nt Systems Corporation is estimating activity costs associated with producing disk drives, tapes drives, and wire drives. The indirect labor can be traced to five separate activity pools. The budgeted activity cost and activity base data by product are as follows: Procurement Scheduling Materials handling Activity Cost $370,000 Activity Base Number of purchase orders 250,000 Number of production orders 500,000 Number of moves Product development 730,000 Number of engineering changes Production 1,500,000 Machine hours Number of Purchase Number of Number Production Number of Number of Engineering Machine Orders Orders Moves Changes Hours of Units Disk drives 4,000 300 1,400 10 2,000 2,000 Tape drives 4,000 150 800 10 8,000 4,000 Wire drives 12,000 800 4,000 25 10,000 2,500 The activity-based cost (rounded to the nearest cent) for each wire drive unit is a. $204.13 b. $173.51 c. $744.06 d. $394.12 Previous Next
Q: Identify which of the following statement is correct for perpetual inventory system? Under the…
A: The objective of the question is to identify the correct statement about the perpetual inventory…
Q: Three grams of musk oil are required for each bottle of Mink Caress, a very popular perfume made by…
A: Budgeting:Budgeting is predicting the future with the help of available data and the expectations…
Q: PA11-3 (Static) Comparing, Prioritizing Multiple Projects [LO 11-1, 11-2, 11-3, 11-6] Hearne Company…
A: Net Present Value (NPV) is the method that determines the net present value of cash inflows and…
Q: On January 1, 2024, Nguyen Electronics leased equipment from Nevels Leasing for a four-year period…
A: To solve this problem, we can use the annuity formula to calculate the annual lease payments. Then,…
Q: prepare cash flow budget based on the following information Items Quarter 1 Quarter 2…
A: To prepare a cash flow budget based on the provided information, we'll follow these steps:1.…
Q: Comparative balance sheets for 2024 and 2023 and a statement of income for 2024 are given below for…
A: The cash flow statement is prepared at the end of the period to know the cash position. It reflects…
Q: Creswell Corporation's fixed monthly expenses are $26,000 and Its contribution margin ratio is 60%.…
A: The objective of the question is to calculate the net operating income of Creswell Corporation in a…
Q: Determining Merchandise to Be Included or Excluded from Ending Inventory The unadjusted inventory…
A: Inventory -All products, materials, and commodities that a business buys or manufactures with the…
Q: Lewis Incorporated and Clark Enterprises report the following amounts for the year. Inventory…
A: 1: Lewis:Cost of goods sold: $266,200 Clark:Cost of goods sold: $173,600 2: Lewis: Inventory…
Q: Tim is retiring from his job soon at which time his employer will make the following offer: 1. A…
A: Present value( PV) is a fiscal conception that refers to the current worth of a unborn sum of…
Q: Required information [The following information applies to the questions displayed below.) Jorgansen…
A: Absorption costing is a method of costing in which product cost is calculated by adding direct…
Q: Hana's only child, Kwan, passed away last year at the age of 42. Kwan had been diagnosed with a…
A: The objective of the question is to determine the tax impact resulting from Kwan's death,…
Q: Reporting stockholders' equity Using the following accounts and balances, prepare the “Stockholders’…
A: The objective of the question is to prepare the 'Stockholders' Equity' section of the balance sheet…
Q: accounting period, the company Income Statement Rent revenue Expenses: Salaries and wages expense…
A: Income Statement :The Income statement refers to the summary of receipts earned and expenses…
Q: Use PW analysis to determine which offer you should accept with inflation considered. Select offer…
A: Present value states that an amount of money nowadays is really worth extra than the equal quantity…
Q: Sheffield Inc. factors receivables with a carrying amount of $233,500 to Joffrey Company for…
A: Net proceeds = Cash received - Recourse liability= $178,600 - $2870= $175730
Q: Puget Sound Divers provides diving services, such as underwater ship repairs, to its clients. The…
A: Flexible budget :— This budget is prepared by multiplying standard variable amount per activity unit…
Q: Ivanhoe Network Associates has a current ratio of 1.60, where the current ratio is defined as…
A: To find out how much Ivanhoe Network Associates can increase their notes payable without dropping…
Q: The face value of a nine-month, 6.1% note dated April 30, 2006, is $589.09. Determine each of the…
A: “Since you have posted a question with multiple sub parts, we will provide the solution only to the…
Q: 3. You have found during the audit of sales transactions that several transactions recorded by the…
A: The objective of the question is to determine the most appropriate type of audit opinion that should…
Q: I need Explation and step solution.....
