Ander Corporation would like to institute an activity-based costing system to allocate overhead to its products....
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Ander Corporation would like to institute an activity-based costing system to allocate overhead to its products. The company's Shipping Department incurs costs of $750,000 per year and has nine employees. The Shipping Department has determined three major activities that occur during the year. Allocation Activity Reviewing sales invoices Initiating shipping orders Making phone calls a Measure # of sales invoices # of shipping orders # of phone calls b. # of People 2 3 4 During the year, 60,000 phone calls were made in the department; 25,000 sales invoices were reviewed; and 15,000 shipments were initiated. Product 101 required 300 phone calls, 225 sales invoice reviews, and 175 shipping orders. Product 102 required 400 phone calls, 500 sales invoice reviews, and 350 shipping orders. Determine the amount of Shipping Department cost that should be assigned to each of these products. Total Cost $175,000 $270,000 $330,000 Determine Shipping Department cost per unit if 2,500 units of Product 101 and 5,000 units of Product 102 were sold during the year Ander Corporation would like to institute an activity-based costing system to allocate overhead to its products. The company's Shipping Department incurs costs of $750,000 per year and has nine employees. The Shipping Department has determined three major activities that occur during the year. Allocation Activity Reviewing sales invoices Initiating shipping orders Making phone calls a Measure # of sales invoices # of shipping orders # of phone calls b. # of People 2 3 4 During the year, 60,000 phone calls were made in the department; 25,000 sales invoices were reviewed; and 15,000 shipments were initiated. Product 101 required 300 phone calls, 225 sales invoice reviews, and 175 shipping orders. Product 102 required 400 phone calls, 500 sales invoice reviews, and 350 shipping orders. Determine the amount of Shipping Department cost that should be assigned to each of these products. Total Cost $175,000 $270,000 $330,000 Determine Shipping Department cost per unit if 2,500 units of Product 101 and 5,000 units of Product 102 were sold during the year
Expert Answer:
Related Book For
Managerial Accounting Tools For Business Decision Making
ISBN: 9781119754053
9th Edition
Authors: Jerry J Weygandt, Paul D Kimmel, Jill E Mitchell
Posted Date:
Students also viewed these accounting questions
-
Exhibit 166 includes six ledger accounts. Which of these six accounts often have balances at year-end that appear in the companys formal financial statements? Briefly explain how these balances will...
-
The purchasing department of a manufacturing firm has decided to apply its costs to jobs using an activity based costing system. Its costs of $490,000 are split among the three major activities: 1....
-
As the world reports on inflation, companies are taking steps to adjust their prices and manage their resources. Citizens are worried that prices will increase to a level that is difficult....
-
The Unilever Bangladesh Limited has a plant in Narayanganj, manufacturing Dove shampoo made from the ingredient imported from abroad. The company claims that each bottle of 200ml contain on average...
-
Using the data shown in Exercise 6-38, journalize the entries for the transactions assuming that Artic Company uses the perpetual inventory system.
-
please quickly! 1. ABC Sdn Bhd is a company located in Kuala Lumpur. The company provides and sells a range of logistics services that included all work necessary to accommodate customers, ranging...
-
The annual reports of publicly traded companies describe some of the financial ratios presented in this chapter. Other ratios must be calculated using the information provided in the financial...
-
Fisico Company produces exercise bikes. One of its plants produces two versions: a standard model and a deluxe model. The deluxe model has a wider and sturdier base and a variety of electronic...
-
a company performs 10000 of servise and issues an invoice to the customer. using the accural method what the correct entry to record the transaction
-
Complete Tsate's Form 1040-SR, Schedules A, B and D, Form 8949, Form 6252 and Qualified Dividends and Capital Gain Tax Worksheet. Tsate Kongia (birthdate 02/14/1954) is an unmarried high school...
-
YU CPA student, was asked by a small company to perform some management advisory services. the following information pertains to 2019 operations: Sales (5000 microwave ovens) $13,50,000 Cost Of Goods...
-
What is the overall impact of adding the hammer to Tenalpina's product lines? How many hammers must be sold to "keep the company profits the same?"In other words, not decrease profits. Is purchasing...
-
1. What is the slope of the Aggregate-Supply curve in the short run? In the long run? What shifts the AS curve(s)? 2. How does the interest-rate effect help explain the slope of the aggregate-demand...
-
4. How are organisation health and safety procedures, health and safety signage and safe work practices going to be monitored at ANIBT Hotel? Include how you will monitor ongoing compliance. 5. What...
-
Daniel invested a total of $ 1 3 , 0 0 0 in two accounts. After a year, one account lost 7 . 5 % , while the other account gained 4 . 8 % . In total, Daniel lost $ 4 2 1 . 5 0 . How much money did...
-
Pro, Inc. has just paid a dividend of $0.55 per share. The dividends are expected to grow at an annual rate of 5 percent indefinitely. What is the stock price today if the required return is 12.5...
-
Respond to the following with a question and reason for asking question to the below statement. In recent years technology has taken off. We have created so many new ways to communicate and gain...
-
Which internal control principle is especially diffi cult for small organizations to implement? Why?
-
For Kosko Company, actual sales are $1,200,000 and break-even sales are $960,000. Compute (a) The margin of safety in dollars (b) The margin of safety ratio.
-
The financial statements of Apple Inc. are available online. Instructions Answer the following questions. a. Wfvfvfv activities for the year ended September 28,2019? For the year ended September 29,...
-
Using the information in E10.3, assume that in July 2022, Myers Company incurs the following manufacturing overhead costs. The Rockies Division operates as a profit center. It reports the following...
-
The Manhattan Company has \($265\) million in assets, \($90\) million in current liabilities, \($135\) million in noncurrent liabilities, and \($40\) million in shareholders equity. Of the companys...
-
Presented below are common-sized income statement data for three well-known companies representing three different industries (pharmaceutical, beverage, and diversified): 1. Bristol-Myers Squibb 2....
-
Presented below are selected financial data for two competitors. Discuss why the return on assets increased for Company A but decreased for Company B. Company A. Company B Return on Assets Return on...
Study smarter with the SolutionInn App