Rusties Company recently implemented an activity-based costing system. At the beginning of the year, management made the following estimates of cost and activity in the company’s five activity cost pools:
Activity Cost Pool Activity Measure Expected
Overhead
Cost Expected Activity
Labor-related Direct labor-hours $ 19,250 1,375 DLHs
Purchase orders Number of orders $ 1,820 455 orders
Product testing Number of tests $ 6,320 395 tests
Template etching Number of templates $ 960 40 templates
General factory Machine-hours $ 68,600 9,800 MHs
The expected activity for the year was distributed among the company’s four products as follows:
Activity Cost Pool Expected Activity
Product A Product B Product C Product D
Labor-related (DLHs) 650 125 300 300
Purchase orders (orders) 20 65 180 190
Product testing (tests) 250 65 0 80
Template etching (templates) 0 26 10 4
General factory (MHs) 3,800 2,000 1,200 2,800
Using the ABC data, determine the total amount of overhead cost assigned to each product.
Product A
Product B
Product C
Product D
Answers: 3
Another question on Business
Business, 22.06.2019 02:30
Acompany using the perpetual inventory system purchased inventory worth $540,000 on account with credit terms of 2/15, n/45. defective inventory of $40,000 was returned 2 days later, and the accounts were appropriately adjusted. if the company paid the invoice 20 days later, the journal entry to record the payment would be
Answers: 1
Business, 22.06.2019 08:40
Which of the following is not a characteristic of enterprise applications that cause challenges in implementation? a. they introduce "switching costs," making the firm dependent on the vendor. b. they cause integration difficulties as every vendor uses different data and processes. c. they are complex and time consuming to implement. d. they support "best practices" for each business process and function. e. they require sweeping changes to business processes to work with the software.
Answers: 1
Business, 22.06.2019 17:00
Cadbury has a chocolate factory in dunedin, new zealand. for easter, it makes two kinds of “easter eggs”: milk chocolate and dark chocolate. it cycles between producing milk and dark chocolate eggs. the table below provides data on these two products. demand (lbs per hour) milk: 500 dark: 200 switchover time (minutes) milk: 60 dark: 30 production rate per hour milk: 800 dark: 800 for example, it takes 30 minutes to switch production from milk to dark chocolate. demand for milk chocolate is higher (500lbs per hour versus 200 lbs per hour), but the line produces them at the same rate (when operating): 800 lbs per hour. a : suppose cadbury produces 2,334lbs milk chocolate and 1,652 lbs of dark chocolate in each cycle. what would be the maximum inventory (lbs) of milk chocolate? b : how many lbs of milk and dark chocolate should be produced with each cycle so as to satisfy demand while minimizing inventory?
Answers: 2
Business, 22.06.2019 17:30
Which curve shows increasing opportunity cost as you give up more of one option? demand curve bow-shaped curve yield curve indifference curve
Answers: 3
You know the right answer?
Rusties Company recently implemented an activity-based costing system. At the beginning of the year,...
Questions
History, 12.12.2020 17:00
Mathematics, 12.12.2020 17:00
Mathematics, 12.12.2020 17:00
Computers and Technology, 12.12.2020 17:00
Mathematics, 12.12.2020 17:00
English, 12.12.2020 17:00
Mathematics, 12.12.2020 17:00
Social Studies, 12.12.2020 17:00
English, 12.12.2020 17:00
Mathematics, 12.12.2020 17:00
Mathematics, 12.12.2020 17:00
Mathematics, 12.12.2020 17:00
Mathematics, 12.12.2020 17:00