A: Solution with Explanation:Step 1: Calculate Interest Accrued for Each PeriodPeriod 1 (May 13 - June…
Q: Current Attempt in Progress On December 31, 2019, Crane Company leased machinery from Terminator…
A: Lease liability refers to an amount that is to be paid by the lessee after considering the…
Q: Recording and Reporting Temporary and Permanent Differences The records of Lane Corporation show the…
A: Temporary difference means the difference between profit as per books and profit as per tax &…
Q: On June 1, 2024, Emmet Property Management entered into a 2-year contract to oversee leasing and…
A: Revenue recognition is a set of principles for recognizing revenue from transaction. In order for a…
Q: ! Required information [The following information applies to the questions displayed below] Each of…
A: Relevant cost is the cost that is different between different alternatives. This cost is considered…
Q: Orion Iron Corporation tracks the number of units purchased and sold throughout each year but…
A: The inventory can be valued using various methods as FIFO, LIFO and average inventory method. The…
Q: Question Viewer ufacturing bought three used machines in a $164,000 lump-sum purchase. An…
A: Machine is a non-current asset used by the entity for daily business operations. These are shown on…
Q: Question Content Area The price-earnings ratio on common stock is computed as a. dividends per…
A: The price-earnings (P/E) ratio is a financial metric that is widely used to measure the relative…
Q: ,620,000 Complete this question by entering your answers in the tabs below. 120,000 Req 1 Req 2A Req…
A: Percentage completion method in contract costing is a method in which revenue is recognised on the…
Q: The following information pertains to MacKenzie Corp. Sales of 22,500 units for $900,000, Fixed…
A: The objective of the question is to determine the new selling price, the new break-even point, the…
Q: Global Traders purchases a piece of equipment for $1.5 million and incurs the following expenses:…
A: Cost capitalization is used when a business disburses finances to acquire an assets that expected to…
Q: 1. Sales: 32,000 units; unit selling price $82 2. Cost of one unit of finished goods: direct…
A: Cost of goods sold refers to the total cost of merchandise inventory sold during a particular…
Q: 3 45678 Sources of Sales Estimate a Sales Manager 1st Quarter $520,000 2nd Quarter 3rd Quarter 4th…
A: An inventory purchase budget is a financial plan that outlines the expected purchases of inventory…
Q: Required: a. Compute materials price and efficiency variances. b. Compute materials mix and yield…
A: Standard costing is one of the methods of costing which specializes in measuring the overall…
Q: Question Content Area Based on the following data for the current year, what is the number of days'…
A: The objective of the question is to calculate the number of days' sales in inventory. This is a…
Q: Salik Sdn Bhd is the producer of industrial lubricant made from palm oil waste. The following is…
A: To calculate the standard variable cost per unit for each manufacturing cost in Salik Sdn Bhd's…
Q: ! Required information (The following information applies to the questions displayed below.]…
A: Useful life is defined as the total period for which a resource can be used in the operations of a…
Q: Pronghorn Corp. has 6,000 preferred shares outstanding ($3.00 dividend), which were issued for…
A: Answer:- Dividend meaning:- A dividend is simply a portion of a business's income that is given to…
Q: Through November, Cameron has received gross income of $129,000. For December, Cameron is…
A: It has been given in the question that there is a zero itemized deduction during the year and in…
Q: Review View Help Paragraph 2 Normal No Spacing Heading 1 Heading 2 Rollins and Cohen, CPAS…
A: TOTAL COSTTotal Cost is the cost which is incurred to manufacture a product. Total Cost Includes…
Q: MA1 - #30 Flashlight, Inc. makes two types of flashlights and is implementing an activity-based…
A: Activity based costing is the method through which the company allocates its overhead costs by…
Q: Carla Vista Corporation has current liabilities of $422,000, a quick ratio of 1.9, inventory…
