Exam 7: Activity-Based Costing: a Tool to Aid Decision Making

Tomczak Corporation has provided the following data from its activity-based costing accounting system: 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 Unit Processing 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!

The controller of Hallowell Company estimates the amount of materials handling overhead cost that should be allocated to the company's two products using the data that are given below: The total materials handling cost for the year is expected to be $18,257.40. -The activity rate for Activity 3 is closest to:

Lifsey Wedding Fantasy Company 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 all of the costs listed above are avoidable costs in the event that an order is turned down,what amount would the company have to charge for the Pyburn wedding cake to just break even?

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: The distribution of resource consumption across activity cost pools is given below: The activity rate for the Order Processing activity cost pool is closest to: A.$1,050 per order B.$1,680 per order C.$1,190 per order <underLine>D.</underLine> $1,350 per order Total Order Processing Cost: -Pauls Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products: How much overhead cost would be assigned to Product X60R using the activity-based costing system?

Changing a cost accounting system is likely to meet with little resistance in an organization since it is a technical matter of little interest to individuals outside of the accounting department.

Proudfoot Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products. Required: How much overhead cost would be assigned to each of the two products using the company's activity-based costing system?

Toma Nuptial Bakery makes very elaborate wedding cakes to order.The company has an activity-based costing system with three activity cost pools.The activity rate for the Size-Related activity cost pool is $1.14 per guest.(The greater the number of guests,the larger the cake. ) The activity rate for the Complexity-Related cost pool is $31.86 per tier.(Cakes with more tiers are more complex. ) Finally,the activity rate for the Order-Related activity cost pool is $59.66 per order.(Each wedding involves one order for a cake. ) 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 $458.08 for the Towry wedding cake,what would be the overall margin on the order?

Kleppe Corporation has provided the following data from its activity-based costing accounting system: The "Other" activity cost pool consists of the costs of idle capacity and organization-sustaining costs that are not assigned to products. -How much indirect factory wages and factory equipment depreciation cost would be assigned to the Customer Orders activity cost pool?

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: The distribution of resource consumption across activity cost pools is given below: The activity rate for the Order Processing activity cost pool is closest to: A.$1,050 per order B.$1,680 per order C.$1,190 per order <underLine>D.</underLine> $1,350 per order Total Order Processing Cost: -Suoboda Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products: How much overhead cost would be assigned to Product I90W using the activity-based costing system?

Rank the following methods of assigning overhead costs from least accurate to most accurate.

Unit-level production activities are performed each time a unit is made.

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

Dilloo Company uses an activity-based costing system with three activity cost pools.The company has provided the following data concerning its costs and its activity based costing system: Costs: The "Other" activity cost pool consists of the costs of idle capacity and organization-sustaining costs. You have been asked to complete the first-stage allocation of costs to the activity cost pools. -How much cost,in total,would be allocated in the first-stage allocation to the Order Size activity cost pool?

Lifsey Wedding Fantasy Company 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 $556.96 for the Smith wedding cake,what would be the overall margin on the order?

Lakes 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!

Darter Company manufactures two products,Product F and Product G.The company expects to produce and sell 2,600 units of Product F and 6,000 units of Product G during the current year.The company uses activity-based costing to compute unit product costs for external reports.Data relating to the company's three activity cost pools are given below for the current year: Required: Using the activity-based costing approach,determine the overhead cost per unit for each product.

Whitford Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products. Required: a.How much overhead cost would be assigned to Product W52Q using the company's activity-based costing system? Show your work! b.How much overhead cost would be assigned to Product Q29D using the company's activity-based costing system? Show your work!

In activity-based costing,as in traditional costing systems,nonmanufacturing costs are not assigned to products.

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: The distribution of resource consumption across activity cost pools is given below: The activity rate for the Order Processing activity cost pool is closest to: A.$1,050 per order B.$1,680 per order C.$1,190 per order <underLine>D.</underLine> $1,350 per order Total Order Processing Cost: -Cuna Corporation has provided the following data concerning its overhead costs for the coming year: The company has an activity-based costing system with the following three activity cost pools and estimated activity for the coming year: The Other activity cost pool does not have a measure of activity;it is used to accumulate costs of idle capacity and organization-sustaining costs. The distribution of resource consumption across activity cost pools is given below: The activity rate for the Order Processing activity cost pool is closest to:

Toma Nuptial Bakery makes very elaborate wedding cakes to order.The company has an activity-based costing system with three activity cost pools.The activity rate for the Size-Related activity cost pool is $1.14 per guest.(The greater the number of guests,the larger the cake. ) The activity rate for the Complexity-Related cost pool is $31.86 per tier.(Cakes with more tiers are more complex. ) Finally,the activity rate for the Order-Related activity cost pool is $59.66 per order.(Each wedding involves one order for a cake. ) 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 all of the costs listed above are avoidable costs in the event that an order is turned down,what amount would the company have to charge for the Zedian wedding cake to just break even?