Question: Provide a total cost estimate using the current traditional costing system Table 1: ABC activities, cost drivers, and cost pools Activity Activity cost driver Total

Provide a total cost estimate using the current traditional costing system

Table 1: ABC activities, cost drivers, and cost pools

Activity

Activity cost driver

Total activity cost pool

Est. cost driver usage

Production

Machine hours

$1,580,000

600,000

Materials

Lbs of materials

$620,000

230,000

Correction

DLH (trimming)

$755,000

35,000

Inspection

# of inspections

$290,000

2,000

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!

Q:

Provide a total cost estimate using the current traditional costing system. 2. Provide a total cost estimate using the activity based costing system proposed by the ABC implementation team. 3....

Q:

Question 3 Company A uses a traditional system in costing its products. Using this system, the company allocates all indirect production costs to products in proportion to their direct costs....

Q:

Question below; Question 2 (25 marks): The Caspian Company manufactures two products H and L. Budgeted data on the two products for a particular period are as follows: Product H Product L Production...

Q:

Question 3 Company A uses a traditional system in costing its products. Using this system, the company allocates all indirect production costs to products in proportion to their direct labour costs....

Q:

Question 3 Company A uses a traditional system in costing its products. Using this system, the company allocates all indirect production costs to products in proportion to their direct labour costs....

Q:

Kowalski Company manufactures a number of specialized machine parts. Part Compo-24 uses $35 of direct materials and $15 of direct labor per unit. Kowalskis estimated manufacturing overhead is as...

Q:

Exercise 21-17 Kowalski Company manufactures a number of specialized machine parts. Part Compo-24 uses $35 of direct materials and $15 of direct labor per unit. Kowalskis estimated manufacturing...

Q:

Mathias Company manufactures a number of specialized machine parts. Part Bunkka-22 uses $35 of direct materials and $15 of direct labor per unit. Mathias estimated manufacturing overhead is as...

Q:

You will be submitting two excel files to Bb for this assignment. REQUIREMENTS: Prepare an analysis of the estimated cost for Adria Manufacturing company's two products contrasting a traditional...

Q:

3. Calculate Harbour's gross margin per unit for each product under the traditional costing system. 4. Select the appropriate cost driver for each activity pool and calculate the activity rates if...

Q:

Eight work centers must be arranged in an L- shaped building. The locations of centers 1 and 3 are assigned as shown in the accompanying diagram. Assuming transportation costs are $ 1 per load per...

Q:

As a child, Martha Carr once visited her mothers 108-acre tract of unimproved land in Richland County, South Carolina. In 1968, Betty and Raymond Campbell leased the land. Carr, a resident of New...

Q:

Exchange - traded funds can be purchased on margin. True False

Q:

For 5 points of extra credit on this exam, please match the following. Lovelace Von Neumann Babbage Turing Jacquard House of Wisdom Hero of Alexandria For 5 points of extra credit on this exam,...