A: Lets understand the basics.Current ratio compares current liabilities as compared to current assets.…
Q: 2&3. Complete the following accounts (use the balance column format or T-accounts): Cash (101);…
A: A journal is a subsidiary book of account that information monetary transactions in keeping with…
Q: Carpenter Corporation uses the weighted-average method in its process costing system. This month,…
A: The objective of the question is to find out the number of units in the ending work in process…
Q: Question 6 In an operating lease the agreement would results in purchasing the asset by the lessee.…
A: “Since you have posted multiple questions, we will provide the solution only to the first question…
Q: Bridgeport Corporation is authorized to issue both preferred and common stock. The par value of the…
A: Journal entries are part of accounting system which records the day-to-day business related monitory…
Q: Sheffield Company has accumulated the following budget data for the year 2022: 1. Sales: 32,000…
A: The objective of the question is to prepare a schedule showing the calculation of the cost of goods…
Q: Current Attempt in Progress Larkspur Corporation incurred the following costs during 2022. Direct…
A: SCHEDULE OF COST OF GOODS MANUFACTUREDSchedule Of Cost Of Goods Manufactured are those costs which…
Q: 1 Kilogram of chemicals purchased for $2000 and with an additional $1000 is processed into 400…
A: 1.Allocation of Support Departments' Costs:a. Direct Method:In the direct method, support department…
Q: a
A: 1-a) Net operating income will decrease by $ 8,800 if advertising budget is spent. 1-b) No,…
Trending now
This is a popular solution!
Step by step
Solved in 1 steps
- Firenza Company manufactures specialty tools to customer order. Budgeted overhead for the coming year is: Previously, Sanjay Bhatt, Firenza Companys controller, had applied overhead on the basis of machine hours. Expected machine hours for the coming year are 50,000. Sanjay has been reading about activity-based costing, and he wonders whether or not it might offer some advantages to his company. He decided that appropriate drivers for overhead activities are purchase orders for purchasing, number of setups for setup cost, engineering hours for engineering cost, and machine hours for other. Budgeted amounts for these drivers are 5,000 purchase orders, 500 setups, and 2,500 engineering hours. Sanjay has been asked to prepare bids for two jobs with the following information: The typical bid price includes a 40 percent markup over full manufacturing cost. Required: 1. Calculate a plantwide rate for Firenza Company based on machine hours. What is the bid price of each job using this rate? 2. Calculate activity rates for the four overhead activities. What is the bid price of each job using these rates? 3. Which bids are more accurate? Why?Pelder Products Company manufactures two types of engineering diagnostic equipment used in construction. The two products are based upon different technologies, X-ray and ultrasound, but are manufactured in the same factory. Pelder has computed the manufacturing cost of the X-ray and ultrasound products by adding together direct materials, direct labor, and overhead cost applied based on the number of direct labor hours. The factory has three overhead departments that support the single production line that makes both products. Budgeted overhead spending for the departments is as follows: Pelders budgeted manufacturing activities and costs for the period are as follows: The budgeted cost to manufacture one ultrasound machine using the activity-based costing method is: a. 225. b. 264. c. 293. d. 305.Sanford, Inc., has developed value-added standards for four activities: purchasing parts, receiving parts, moving parts, and setting up equipment. The activities, the activity drivers, the standard and actual quantities, and the price standards for 20x1 are as follows: The actual prices paid per unit of each activity driver were equal to the standard prices. Required: 1. Prepare a cost report that lists the value-added, non-value-added, and actual costs for each activity. 2. Which activities are non-value-added? Explain why. Also, explain why value-added activities can have non-value-added costs.
