20.
Galante Kennel uses tenant-days as its measure of activity; ananimal housed in the kennel for one day is counted as onetenant-day. During May, Kennel budgeted for 4,600 tenant-days, butits actual level of activity was 4,580 tenant-days. Kennel hasprovided the following data concerning the formulas used in itsbudgeting and its actual results for May:
Data used in budgeting:
Fixedelement
per month Variableelement per tenant-day Revenue â $31.10 Wages andsalaries $3,600 $7.10 Food andsupplies 200 11.90 Facilityexpenses 8,600 4.10 Administrativeexpenses 8,400 0.50 Total expenses $20,800
$23.60
Actual results for May:
Revenue $108,380 Wages andsalaries $23,560 Food andsupplies $36,796 Facilityexpenses $19,310 Administrativeexpenses $9,152
The net operating income in the planning budget for May would beclosest to:
a. $19,562
b. $13,700
c. $19,468
d. $13,550
27.
Fogle Florist specializes in large floral bouquets for hotelsand other commercial spaces. The company has provided the followingdata concerning its annual overhead costs and its activity basedcosting system:
Overhead costs: Wages andsalaries $122,000 Other expenses 93,000 Total $215,000
Distribution of resource consumption: Activity Cost Pools Making
Bouquets Delivery Other Total Wages andsalaries 50% 35% 15% 100% Other expenses 30% 50% 20% 100%
The "Other" activity cost pool consists of the costs of idlecapacity and organization-sustaining costs.
The amount of activity for theyear is as follows:
Activity CostPool Activity Making bouquets 63,500bouquets Delivery 16,300deliveries
What would be the total overhead cost per delivery according tothe activity based costing system? In other words, what would bethe overall activity rate for the deliveries activity cost pool?(Round to the nearest whole cent.)
a. $5.04 per delivery
b. $5.47 per delivery
c. $6.33 per delivery
d. $3.76 per delivery
20.
Galante Kennel uses tenant-days as its measure of activity; ananimal housed in the kennel for one day is counted as onetenant-day. During May, Kennel budgeted for 4,600 tenant-days, butits actual level of activity was 4,580 tenant-days. Kennel hasprovided the following data concerning the formulas used in itsbudgeting and its actual results for May: |
Data used in budgeting:
Fixedelement per month | Variableelement per tenant-day | |
Revenue | â | $31.10 |
Wages andsalaries | $3,600 | $7.10 |
Food andsupplies | 200 | 11.90 |
Facilityexpenses | 8,600 | 4.10 |
Administrativeexpenses | 8,400 | 0.50 |
Total expenses | $20,800 | $23.60 |
Actual results for May:
Revenue | $108,380 |
Wages andsalaries | $23,560 |
Food andsupplies | $36,796 |
Facilityexpenses | $19,310 |
Administrativeexpenses | $9,152 |
The net operating income in the planning budget for May would beclosest to:
a. $19,562
b. $13,700
c. $19,468
d. $13,550
27.
Fogle Florist specializes in large floral bouquets for hotelsand other commercial spaces. The company has provided the followingdata concerning its annual overhead costs and its activity basedcosting system: |
Overhead costs: | |
Wages andsalaries | $122,000 |
Other expenses | 93,000 |
Total | $215,000 |
Distribution of resource consumption: | ||||
Activity Cost Pools | ||||
Making Bouquets | Delivery | Other | Total | |
Wages andsalaries | 50% | 35% | 15% | 100% |
Other expenses | 30% | 50% | 20% | 100% |
The "Other" activity cost pool consists of the costs of idlecapacity and organization-sustaining costs. |
The amount of activity for theyear is as follows: |
Activity CostPool | Activity |
Making bouquets | 63,500bouquets |
Delivery | 16,300deliveries |
What would be the total overhead cost per delivery according tothe activity based costing system? In other words, what would bethe overall activity rate for the deliveries activity cost pool?(Round to the nearest whole cent.) |
a. $5.04 per delivery
b. $5.47 per delivery
c. $6.33 per delivery
d. $3.76 per delivery