Question: Can I get some help with these activity baced problems? thanks 1. Feldpausch Corporation has provided the following data from its activity-based costing system: Activity

Can I get some help with these activity baced problems? thanks

1. Feldpausch Corporation has provided the following data from its activity-based costing system:

Activity Cost Pool Total Cost Total Activity

Assembly $1,282,140 61,200 Machine hrs.

Processing orders $53,958 2,040 Orders

Inspection $ 181,350 2,340 Insection hrs

The Company makes 1,100 units of product W26B a year, requiring a total of 1,200 macine hrs, and 31 inspection- hours per year. The Products direct materials cost is $50.89 per unit and its direct labor cost is $20.56 per unit. the product sells for $113.30 per unit.

According to the activity-based costing system, the product margin for the product W26B is:

a. $18,492.50

b. $17,430.05

c.$15,027.55

---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

2. Mirabil Corporation uses activity based costing to compute product margins. Overhaed cost have already been allocated tot he companys three activity cost pools--Processing, Supervising, and Other. The costs in those activity cost pools apper below:

Processing $ 6,300

Supervising $ 22,320

Other $11,400

Processing costs are assigned to products using machine- hours (MHs) and supervising costs are assigned to products using the number of batches. the cost in the other activity cost pool are not assigned to prducts.

Activity data appear below:

MHs (processing) Batches (supervising)

Product M0 14,250 450

Product M5 750 450

Total 15,000 900

Finally, sales and direct cost data are compined with processing and supervising costs to determin product margins

Product M0 Product M5

Sales (total) $82,600 $94,900

Dirct Materials (total) $29,500 $32,400

Direct labor (total) $28,800 $42,700

What is the product margin for M5 under the activity-based costing?

a. $7,155

b.$8,325

c. $19,800

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

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

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!