- Adam Corporation manufactures computer tables and has the following budgeted indirect manufacturing cost information for the next year: If Adam uses the step-down (sequential) method, beginning with the Maintenance Department, to allocate support department costs to production departments, the total overhead (rounded to the nearest dollar) for the Machining Department to allocate to its products would be: a. 407,500. b. 422,750. c. 442,053. d. 445,000.Douglas Davis, controller for Marston, Inc., prepared the following budget for manufacturing costs at two different levels of activity for 20X1: During 20X1, Marston worked a total of 80,000 direct labor hours, used 250,000 machine hours, made 32,000 moves, and performed 120 batch inspections. The following actual costs were incurred: Marston applies overhead using rates based on direct labor hours, machine hours, number of moves, and number of batches. The second level of activity (the right column in the preceding table) is the practical level of activity (the available activity for resources acquired in advance of usage) and is used to compute predetermined overhead pool rates. Required: 1. Prepare a performance report for Marstons manufacturing costs in the current year. 2. Assume that one of the products produced by Marston is budgeted to use 10,000 direct labor hours, 15,000 machine hours, and 500 moves and will be produced in five batches. A total of 10,000 units will be produced during the year. Calculate the budgeted unit manufacturing cost. 3. One of Marstons managers said the following: Budgeting at the activity level makes a lot of sense. It really helps us manage costs better. But the previous budget really needs to provide more detailed information. For example, I know that the moving materials activity involves the use of forklifts and operators, and this information is lost when only the total cost of the activity for various levels of output is reported. We have four forklifts, each capable of providing 10,000 moves per year. We lease these forklifts for five years, at 10,000 per year. Furthermore, for our two shifts, we need up to eight operators if we run all four forklifts. Each operator is paid a salary of 30,000 per year. Also, I know that fuel costs about 0.25 per move. Assuming that these are the only three items, expand the detail of the flexible budget for moving materials to reveal the cost of these three resource items for 20,000 moves and 40,000 moves, respectively. Based on these comments, explain how this additional information can help Marston better manage its costs. (Especially consider how activity-based budgeting may provide useful information for non-value-added activities.)Young Company is beginning operations and is considering three alternatives to allocate manufacturing overhead to individual units produced. Young can use a plantwide rate, departmental rates, or activity-based costing. Young will produce many types of products in its single plant, and not all products will be processed through all departments. In which one of the following independent situations would reported net income for the first year be the same regardless of which overhead allocation method had been selected? a. All production costs approach those costs that were budgeted. b. The sales mix does not vary from the mix that was budgeted. c. All manufacturing overhead is a fixed cost. d. All ending inventory balances are zero.
- Surratt Corp is projecting activity costs associated with producing disk drives, tapes drives, and wire drives. Indirect labor can be traced to five separate activity pools. The budgeted activity cost and activity base data by product are provided below. What is the activity rate for the procurement activity cost pool? Procurement Scheduling Materials handling Product development Production Activity Cost $ 370,000 250,000 500,000 730,000 1.500,000 Activity Base Number of purchase orders Number of production orders Number of moves Number of engineering changes Machine hours Number of Purchase Production Orders Number Number of Machine Engineering Hours Changes Number of Number of of Moves 1.400 Orders Units Disk drives 300 2,000 2,000 4,000 4,000 12,000 10 Tape drives Wire drives. 