Bill Cobb Corporation had the following activities, pooled costs, and physical flow of driver units. The...
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Bill Cobb Corporation had the following activities, pooled costs, and physical flow of driver units. The company uses activity-based costing. Physical Flow of Driver Units Activities Account inquiry (hours) Account billing (lines) Account verification (accounts) Correspondence (letters) Account inquiry (hours) Account billing (lines) Account verification (accounts) Pooled Costs Correspondence (letters) $400,000 $280,000 $150,000 $50,000 The above activities are used by departments X and Y as follows: X 5,000 2,000,000 20,000 2,000 500 hours 250,000 lines 2,000 accounts 200 letters Y 800 hours 200,000 lines 1,000 accounts 1,000 letters How much of the correspondence cost will be assigned to Department X? Summer Daze Corporation manufactures two products, Bocce Ball Sets and Croquet Sets Croquet Sets were added as a product line two years ago Croquet Sets are the more complex of the two products, requiring one hour of direct labour time per unit to manufacture, compared to one half hours of direct labour time for Bocce Ball Set Croquet Sets are produced on an automated production line Indirect costs are curently alocated to the products on the basis of direct labour hours. The company estimated it would incur $332,500 in manufacturing overhead costs and produce 6,000 units of Croquet Sets and 20,000 units of Bocce Ball Sets during the current year Unit costs for materials and direct labour are Direct labour Direct materials Indirect costs are Bocce Ball Set $9 $12 Activity cost pools/drivers Machine setups Purchase orders Machine hours Maintenance requests Total Croquet Set $18 $16 Estimated Indirect Costs Estimated Activity Bocce Ball Sets $153,000 27,500 300 126,000 5,000 24,000 200 $332,500 700 Estimated Activity Croquet Sets Total 1,000 200 11,000 300 1,700 500 10,000 500 Activate Windows Go to Settings to activate Windows Bill Cobb Corporation had the following activities, pooled costs, and physical flow of driver units. The company uses activity-based costing. Physical Flow of Driver Units Activities Account inquiry (hours) Account billing (lines) Account verification (accounts) Correspondence (letters) Account inquiry (hours) Account billing (lines) Account verification (accounts) Pooled Costs Correspondence (letters) $400,000 $280,000 $150,000 $50,000 The above activities are used by departments X and Y as follows: X 5,000 2,000,000 20,000 2,000 500 hours 250,000 lines 2,000 accounts 200 letters Y 800 hours 200,000 lines 1,000 accounts 1,000 letters How much of the correspondence cost will be assigned to Department X? Summer Daze Corporation manufactures two products, Bocce Ball Sets and Croquet Sets Croquet Sets were added as a product line two years ago Croquet Sets are the more complex of the two products, requiring one hour of direct labour time per unit to manufacture, compared to one half hours of direct labour time for Bocce Ball Set Croquet Sets are produced on an automated production line Indirect costs are curently alocated to the products on the basis of direct labour hours. The company estimated it would incur $332,500 in manufacturing overhead costs and produce 6,000 units of Croquet Sets and 20,000 units of Bocce Ball Sets during the current year Unit costs for materials and direct labour are Direct labour Direct materials Indirect costs are Bocce Ball Set $9 $12 Activity cost pools/drivers Machine setups Purchase orders Machine hours Maintenance requests Total Croquet Set $18 $16 Estimated Indirect Costs Estimated Activity Bocce Ball Sets $153,000 27,500 300 126,000 5,000 24,000 200 $332,500 700 Estimated Activity Croquet Sets Total 1,000 200 11,000 300 1,700 500 10,000 500 Activate Windows Go to Settings to activate Windows
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Accounting Texts and Cases
ISBN: 978-1259097126
13th edition
Authors: Robert Anthony, David Hawkins, Kenneth Merchant
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