Question: 2a. Activity rates from Your Corporation's activity-based costing system are listed below. Activity Cost Pools Activity Rate Processing customer orders........... $31.62 per customer order Assembling
2a. Activity rates from Your Corporation's activity-based costing system are listed below.
|
| Activity Cost Pools | Activity Rate | |
|
| Processing customer orders........... | $31.62 | per customer order |
|
| Assembling products..................... | $2.86 | per assembly hour |
|
| Setting up batches......................... | $46.61 | per batch |
Last year, Product H involved 9 customer orders, 666 assembly hours, and 77 batches. How much overhead cost (rounded to nearest dollar) would be assigned to
Product H using the activity-based costing system?
2b. Your Housecleaning provides housecleaning services to its clients. The company uses an activity-based costing system for its overhead costs. The company has
provided the following data from its activity-based costing system.
|
| Activity Cost Pool | Total Cost | Total Activity | |
|
| Cleaning.................... | $263,784 | 34,800 | hours |
|
| Job support................ | 145,180 | 7,000 | jobs |
|
| Client support........... | 4,774 | 220 | clients |
|
| Other......................... | 170,000 | Not | applicable |
|
| Total.......................... | $583,738 |
|
|
The Other activity cost pool consists of the costs of idle capacity and organization-sustaining costs.
One particular client requested 45 jobs during the year that required a total of 90 hours of housecleaning. For this service, the client was charged $2,000.
Using the activity-based costing system, compute the customer margin for this client.
2part please solve will like and comment
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