150 800 10 8,000 4,000 800 4,000 25 10,000 2,500Panamint Systems Corporation is estimating activity costs associated with producing disk drives, tapes drives, and wire drives. The indirect labor can be traced to four separate activity pools. The budgeted activity cost and activity base data by product are provided below. Procurement Scheduling Materials handling Product development Production Disk drives Tape drives Wire drives Activity Cost $390,900 200,200 479,700 Number of moves Activity Base Number of purchase orders Number of production orders Number of Purchase Orders 4,160 2,100 12,900 770,600 Number of engineering changes 1,491,500 Machine hours Number of Number Production of Orders Moves 1,400 520 250 155 820 4,500 The activity rate for the procurement activity cost pool is Oa. $20.40 per purchase order Ob. $65.70 per purchase order Oc. $319.10 per purchase order Od. $163.43 per purchase order Number of Engineering Changes 14 4 23 Machine Hours 1,700 9,800 11,200 Number of Units 1,800 4,400 2,300Panamint Systems Corporation is estimating activity costs associated with producing disk drives, tapes drives, and wire drives. The indirect labor can be traced to four separate activity pools. The budgeted activity cost and activity base data by product are provided below. Procurement Scheduling Materials handling Product development Production Activity Cost Activity Base $362,500 Number of purchase orders 244,700 Number of production orders 486,700 Number of moves 766,200 Number of engineering changes 1,535,800 Machine hours Disk drives Tape drives Wire drives Number of Number of Number Number of of Moves Purchase Orders Production Orders 4,090 270 2,400 225 11,900 760 The activity-based cost for each disk drive unit is Oa. $665.88 Ob. $300.73 Oc. $208.11 Od. $19.71 1,240 780 3,500 Engineering Changes 15 6 25 Machine Hours 2,500 10,000 10,200 Number of Units 2,200 4,500 2,700
- Panamint Systems Corporation is estimating activity costs associated with producing disk drives, tapes drives, and wire drives. The indirect labor can be traced to four separate activity pools. The budgeted activity cost and activity base data by product are provided below. Procurement Scheduling Materials handling Product development Production Activity Cost Activity Base $365,600 Number of purchase orders 245,100 Number of production orders 411,700 Number of moves 716,200 Number of engineering changes 1,470,000 Machine hours Disk drives Tape drives Wire drives Number of Number of Number Number of Production of Engineering Orders Moves Changes Purchase Orders 1,310 620 4,200 The activity rate for the scheduling activity cost pool is Oa. $20.55 per production order Ob. $61.00 per production order Oc. $238.18 per production order Od. $159.67 per production order 4,090 2,100 11,600 370 175 990 10 7 27 Machine Hours 2,500 9,600 12,000 Number of Units 2,200 3,800 2,700 Previous NextPanamint Systems Corporation is estimating activity costs associated with producing disk drives, tapes drives, and wire drives. The indirect labor can be traced to four separate activity pools. The budgeted activity cost and activity base data by product are provided below. Activity Cost Activity Base Procurement $309,800 Number of purchase orders Scheduling 207,900 Number of production orders Materials handling 427,200 Number of moves Product development 787,800 Number of engineering changes Production 1,508,300 Machine hours Number ofPurchaseOrders Number ofProductionOrders NumberofMoves Number ofEngineeringChanges MachineHours NumberofUnits Disk drives 3,930 330 1,340 11 1,800 1,800 Tape drives 2,400 165 710 4 8,100 3,600 Wire drives 13,000 700 4,400 20 10,400 2,100 The activity-based cost for each disk drive unit is a.$878.32 b.$16.03 c.$328.05 d.$223.91Panamint Systems Corporation is estimating activity costs associated with producing disk drives, tapes drives, and wire drives. The indirect labor can be traced to four separate activity pools. The budgeted activity cost and activity base data by product are provided below. Procurement Scheduling Materials handling Product development Production Disk drives Tape drives Wire drives Activity Cost $378,400 221,900 402,900 770,700 Number of engineering changes 1,402,800 Machine hours Number of Purchase Orders Activity Base Number of purchase orders Number of production orders Number of moves 4,160 2,100 11,100 Production Orders Number of Number of Moves 250 175 1,200 540 860 4,300 The activity rate for the materials handling cost pool is Oa. $63.76 per move Ob. $21.8 per move Oc. $172.68 per move Od. $66.71 per move Number of Engineering Machine Changes Hours 15 2,500 5 9,200 10,300 27 Number of Units 1,600 4,300 2,000