Exam 5: Activity-Based-Costing: a Tool to Aid Decision Making

The following data have been provided by Graise Corporation from its activity-based costing accounting system: Distribution of Resource Consumption across Activity Cost Pools: The "Other" activity cost pool consists of the costs of idle capacity and organization-sustaining costs that are not assigned to products. How much factory supervision and indirect factory labor cost would NOT be assigned to products using the activity-based costing system?

Carsten Wedding Fantasy Corporation makes very elaborate wedding cakes to order.The owner of the company has provided the following data concerning the activity rates in its activity-based costing system: The measure of activity for the size-related activity cost pool is the number of planned guests at the wedding reception.The greater the number of guests, the larger the cake.The measure of complexity is the number of tiers in the cake.The activity measure for the order-related cost pool is the number of orders.(Each wedding involves one order. )The activity rates include the costs of raw ingredients such as flour, sugar, eggs, and shortening.The activity rates do not include the costs of purchased decorations such as miniature statues and wedding bells, which are accounted for separately. Data concerning two recent orders appear below: Assuming that the company charges $485.85 for the Karmo wedding cake, what would be the overall margin on the order?

Manton Corporation uses an activity based costing system to assign overhead costs to products.In the first stage, two overhead costs-equipment expense and indirect labor-are allocated to the three activity cost pools-Processing, Supervising, and Other-based on resource consumption.Data to perform these allocations appear below: In the second stage, Processing costs are assigned to products using machine-hours (MHs)and Supervising costs are assigned to products using the number of batches.The costs in the Other activity cost pool are not assigned to products.Activity data for the company's two products follow: What is the overhead cost assigned to Product Z5 under activity-based costing?

Data concerning three of Falkenstein Corporation's activity cost pools appear below: Required: Compute the activity rates for each of the three cost pools.Show your work!

In activity-based costing, nonmanufacturing costs are not assigned to products.

The costs of idle capacity should be assigned to products in activity-based costing.

Schulenburg Corporation has provided the following data from its activity-based costing accounting system: Distribution of Resource Consumption across Activity Cost Pools: The "Other" activity cost pool consists of the costs of idle capacity and organization-sustaining costs that are not assigned to products. Required: a.Determine the total amount of indirect factory wages and factory equipment depreciation costs that would be allocated to the Product Processing activity cost pool.Show your work! b.Determine the total amount of indirect factory wages and factory equipment depreciation costs that would NOT be assigned to products.Show your work!

Forse Florist specializes in large floral bouquets for hotels and other commercial spaces.The company has provided the following data concerning its annual overhead costs and its activity based costing system: The "Other" activity cost pool consists of the costs of idle capacity and organization-sustaining costs. The amount of activity for the year is as follows: What would be the total overhead cost per delivery according to the activity based costing system? In other words, what would be the overall activity rate for the deliveries activity cost pool? (Round to the nearest whole cent. )

The following data have been provided by Kilmartin Corporation from its activity-based costing accounting system: Distribution of Resource Consumption across Activity Cost Pools: The "Other" activity cost pool consists of the costs of idle capacity and organization-sustaining costs that are not assigned to products. Required: a.Determine the total amount of supervisory wages and factory utilities costs that would be allocated to the Machining activity cost pool.Show your work! b.Determine the total amount of supervisory wages and factory utilities costs that would NOT be assigned to products.Show your work!

Bera Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products: Data for one of the company's products follow: How much overhead cost would be assigned to Product Q79P using the activity-based costing system?

The practice of assigning the costs of idle capacity to products results in more stable unit product costs.

Zumbrunnen Corporation uses activity-based costing to compute product margins.Overhead costs have already been allocated to the company's three activity cost pools-Processing, Supervising, and Other.The costs in those activity cost pools appear below: Processing costs are assigned to products using machine-hours (MHs)and Supervising costs are assigned to products using the number of batches.The costs in the Other activity cost pool are not assigned to products.Activity data appear below: Finally, sales and direct cost data are combined with Processing and Supervising costs to determine product margins. The activity rate for the Supervising activity cost pool under activity-based costing is closest to:

Belsky Corporation has provided the following data from its activity-based costing system: The company makes 490 units of product Q19S a year, requiring a total of 1, 080 machine-hours, 60 orders, and 20 inspection-hours per year.The product's direct materials cost is $46.42 per unit and its direct labor cost is $20.22 per unit. According to the activity-based costing system, the average cost of product Q19S is closest to:

Koutz Corporation uses activity-based costing to compute product margins.Overhead costs have already been allocated to the company's three activity cost pools-Processing, Supervising, and Other.The costs in those activity cost pools appear below: Processing costs are assigned to products using machine-hours (MHs)and Supervising costs are assigned to products using the number of batches.The costs in the Other activity cost pool are not assigned to products.Activity data appear below: Finally, sales and direct cost data are combined with Processing and Supervising costs to determine product margins. The activity rate for the Processing activity cost pool under activity-based costing is closest to:

Vontungeln Corporation uses activity-based costing to compute product margins.In the first stage, the activity-based costing system allocates two overhead accounts-equipment depreciation and supervisory expense-to three activity cost pools-Machining, Order Filling, and Other-based on resource consumption.Data to perform these allocations appear below: 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. Finally, sales and direct cost data are combined with Machining and Order Filling costs to determine product margins. What is the overhead cost assigned to Product I6 under activity-based costing?

The labor time required to assemble a product is an example of a(n):

Malan Corporation has provided the following data from its activity-based costing accounting system: Required: Compute the activity rates for each of the three cost pools.Show your work!

Glassey Corporation uses activity-based costing to assign overhead costs to products.Overhead costs have already been allocated to the company's three activity cost pools as follows: Processing, $20, 000;Supervising, $33, 500;and Other, $16, 500.Processing costs are assigned to products using machine-hours (MHs)and Supervising costs are assigned to products using the number of batches.The costs in the Other activity cost pool are not assigned to products.Activity data appear below: What is the overhead cost assigned to Product T3 under activity-based costing?

Munar Corporation uses activity-based costing to compute product margins.Overhead costs have already been allocated to the company's three activity cost pools-Machining, Order Filling, and Other.The costs in those activity cost pools appear below: 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 appear below: Finally, sales and direct cost data are combined with Machining and Order Filling costs to determine product margins. The activity rate for the Order Filling activity cost pool under activity-based costing is closest to:

Schwering Corporation uses activity-based costing to assign overhead costs to products.Overhead costs have already been allocated to the company's three activity cost pools as follows: Machining, $20, 800;Order Filling, $30, 400;and Other, $48, 800.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 appear below: The activity rate for the Order Filling activity cost pool under activity-based costing is closest to: