Activity Cost Pools Customer Product Customer Total Cost Orders Development Relations Other Total Production Department: Indirect factory wages Factory equipment depreciation Factory utilities Factory property taxes and insurance 2$ 400,000 50% 30% 15% 5% 100% 150,000 55% 30% 0% 15% 100% 120,000 59% 34% 0% 7% 100% 75,000 57% 33% 0% 10% 100% General Administrative Department: 275,000 Administrative wages and salaries Office equipment depreciation Administrative property taxes and insurance 20% 10% 40% 30% 100% 40,000 32% 16% 15% 37% 100% 60,000 0% 0% 0% 100% 100% Marketing Department: Marketing wages and salaries Selling expenses 150,000 20% 10% 40% 30% 100% 100,000 32% 16% 15% 37% 100% Use the data to complete a First-Stage Allocation to Activity Cost Pools. When completing the table, copy formulas as appropriate. A otivitu Coct Roole
Activity Cost Pools Customer Product Customer Total Cost Orders Development Relations Other Total Production Department: Indirect factory wages Factory equipment depreciation Factory utilities Factory property taxes and insurance 2$ 400,000 50% 30% 15% 5% 100% 150,000 55% 30% 0% 15% 100% 120,000 59% 34% 0% 7% 100% 75,000 57% 33% 0% 10% 100% General Administrative Department: 275,000 Administrative wages and salaries Office equipment depreciation Administrative property taxes and insurance 20% 10% 40% 30% 100% 40,000 32% 16% 15% 37% 100% 60,000 0% 0% 0% 100% 100% Marketing Department: Marketing wages and salaries Selling expenses 150,000 20% 10% 40% 30% 100% 100,000 32% 16% 15% 37% 100% Use the data to complete a First-Stage Allocation to Activity Cost Pools. When completing the table, copy formulas as appropriate. A otivitu Coct Roole
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter3: Cost Behavior And Cost Forecasting
Section: Chapter Questions
Problem 41E: Examine the graphs in Exercise 3-40. Required: As explained in the chapter, cost behavior patterns...
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Concept explainers
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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Transcribed Image Text:1. Assign Overhead Costs to Activity Cost Pools
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First-Stage Allocation to Activity Cost Pools - Excel
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FILE
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INSERT
PAGE LAYOUT
FORMULAS
DATA
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VIEW
Calibri
-A A
10
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BIU
- A -
Alignment Number
Conditional Format as
Cell
Cells
Formatting - Table - Styles -
Clipboard
Font
Styles
A1
fx
A
C
E
F
G
1
==
2 Total costs and distribution of resource consumption across activity cost pools:
3
4
Activity Cost Pools
Customer
Product
Customer
Total Cost
Orders
Development
Relations
Other
Total
6 Production Department:
7
Indirect factory wages
$
400,000
50%
30%
15%
5% 100%
Factory equipment depreciation
Factory utilities
10 Factory property taxes and insurance
8
150,000
55%
30%
0%
15% 100%
9
120,000
59%
34%
0%
7%
100%
75,000
57%
33%
0%
10%
100%
11
12 General Administrative Department:
Administrative wages and salaries
Office equipment depreciation
13
275,000
20%
10%
40%
30% 100%
14
40,000
32%
16%
15%
37%
100%
15
Administrative property taxes and insurance
60,000
0%
0%
0%
100%
100%
16
17 Marketing Department:
18 Marketing wages and salaries
Selling expenses
150,000
20%
10%
40%
30% 100%
19
100,000
32%
16%
15%
37% 100%
20
21 Use the data to complete a First-Stage Allocation to Activity Cost Pools.
22 When completing the table, copy formulas as appropriate.
23
24
Activity Cost Pools
25
Totel
Sheet1
READY
100%
Attempt(s)
Hint
Show Me
Transcribed Image Text:1. Assign Overhead Costs to Activity Cost Pools
First-Stage Allocation to Activity Cost Pools - Excel
FILE
HOME
INSERT
PAGE LAYOUT
FORMULAS
DATA
REVIEW
VIEW
Sign In
Calibri
10
%
Paste
BIU-
Alignment Number
Conditional Format as
Cell
Cells
Formatting
Table - Styles -
Clipboard
Font
Styles
A1
fx
==
A
B
C
D
E
F
G
19 Selling expenses
100,000
32%
16%
15%
37% 100%
20
21 Use the data to complete a First-Stage Allocation to Activity Cost Pools.
22 When completing the table, copy formulas as appropriate.
23
24
Activity Cost Pools
25
Total
26 Production Department:
27
28
29
30
31
32 General Administration Department:
33
34
35
36
37 Marketing Department:
38
39
40
41 Total
42
43
44
Sheet1
READY
100%
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Hint
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