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
45.
Ollivier 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: Equipmentexpense $73,000 Indirect labor $6,900
Distribution of Resource Consumption Across Activity
Cost Pools: Activity Cost Pools
Processing Supervising Other Equipmentexpense 0.40 0.40 0.20 Indirect labor 0.40 0.50 0.10
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 C4 10,900 920 Product L7 1,780
1,430
Total 12,680
2,350
What is the overhead cost assigned to Product L7 underactivity-based costing? (Round your intermediatecalculations to 2 decimal places and your final answer to nearestwhole dollar.)
a. $24,348
b. $4,486
c. $34,326
d. $19,863
46.
HarrisCorporation produces a single product. Last year, Harrismanufactured 26,030 units and sold 20,700 units. Production costsfor the year were as follows:
Fixed manufacturingoverhead $494,570 Variablemanufacturing overhead $210,843 Direct labor $143,165 Directmaterials $192,622
Sales were $983,250, for the year, variable selling andadministrative expenses were $120,060, and fixed selling andadministrative expenses were $161,386. There was no beginninginventory. Assume that direct labor is a variable cost.
The contribution margin per unit would be: (Do not roundintermediate calculations.)
a. $21.80 per unit
b. $26.50 per unit
c. $16.20 per unit
d. $20.70 per unit
Important note: I am aware that the rules are one question askedper question. I do not expect anyone to answer more than one, butam hopeful and optimistic as these are mutiple choice. Many timespeople have obliged me. If you want to only anwser one, or two, orall of them: Please do! If you answer only one, thats fine aswell,but please do not...DO NOT remind me of the rule, or I will give anegative rating. I love you all, and appreiciate the help even ifyou chose to only answer one, but I do not appreicate condescendingremarks. Thank you, Cheers!
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
45.
Ollivier 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: | |
| Equipmentexpense | $73,000 |
| Indirect labor | $6,900 |
| Distribution of Resource Consumption Across Activity Cost Pools: | |||
Activity Cost Pools | |||
| Processing | Supervising | Other | |
| Equipmentexpense | 0.40 | 0.40 | 0.20 |
| Indirect labor | 0.40 | 0.50 | 0.10 |
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 C4 | 10,900 | 920 |
| Product L7 | 1,780 | 1,430 |
| Total | 12,680 | 2,350 |
What is the overhead cost assigned to Product L7 underactivity-based costing? (Round your intermediatecalculations to 2 decimal places and your final answer to nearestwhole dollar.) |
a. $24,348
b. $4,486
c. $34,326
d. $19,863
46.
HarrisCorporation produces a single product. Last year, Harrismanufactured 26,030 units and sold 20,700 units. Production costsfor the year were as follows: |
| Fixed manufacturingoverhead | $494,570 |
| Variablemanufacturing overhead | $210,843 |
| Direct labor | $143,165 |
| Directmaterials | $192,622 |
Sales were $983,250, for the year, variable selling andadministrative expenses were $120,060, and fixed selling andadministrative expenses were $161,386. There was no beginninginventory. Assume that direct labor is a variable cost. |
The contribution margin per unit would be: (Do not roundintermediate calculations.) |
a. $21.80 per unit
b. $26.50 per unit
c. $16.20 per unit
d. $20.70 per unit
Important note: I am aware that the rules are one question askedper question. I do not expect anyone to answer more than one, butam hopeful and optimistic as these are mutiple choice. Many timespeople have obliged me. If you want to only anwser one, or two, orall of them: Please do! If you answer only one, thats fine aswell,but please do not...DO NOT remind me of the rule, or I will give anegative rating. I love you all, and appreiciate the help even ifyou chose to only answer one, but I do not appreicate condescendingremarks. Thank you, Cheers!
Related questions
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 | รขยย | $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
SecuriCorp operates a fleet of armored cars that make scheduled pickups and deliveries in the Los Angeles area. The company is implementing an activity-based costing system that has four activity cost pools: Travel, Pickup and Delivery, Customer Service, and Other. The activity measures are miles for the Travel cost pool, number of pickups and deliveries for the Pickup and Delivery cost pool, and number of customers for the Customer Service cost pool. The Other cost pool has no activity measure because it is an organization-sustaining activity. The following costs will be assigned using the activity-based costing system:
| Driver and guard wages | $ | 920,000 |
| Vehicle operating expense | 350,000 | |
| Vehicle depreciation | 230,000 | |
| Customer representative salaries and expenses | 260,000 | |
| Office expenses | 120,000 | |
| Administrative expenses | 420,000 | |
| Total cost | $ | 2,300,000 |
The distribution of resource consumption across the activity cost pools is as follows:
| Travel | Pickup and Delivery | Customer Service | Other | Totals | ||||||
| Driver and guard wages | 50 | % | 35 | % | 10 | % | 5 | % | 100 | % |
| Vehicle operating expense | 70 | % | 5 | % | 0 | % | 25 | % | 100 | % |
| Vehicle depreciation | 60 | % | 15 | % | 0 | % | 25 | % | 100 | % |
| Customer representative salaries and expenses | 0 | % | 0 | % | 90 | % | 10 | % | 100 | % |
| Office expenses | 0 | % | 20 | % | 30 | % | 50 | % | 100 | % |
| Administrative expenses | 0 | % | 5 | % | 60 | % | 35 | % | 100 | % |
Required:
Complete the first stage allocations of costs to activity cost pools.
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