View Polici Show Attempt History Current Attempt in Progress Lows and Stark is a public aunting firm that offers te primacy services, auditing and tax return pripation Acovery has developed between the partners of the two service lines as to who comesbuting the greater at to the bottom line. The read contention is the alignment of overhead. The te partners argue for aging overhead on the hain of 40% of direct labor datars while the audit partners argue for implementing d costing. The partres agree to use not yw'shorted data for purposes of analysis and comparison. The following overladdata are collected to develop thei E Estimated Use of Cast Drivers per Service Activity Cest Pools Employee training Cent Drivers Direct labor dol Estimated Overhead Estimated Use of Cent Drivers Audit Tax $220300 $1837.500 $1153000 5684500 Typing and secretarial Number of reports 76300 2500 800 1,700 Computing Number of minutes 216000 60.000 27000 33.000 Facility Number of employees 141000 40 22 18 Travel Per expense reports 81.200 Drect 56.000 25.300 $735.000 (a) Your answa is currect Using traditional product using a proposed by the taa ude and tax of Lewis and Stark Auft Total overhead cost assigned eTextbook and Media (61) 300 273400 Attempts 1 of Using activity based costing prepare a schedule showing the cations of the activity based al Round overhead rates to 2 decimal places eg 1225) Activity Cost P Estimated Overhead Employe $ 200 76300 Computing 25400 Expected of Cost Drivers per Activity Adv Overly Director 500 2000 Moutes (61) Your answer is t Attempt 1 of 3 used Using activity based costing, prepare a schedule showing the computations of the activity-based overhead rates (per cost driver) (Round overhead rates to 2 decimal places 12.25) Activity Cost Pools Estimated Overhead Expected Use of Cost Drivers per Activity Activi Overhe 137500 Direct labor dollars Employee $ training 220500 Typing and secretarial 76300 2500 Reports/forms Computing 216000 0000 Minutes S Facility 141000 40 Employees $ rental Travel 812001 Direct $ 735000 eTextbook and Media (62) Direct Attempt 1 of 3 used Prepare a schedule assigning each activity's overhead cost pool to each service based on the use of the cost drivers (Round overhead rotes to 2 decimal places, eg 12.25 and cost assigned to 0 decimal places, eg 2,500) Audit Activity Cost Pool Estimated Use of Cost Drivers Activity Based Overhead Rates Cost Assigned Employee training Typing and secretarial Computing Facility rental Travel Overhead cants signed $ $ Direct Save Laber Attempts: 0 of 3 used Subm (bl) Your answer is correct Using activity based costing, prepare a schedule showing the computations of the activity-based overhead rates per cost driver (Round overhead rates to 2 decimal places g. 12.25) Activity Cost Pools Estimated Overhead Employer $ 220500 training Typing and 76300 secretarial Expected Use of Cost Drivers per Activity Activi Overhe 1837500 Direct labor dollars 2500 Reports/form Computing 216000 60000 Minutes Facility 141000 40 Employees rental Travel #1200 Direct Direct (62) eTextbook and Media 725000 Attempts: 1 of 3 used Prepare a schedule assigning each activity's overbead cost pool to each service based on the use of the cost drivers Round overhead rates to 2 decimal places, eg 12.25 and cost assigned to O decimal places, es 2.500) ost Assigned Estimated Use of Cost Drivers $ Save for Lane Tax Activity-Based Overhead Rates Cast Assigned $ $ $ Direct Attempts: 0 of 3 used Sunil Ansam Current Attempt in Progress Benton Corporation produces two grades of non-alcoholic wine from grapes that it buys from California growers. It produces and sells roughly 3,000,000 liters per year of a low cost, high volume product called CoolDay. It sells this in 600,000 5 liter jugs. Benton also produces and sells roughly 300,000 Sters per year of a low volume, high-cost product called LiteMist LiteMist is sold in 1-liter bottles Based on recent data, the CoolDay product has not been as profitable as LiteMist. Management is considering dropping the inexpensive CoolDay line so it can focus more attention on the LiteMist product. The LiteMist product already demands considerably more attention than the CoolDay line Jack Eller, president and founder of Benton, is skeptical shout this idea. He points out that for many decades the company produced only the CoolDay line and that it was always quite prodsale. It wasn't until the company started producing the more complicated LiteMist wine that the profitability of CoolDay declined. Prior to the introduction of LiteMist, the company had basic equipment, simple growing and production procedures, and virtually no need for quality control. Because LiteMist is bottled in 1-liter bottles, it requires considerably more time and effort, both to bottle and to label and box than does CoolDay. The company must bottle and handle 5 times as many bottles of LiteMist to sell the same quantity as CoolDay. CoolDay requires 1 month of aging: LiteMist requires 1 year CoolDay requires cleaning and inspection of equipment every 10,000 liters; LiteMist requires such maintenance every 600 liters Jack has asked the accounting department to prepare an analysis of the cost per liter using the traditional costing approach and using activity-based costing. The following information was collected. CoolDay LiteMist Direct materials per liter $0.40 $1.20 Direct labor cost per liter $0.50 $0.90 Direct labor hours per liter 0.07 007 Total direct labor hours 210,000 21,000 Estimated Use of Cost Drivers per Product Activity Cost Pools Cost Drivers Estimated Overhead Estimated Use of Cost Drivers CoolDay LiteMist Grape processing Cart of grapes $146.909 6,600 6000 600 Aging Total months 745,800 6,600,000 3,000,000 3,600,000 Bottling and corking Number of bottles 288,000 900.000 600,000 300,000 Labeling and boxing Number of bottles 200,700 900.000 600,000 300.000 Maintain and inspect Number of 241,600 equipment inspections 800 350 450 Answer each of the following questions $1,623,009 (a) Under traditional product costing using direct labor hours. compute the total manufacturing cost per liter of both products (Round answers to 3 decimal places, eg 12.250) CoolDay Manufacturing cost per liter $ $ Save for Later LiteMist Attempts: 0 of 3 used Submit Ar