Xie Company identified the following activities, costs, and activity drivers for this year. The company manufactures...
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Xie Company identified the following activities, costs, and activity drivers for this year. The company manufactures two types of go- karts: Deluxe and Basic. Activity Handling materials Inspecting product Expected Costs $.695,000 Expected Activity 100,000 parts 970,000 Processing purchase orders. Paying suppliers. 175,000 1,500 batches 700 orders 500 invoices 245,000 Insuring the factory Designing packaging 370,000 40,000 square feet 145,000 2 models Assume that the following information is available for the company's two products for the first quarter of this year. Basic Model 30,000 units 30,000 parts Production volume Parts required Batches made Purchase orders Invoices Deluxe Model 10,000 units 20,000 parts 250 batches 50 orders 50 invoices 10,000 sq. ft. Space occupied Models 7,000 sq. ft 1 model 1 model Required: Compute activity rates for each activity and assign overhead costs to each productmodel using activity-based costing (ABC). What is the overhead cost per unit of each model? (Round activity rate and average OH cost per unit answers to 2 decimal places.) Deluxe Activity Activity Rate Cost driver quantity incurred OH Allocated Handling materials Inspecting product Processing orders 100 batches 20 orders 10 invoices Required: Compute activity rates for each activity and assign overhead costs to each product model using activity-based costing (ABC). What is the overhead cost per unit of each model? (Round activity rate and average OH cost per unit answers to 2 decimal places.) Deluxe Activity Activity Rate Cost driver quantity incurred OH Allocated Handling materials Inspecting product Processing orders Paying suppliers Insuring factory Designing packaging Activity Rate Cost driver quantity incurred Basic Activity Handling materials Inspecting product Processing orders Paying suppliers Insuring factory Designing packaging OH Allocated Xie Company identified the following activities, costs, and activity drivers for this year. The company manufactures two types of go- karts: Deluxe and Basic. Activity Handling materials Inspecting product Expected Costs $.695,000 Expected Activity 100,000 parts 970,000 Processing purchase orders. Paying suppliers. 175,000 1,500 batches 700 orders 500 invoices 245,000 Insuring the factory Designing packaging 370,000 40,000 square feet 145,000 2 models Assume that the following information is available for the company's two products for the first quarter of this year. Basic Model 30,000 units 30,000 parts Production volume Parts required Batches made Purchase orders Invoices Deluxe Model 10,000 units 20,000 parts 250 batches 50 orders 50 invoices 10,000 sq. ft. Space occupied Models 7,000 sq. ft 1 model 1 model Required: Compute activity rates for each activity and assign overhead costs to each productmodel using activity-based costing (ABC). What is the overhead cost per unit of each model? (Round activity rate and average OH cost per unit answers to 2 decimal places.) Deluxe Activity Activity Rate Cost driver quantity incurred OH Allocated Handling materials Inspecting product Processing orders 100 batches 20 orders 10 invoices Required: Compute activity rates for each activity and assign overhead costs to each product model using activity-based costing (ABC). What is the overhead cost per unit of each model? (Round activity rate and average OH cost per unit answers to 2 decimal places.) Deluxe Activity Activity Rate Cost driver quantity incurred OH Allocated Handling materials Inspecting product Processing orders Paying suppliers Insuring factory Designing packaging Activity Rate Cost driver quantity incurred Basic Activity Handling materials Inspecting product Processing orders Paying suppliers Insuring factory Designing packaging OH Allocated
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Solution Activity based costing is to allocate cost among the products on the basis of activity Act... View the full answer
Related Book For
Financial and Managerial Accounting Information for Decisions
ISBN: 978-0078025761
6th edition
Authors: John Wild, Ken Shaw, Barbara Chiappetta
Posted Date:
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