ACCTG322 Chapter Notes - Chapter 5: Purchase Order, Deutsche Luft Hansa, Room Temperature

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violetchinchilla775

8 Apr 2014

School

University of Alberta

Department

Accounting

Course

ACCTG322

Professor

Trish Stringer

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Prepare a report showing the first stage allocations of overhead costs to the activity cost pools. Compute the activity rates for the activity cost pools. Prepare a report showing the overhead costs for the order from indus telecom, including customer support costs. (a) *0. 5 dlh per unit 100 units = 50 dlhs. Prepare a report showing the customer margin for indus telecom. Sales (100 units per unit) Direct materials ( per unit 100 units) Direct labour ( per dlh 0. 5 dlh per unit 100 units) Direct labour support overhead (see part 3 above) Order processing overhead (see part 3 above) Customer support overhead (see part 3 above) Compute the activity rate for each of the activity cost pools. sh. 43 per square metre of lawn per square metre of low maintenance beds per square metre of high maintenance beds. 18,000 square metres of lawn square metres of low maintenance beds square feet of high maintenance beds.

Related Questions

EXERCISE 7-15 Comprehensive Activity-Based Costing Exercise [LO7-2, L07-3, L07-4, LO7-5] Advanced Products Corporation has supplied the following data from its activity-based costing system: Overhead Costs Wages and salaries .... Other overhead costs .. Total overhead costs ........ $300,000 100,000 $400,000 Total Activity for the Year Activity Cost Pool Activity Measure Supporting direct labor ..... Order processing ..., Customer support ....... Other ............... Number of direct labor-hours Number of customer orders Number of customers This is an organization- sustaining activity 20,000 DLHS 400 orders 200 customers Not applicable Distribution of Resource Consumption Across Activities Supporting Order Direct Labor Processing Customer Support Other Total Wages and salaries ..... Other overhead costs ... 40% 30% 30% 10% 20% 20% 10% 40% 100% 100% During the year, Advanced Products completed one order for a new customer, Shenzhen Enterprises. This customer did not order any other products during the year. Data concerning that order follow: Data concerning the Shenzhen Enterprises Order Units ordered Direct labor-hours .... Selling price ....... Direct materials .... Direct labor 10 units 2 DLHs per unit $300 per unit $180 per unit $50 per unit Required: 1. Using Exhibit 7–6 as a guide, prepare a report showing the first-stage allocations of overhead costs to the activity cost pools. 2. Using Exhibit 7–7 as a guide, compute the activity rates for the activity cost pools. 3. Prepare a report showing the overhead costs for the order from Shenzhen Enterprises includ- ing customer support costs. 4. Using Exhibit 7–12 as a guide, prepare a report showing the customer margin for Shenzhen Enterprises.

3-4. Miller Corporation uses an activity-based costing system with the following three activity cost pools:

Activity Cost: Total Activity

Fabrication 40,000 hours

Order Processing 500 orders

The Other activity cost pool is used to accumulate costs of idle capacity and organization-sustaining costs.
The company has provided the following data concerning its costs:

Wages and Salaries $420,000

Depreciation $100,000

Occupancy $120,000

Total $640,000

The distribution of resource consumption across activity cost pools is given below:

Fabrication Order Processing Other Total

Wages and Salaries 5% 80% 15% 100%

Depreciation 15% 45% 40% 100%

Occupancy 25% 50% 25% 100%

3. The total cost allocation to the Fabrication activity cost pool is:

A. $640,000
B. $100,000
C. $66,000
D. $30,000

4. The total cost allocation to the Order Processing activity cost pool is:

A. $441,000

B. $100,000

C. $640,000

D. $420,000

emeraldllama483

CancicoCommunications has supplied the following data for use in its ABCsystem:

Overhead Costs
Wages and salaries	$	297,500
Other overhead costs		164,000

Total overhead costs	$	461,500

Activity Cost Pool	ActivityMeasure	Total Activity
Direct labour support	Number of direct labour-hours	12,205	DLHs
Order processing	Number of orders	500	orders
Customer support	Number of customers	150	customers
Other	These costs are not allocated to products or customers	NA

	Distribution of Resource Consumption across Activity Cost Pools

	Direct Labour Support			Order Processing			Customer Support			Other			Total
Wages and salaries		15	%		40	%		35	%		10	%		100	%
Other overhead costs		10	%		25	%		25	%		40	%		100	%

During the year, CancicoCommunications completed an order for special telephone equipmentfor a new customer, HurnTel. This customer did not order any otherproducts during the year. Data concerning that order follow:


Selling price	$	217	per unit
Units ordered		185	units
Direct materials	$	195	per unit
Direct labour-hours		0.6	DLH perunit
Direct labour rate	$	25	per DLH
Prepare a report showing the overhead costs for the order fromHurnTel, inluding customer support costs. Prepare a report showing the customer margin for HurnTel

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ACCTG322 Chapter Notes - Chapter 5: Purchase Order, Deutsche Luft Hansa, Room Temperature

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