost | Total Activity | ||
| Machining | Machine-hours | $ | 165,000 | 11,000 | MHs |
| Machine setups | Number of setups | $ | 150,000 | 250 | setups |
| Product design | Number of products | $ | 70,000 | 2 | products |
| Order size | Direct labor-hours | $ | 310,000 | 10,000 | DLHs |
| ActivityMeasure | ProductE47F | ProductD02M |
| Machine-hours | 5,000 | 6,000 |
| Number of setups | 200 | 50 |
| Number of products | 1 | 1 |
| Direct labor-hours | 4,000 | 6,000 |
Using the ABC system, the percentage of the total overhead costthat is assigned to Product D02M is closest to:
rev: 03_17_2018_QC_CS-119201
22.30%
49.06%
26.76%
50.00%
#7
Tomasini Corporation has provided the following data from itsactivity-based costing accounting system:
| Supervisory wages | $ | 660,000 |
| Factory supplies | $ | 280,000 |
Distribution of Resource Consumption across Activity CostPools:
| Activity Cost Pools | BatchProcessing | Unit Processing | Other | Total | |
| Supervisory wages | 20% | 70% | 10% | 100% | |
| Factory supplies | 45% | 35% | 20% | 100% | |
The "Other" activity cost pool consists of the costs of idlecapacity and organization-sustaining costs that are not assigned toproducts.
How much supervisory wages and factory supplies cost would NOTbe assigned to products using the activity-based costingsystem?
Garrison 16e Rechecks 2018-07-24
$280,000
$660,000
$122,000
$0
#9
Addleman 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 | $ | 73,000 | |||||
| Indirect labor | $ | 1,000 | |||||
Distribution of Resource Consumption Across Activity CostPools:
| Activity Cost Pools | |||||
| Processing | Supervising | Other | |||
| Equipment expense | 0.20 | 0.10 | 0.70 | ||
| Indirect labor | 0.20 | 0.20 | 0.60 | ||
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 W3 | 7,600 | 100 |
| Product H3 | 2,400 | 900 |
| Total | 10,000 | 1,000 |
Finally, the costs of Processing and Supervising are combinedwith the following sales and direct cost data to determine productmargins.
Sales and Direct Cost Data:
| Product W3 | Product H3 | |||||||||
| Sales (total) | $ | 159,500 | $ | 154,100 | ||||||
| Direct materials (total) | $ | 66,300 | $ | 55,300 | ||||||
| Direct labor (total) | $ | 77,800 | $ | 84,100 | ||||||
The activity rate for the Supervising activity cost pool underactivity-based costing is closest to:
Garrison 16e Rechecks 2018-07-24
$7.50 per batch
$74.00 per batch
$1.11 per batch
$1.00 per batch
