Question: Compute activity-based cost rate, time equations CAN Company sells multiple products and uses a time-driven ABC system. The companys products must be wrapped individually before

Compute activity-based cost rate, time equations CAN Company sells multiple products and uses a time-driven ABC system. The company’s products must be wrapped individually before shipping. The packaging and shipping department employs 24 people. Each person works 20 days per month on average. Employees in this department work an eight-hour shift that includes a total of 75 minutes for breaks and a meal. The full compensation, including fringe benefits, for each packaging and shipping employee is $4,050 per month.
Required
(a) Using the principles discussed in this chapter and time-driven ABC, what is the rate per hour for each packaging and shipping employee at CAN?
(b) On average, it takes one packaging and shipping employee 15 minutes to prepare a package and label, independent of the number or types of items in the shipment, plus 6 minutes per item to bubble wrap and pack it in the carton. Using CAN’s time-driven ABC system, what is the packaging and shipping cost assigned to Order 705, which consisted of 40 items?

Step by Step Solution

★★★★★

3.42 Rating (168 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

a The practical capacity per month for each packaging and shipping employee is 8 125 ho... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

62-B-M-A-C-S-D (236).docx

120 KBs Word File

Students Have Also Explored These Related Managerial Accounting Questions!

Krunkel Company makes two products and uses a traditional costing system in which a single plantwide predetermined overhead rate is computed based on direct labour-hours. Data for the two products...

Harrison Company makes two products and uses a conventional costing system in which a single plantwide, predetermined overhead rate is computed based on direct labour-hours. These products are...

Harrison Company makes two products and uses a traditional costing system in which a single plantwide predetermined overhead rate is computed based on direct labor-hours. Data for the two products...

Compute activity-based cost rate, time equations CAN Company sells multiple products and uses a time-driven ABC System. The companys products must be wrapped individually before shipping. The...

LO 3, 5 5-20 Compute activity-based cost rate, time equations CAN Company sells multiple products and uses a time-driven ABC system. The company's products must be wrapped individually before...

CAP Company sells multiple products and uses a time-driven ABC system. The company's products must be wrapped individually before shipping. The packaging and shipping department employs 16 people....

NAN Company sells multiple products and uses a time-driven ABC system. The company's products must be wrapped individually before shipping. The packaging and shipping department employs 15 people....

Hello , I would like to understand how to calculate the practical capacity per employee and the hours utilized LOL Company sells multiple products and uses a time-driven ABC system. The company's...

KIP Company sells multiple products and uses a time-driven ABC system. The company's products must be wrapped individually before shipping. The packaging and shipping department employs 26 people....

DAB Company sells multiple products and uses a time-driven ABC system. The company's products must be wrapped individually before shipping. The packaging and shipping department employs 20 people....

Which of the following are sources of funds and which are uses of funds? a. Sale of land b. Dividend payments c. Decrease in accrued taxes d. Decrease in raw materials inventory e. Depreciation...

Any object, be it a space satellite or a molecule, must attain an initial upward velocity of at least 11.2 km/s in order to escape the gravitational attraction of the earth. What would be the kinetic...

Which of the following is not an internal user of financial statement ? A board of directors B managers C officers D lenders

A 1.00-kg block (M) is on a flat frictionless surface (Fig. 5.32). This block is attached to a spring initially at its relaxed length (spring constant is 50.0 N/m). Alight string is attached to the...

A 10.0-keV X-ray photon is successively scattered by two free electrons initially at rest. In the first case, it is scattered through an angle of 41o; the second scattering is through an angle of...

A 1.00-F capacitor, initially charged to 12 V, discharges when it is connected in series with a resistor. (a) What resistance is necessary to cause the capacitor to have only of its initial charge...

A 10.0-F capacitor in a heart defibrillator unit is charged fully by a 10 000-V power supply. Each capacitor plate is connected to the chest of a patient by wires and flat paddles, one on either side...

Harry is a surfer who can successfully ride about 170% of waves. Assume that his wave-riding ability is independent, from wave to wave. Let X be the number of waves that pass until he successfully...

Are all alloys homogeneous solutions? Explain your answer.

Many companies must determine whether to internally produce their component parts or to outsource them. Further, some companies now outsource key components or business processes to international...

Break into teams and identify costs that an airline such as Northwest would incur on a flight from Green Bay to Minneapolis. (1) Identify the individual costs as variable or fixed. (2) Assume that...

Jared Greenberg and Dan Zinger of Prairie Sticks Bat Company make baseball bats. They must decide on the best sales mix. Assume their company has a capacity of 80 hours of lathe/ processing time...

If your friend is comparing two fuel formulations in a lab, cannot test them on the same engines, and he/she knows very little about the data (e.g., normality characterization, population variance)....

Please answer Question # 63 and show work. A bond has a modified duration of 5.87 years, a par value of $1,000, and a current market value of $1,008. What is the dollar value of an 01? A. $0.0698 B....