The ABC system is designed to allow direct material and direct labour to be traced directly...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The ABC system is designed to allow direct material and direct labour to be traced directly to each of the company's four main products. The system also includes four activity cost pools for overhead: Quality Control and Inspection, Order Processing, Delivery and Installation, and Other. The activity measures are units produced for Quality Control and Inspection, number of orders for Order Processing, and number of deliveries for Delivery and Installation. The Other cost pool has no activity measure. The following costs will be assigned using the ABC system: Indirect factory Salaries Delivery Crew Wages Expense $520,000 $140,000 The distribution of resource consumption across the activity cost pools is as follows: Quality Control and Inspection Delivery and Installation Processing Order Other Totals Indirect factory salarles. Delivery crew wages expense.... 50% 0% 25% 75% 20% D% 5% 15% 10% D0% ...... The ABC system at Movie Time contains the following activity cost pools and activity rates this year: Activity Total Activity Quality control and inspection. Delivery and installation. Order processing Other . 4800 units produced 1200 deliveries 920 orders processed None Activity data have also been supplied for the leather recliner product line: Total Activity for the Leather Recliner Product Line Activity Quality control and inspection.. Delivery and installation. Order processing. 1200 units produced 300 deliveries 230 orders processed Required: 1. Carry out the first-stage allocations of costs to activity cost pools and using the first-stage allocation compute the activity rates for the ABC system. Round to the nearest whole cent. 2. Determine the total overhead cost that would be assigned to the leather recliner product line using the ABC system. The ABC system is designed to allow direct material and direct labour to be traced directly to each of the company's four main products. The system also includes four activity cost pools for overhead: Quality Control and Inspection, Order Processing, Delivery and Installation, and Other. The activity measures are units produced for Quality Control and Inspection, number of orders for Order Processing, and number of deliveries for Delivery and Installation. The Other cost pool has no activity measure. The following costs will be assigned using the ABC system: Indirect factory Salaries Delivery Crew Wages Expense $520,000 $140,000 The distribution of resource consumption across the activity cost pools is as follows: Quality Control and Inspection Delivery and Installation Processing Order Other Totals Indirect factory salarles. Delivery crew wages expense.... 50% 0% 25% 75% 20% D% 5% 15% 10% D0% ...... The ABC system at Movie Time contains the following activity cost pools and activity rates this year: Activity Total Activity Quality control and inspection. Delivery and installation. Order processing Other . 4800 units produced 1200 deliveries 920 orders processed None Activity data have also been supplied for the leather recliner product line: Total Activity for the Leather Recliner Product Line Activity Quality control and inspection.. Delivery and installation. Order processing. 1200 units produced 300 deliveries 230 orders processed Required: 1. Carry out the first-stage allocations of costs to activity cost pools and using the first-stage allocation compute the activity rates for the ABC system. Round to the nearest whole cent. 2. Determine the total overhead cost that would be assigned to the leather recliner product line using the ABC system.
Expert Answer:
Answer rating: 100% (QA)
1 The distribution of resource and consumption across the activity cost pool Quality Delivery Orde... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
2. A car security system is designed to allow the car to move when at least three of four security measures are in place. Design a circuit to represent this system. Show the truth table, and simplify...
-
This problem is designed to allow you to see how different lease durations and interest rates affect the relationship between the capitalized lease asset and lease liability. Of course, these same...
-
The velocity selector in FIGURE 22-43 is designed to allow charged particles with a speed of 4.5 103 m/s to pass through undeflected. Find the direction and magnitude of the required electric field,...
-
Why program planning is important in public health leadership?
-
A 20-year Fitzgerald bond pays 9 percent interest annually on a $1,000 par value. If the bond sells at $945, what is the bonds yield to maturity? What would be the yield to maturity if the bond paid...
-
EDGAR, the Electronic Data Gathering, Analysis, and Retrieval system, performs automated collection, validation, indexing, and forwarding of submissions by companies and others who are required by...
-
Aztar Corporation is an operator of casinos and hotels. The companys flagship properties are the Tropicana Hotel & Casino located in Las Vegas, Nevada, and in Atlantic City, New Jersey. In early...
-
Zimmer Chemical Co. has chemical manufacturing facilities around the world. Recently, Zimmer erected a new facility in South Korea at a cost of $48 million and plans to operate the new facility for a...
-
All tax-deferred pension plans have an accumulation period and a distribution period
-
Apple is considering a replacement machine that has a cost of $25,000.The new machine will permit output expansion, so annual revenues are estimated at $5,000 during its operating period.The new...
-
ABC Corp. is a manufacturing company that produces industrial machinery. The company is considering investing in a new project that requires an investment of 1 0 million. The expected cash flows from...
-
1. Prepare a traditional income statement. 2. Prepare a contribution format income statement.
-
Prepare a written presentation on the history of hockey Introduction: Tell us about the sport you have chosen and why you chose it. Body: include the following place of origin complete "genealogy"...
-
What methods is been used to implement practice-based patient-care learning and quality improvement approaches in integrated care settings for substance use disorder? 2. What specifically can you do...
-
A semicircular bar of rectangular cross section is subjected to the loads Q shown. The inner radius, outer radius, thickness, Young's modulus and Poisson's ratio of the bar are a, b, E and v...
-
In today's environment, what of the more likely importance--cardiac disease prevention or cardiac rehabilitation?
-
watch this video on the CYCLES of DOMESTIC VIOLENCE (Links to an external site.) and post reaction. Please share what is comfortable for you and do not feel pressured to self-disclose person
-
What is your opinion of advertising awards, such as the Cannes Lions, that are based solely on creativity? If you were a marketer looking for an agency, would you take these creative awards into...
-
Referring to the previous question, (a) Is the change in the boulder's speed in one second greater than, less than, or equal to the change in speed of the pebble in the same time period? (b) Choose...
-
The acceleration of a block attached to a spring is given by a = - (0.302 m/s2) cos([2.41 rad/s]t). (a) What is the frequency of the block's motion? (b) What is the maximum speed of the block? (c)...
-
In the Alcator fusion experiment at MIT, a magnetic field of 50.0 T is produced. (a) What is the magnetic energy density in this field? (b) Find the magnitude of the electric field that would have...
-
Consider a publicly-held company whose products you are familiar with. Some examples might include: Access the companys public website and search for its most recent annual report. ies: Some pre al...
-
The 2014 financial statements of LVMH Moet Hennessey-Louis Vuitton S.A. are presented in Appendix C of this book. LVMH is a Paris-based holding company and one of the worlds largest and best-known...
-
The basic concept behind a learning organization is: A. The popularity to change. B. The people change. C. The adaptation to change. D. The resources of change.
Study smarter with the SolutionInn App