Essay
Cricket Company has identified seven activities as part of its manufacturing process and chosen corresponding activity drivers for each activity. The chart below lists the total cost of each activity, the proportion of activity driver used for each of Cricket's two products, and the activity cost assigned to each product. Fill in the blanks below:
Activity
Cost
Activity Driver
Proportion used by
Activity Cost: Prod. 1
Activity Cost: Prod. 2
Prod. 1
Prod. 2
Design
$20,000
Design time
40%
60%
a.
b.
Preparation
$12,000
Labor hours
30%
c.
$3,600
d.
Machining
$45,000
Machine hours
e.
f.
$27,000
g.
Finishing
h.
Batches
40%
i.
$10,000
j.
Inspection
k.
Units
l.
m.
$9,000
$6,000
Packaging
n.
Orders
o.
25%
$13,500
p.
Shipping
$5,000
Packages
70%
q.
r.
$1,500
Correct Answer:

Verified
a. $8,000 = $20,000 × 40%
b. $12,000 = $...View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Correct Answer:
Verified
b. $12,000 = $...
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q21: Prevention costs are incurred to prevent quality
Q38: Washington, Inc. produces two different products (Product
Q41: Jefferson, Inc. produces two different products (Product
Q45: External failure costs occur _ a defective
Q56: Linden,Inc.uses a 5,000 square foot factory space
Q66: An activity that is performed to support
Q71: Sonora,Inc.is launching a new product that it
Q85: Which of the following is most likely
Q102: Total quality management aims to improve quality
Q106: Using the activity-proportion method results in:<br>A)higher cost