Jordan Company makes two types of circuit boards. One is a high-caliber board designed to accomplish...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Jordan Company makes two types of circuit boards. One is a high-caliber board designed to accomplish the most demanding tasks; the other is a low-caliber board designed to provide limited service at an affordable price. During its most recent accounting period, Jordan incurred $260,000 of inspection cost. Jordan recently established an activity-based costing system that classifies its activities into four categories. Categories and appropriate cost drivers follow: Direct Labor Number of Number of Number of Square Hours Batches Inspectors Feet High caliber Low caliber 3,000 13,000 26 7 45,000 85,000 26 Total 16,000 52 13 130,000 Required Allocate the inspection cost between the two products assuming that it is driven by (a) unit-level activities, (b) batch-level activities, (c) product-level activities, or (d) facility-level activities. Note that each allocation represents a separate alternative. In other words, the $260,000 of inspection cost will be allocated four times, once for each cost driver. (Do not round intermediate calculations.) Allocated Cost High-Caliber Boards Low-Caliber Boards (a) Unit-level activities (b) Batch-level activities (c) Product-level activities (d) Facility-level activities Jordan Company makes two types of circuit boards. One is a high-caliber board designed to accomplish the most demanding tasks; the other is a low-caliber board designed to provide limited service at an affordable price. During its most recent accounting period, Jordan incurred $260,000 of inspection cost. Jordan recently established an activity-based costing system that classifies its activities into four categories. Categories and appropriate cost drivers follow: Direct Labor Number of Number of Number of Square Hours Batches Inspectors Feet High caliber Low caliber 3,000 13,000 26 7 45,000 85,000 26 Total 16,000 52 13 130,000 Required Allocate the inspection cost between the two products assuming that it is driven by (a) unit-level activities, (b) batch-level activities, (c) product-level activities, or (d) facility-level activities. Note that each allocation represents a separate alternative. In other words, the $260,000 of inspection cost will be allocated four times, once for each cost driver. (Do not round intermediate calculations.) Allocated Cost High-Caliber Boards Low-Caliber Boards (a) Unit-level activities (b) Batch-level activities (c) Product-level activities (d) Facility-level activities
Expert Answer:
Answer rating: 100% (QA)
Answers High Caliber Boards Low Caliber Boards A Unit Level Act... View the full answer
Related Book For
Probability and Random Processes With Applications to Signal Processing and Communications
ISBN: 978-0123869814
2nd edition
Authors: Scott Miller, Donald Childers
Posted Date:
Students also viewed these accounting questions
-
The Savannah Shirt Company makes two types of T-shirts: basic and custom. Basic shirts are plain shirts without any screen printing on them. Custom shirts are created using the basic shirts and then...
-
The Jacksonville Shirt Company makes two types of T-shirts: basic and custom. Basic shirts are plain shirts without any screen printing on them. Custom shirts are created using the basic shirts and...
-
The Quality Desk Company makes two types of computer desks from laminated particle board. The Presidential model requires 30 square feet of particle board, 1 keyboard sliding mechanism, and 5 hours...
-
At the end of its second year of operation, Jacobs Financial Advisors, Inc., had the trial balance that follows. The following information is also available: a. Office supplies on hand, December 31,...
-
From the following data, estimate the annual premium for workers compensationinsurance: Type of Work Office Repairs Estimated Payroll $28,000 85,000 Rate per $100 $0.15 1.86
-
The contingency table shows the results of a random sample of students by type of school and their attitudes on safety steps taken by the school staff. At = 0.01, can you conclude that attitudes...
-
Use the statement of cash flows started in Application Problem 18-2. The comparative balance sheet of Flexcor Corporation lists the following long-term liability and its ending balance for the...
-
Lance Brothers Enterprises acquired $720,000 of 3% bonds, dated July 1, on July 1, 2011, as a long-term investment. Management has the positive intent and ability to hold the bonds until maturity....
-
The following three summaries indicate activity in Oriole Corp. during 2 0 2 7 . Equipment \ table [ [ Date ] , [ Jan . 1 , Balance,$ 2 2 4 , 0 0 0 The following three summaries indicate activity in...
-
You are an Examiner for the Refund Integrity Program in the GST/HST Audit Division of the Canada Revenue Agency (CRA). Using sophisticated analytical tools, you are able to identify GST/HST returns...
-
Jet Fuel Risk Management at Southwest Airlines: The Company also had fuel derivative contracts in place for its expected fuel consumption: 55 percent for 2009, 30 percent for 2010, 15 percent for...
-
ECE 220 Programming for Electrical Engineering set up: ECE 220-Computer Programming for Engineering - Winter 2020 Laboratory No. 3: "Divide and Conquer" PRE-LAB You need to read Lab 3 manual and...
-
You can use influencer marketing in your campaigns. What do you need to consider when engaging in influencer marketing?
-
You are the Human Resources Manager. You have received a complaint that two of your subordinates, Mr.Ali Reza Mahmood and Mr.Xing Den,have been quarrelling in the staff working area. And meeting...
-
Charlie, a U.S. taxpayer, earned $70,000 in foreign income during the tax year. Of this amount, $40,000 was passive income, and the remaining $30,000 was general income. Charlie paid foreign taxes of...
-
Donald Martin operates a kiosk in downtown Chicago, at which he sells one style of baseball hat. He buys the hats from a supplier for $18 and sells them for $24. Donalds current breakeven point is...
-
2. Why is it that even though the Moon is much smaller in diameter than the Sun, yet it can completely block our view of the Sun from the Earth during a total eclipse? Carefully make a drawing to...
-
Separate variables and use partial fractions to solve the initial value problems in Problems 18. Use either the exact solution or a computer-generated slope field to sketch the graphs of several...
-
An experiment consists of selecting two integers (n, k) such that 0 n < 5 and 0 n < 10. (a) How many outcomes are in the sample space? (b) What fraction of the outcomes in the sample space satisfy...
-
A Web Search Engine Model - Suppose after we enter some keywords into our web search engine it finds five pages that contain those keywords. We will call these pages A, B, C, D, and E. The engine...
-
Let the random variables U and V be as described. (a) Find the MAP estimator of U given the observation V = v. (b) Find the ML estimator of U given the observation V= v. (c) Find the LMMSE estimator...
-
Below is a list of aspects of various capital expenditure proposals that the capital budgeting team of Anchor, Inc., has incorporated into its net present value analyses during the past year. Unless...
-
Clancy Company is considering the purchase of equipment for \($100,000\). The equipment will expand the companys production and increase revenue by \($30,000\) per year. Annual cash operating...
-
Western Company is evaluating a possible \($42,000\) investment in special tools that would increase cash flows from operations for four years. The tools will have no salvage value. The income tax...
Study smarter with the SolutionInn App