Required information [The following information applies to the questions displayed below.] Rustafson Corporation is a diversified manufacturer of consumer goods. The company's activity-based costing system has the following seven activity cost pools: Activity Cost Pool Labor-related Machine-related Machine setups Production orders Product testing Packaging General factory Activity Cost Pool Labor-related Machine-related Estimated Overhead Cost $ 52,000 $ 15,000 $ 42,000 $ 18,000 Machine setups Production orders Product testing Packaging General factory $ 48,000 $ 75,000 $ 108,800 Required: 1. Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal places.) Activity Rate per DLH per MH per setup per order per test per package per DLH Expected Activity 8,000 direct labor-hours 20,000 machine-hours 1,000 setups 500 orders 2,090 tests 5,90 packages 8,000 direct labor-hours

Required information [The following information applies to the questions displayed below.] Rustafson Corporation is a diversified manufacturer of consumer goods. The company's activity-based costing system has the following seven activity cost pools: Activity Cost Pool Labor-related Machine-related Machine setups Production orders Product testing Packaging General factory Activity Cost Pool Labor-related Machine-related Estimated Overhead Cost $ 52,000 $ 15,000 $ 42,000 $ 18,000 Machine setups Production orders Product testing Packaging General factory $ 48,000 $ 75,000 $ 108,800 Required: 1. Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal places.) Activity Rate per DLH per MH per setup per order per test per package per DLH Expected Activity 8,000 direct labor-hours 20,000 machine-hours 1,000 setups 500 orders 2,090 tests 5,90 packages 8,000 direct labor-hours

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Description: Required information[The following information applies to the questions displayed below.]Rustafson Corporation is a diversified manufacturer of consumer goods. The company's activity-based costing system hasthe following seven activity cost pools:Ac

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter4: Accounting For Factory Overhead

Section: Chapter Questions

Problem 9E: A manufacturing company has two service and two production departments. Human Resources and Machine...

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A manufacturing company has two service and two production departments. Human Resources and Machine Repair are the service departments. The production departments are Grinding and Polishing. The following data have been estimated for next years operations: The direct charges identified with each of the departments are as follows: The human resources department services all departments of the company, and its costs are allocated using the numbers of employees within each department, while machine repair costs are allocable to Grinding and Polishing on the basis of machine hours. 1. Distribute the service department costs, using the direct method. 2. Distribute the service department costs, using the sequential distribution method, with the department servicing the greatest number of other departments distributed first.
Required information [The following information applies to the questions displayed below.] Rustafson Corporation is a diversified manufacturer of consumer goods. The company's activity- based costing system has the following seven activity cost pools: Activity Cost Pool Labor-related Machine-related Machine setups Production orders Product testing Packaging General factory Estimated Overhead Cost $ 16,400 $5,000 $ 20,500 $ 19,000 $ 21,700 Predetermined overhead rate $ 36,000 $ 53,600 Expected Activity 10,000 direct labor-hours 10,000 machine-hours per DLH 500 setups 500 orders 700 tests 2. Compute the company's predetermined overhead rate, assuming that the company uses a single plantwide predetermined overhead rate based on direct labor-hours. (Round your answer to 2 decimal places.) 3,600 packages 10,000 direct labor-hours
Required information [The following information applies to the questions displayed below.] 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 Labor-related Purchase orders Product testing Template etching General factory Activity Cost Pool Labor-related (DLHs) Purchase orders (orders) Product testing (tests) Template etching (templates) General factory (MHs) Activity Measure. Direct labor-hours Number of orders Number of tests Number of templates Machine-hours Product A Product B Product C Product D Total Overhead Cost Expected Overhead Cost 2. The expected activity for the year was distributed among the company's four products as follows: Product A 500 60 260 0 3,900 $ 40,320 $1,650 $ 7,700 $ 1,260 $ 69,000 Expected Activity 2,240 DLHS Expected Activity Product B 140 120 60 28 3,200 550 orders 385 tests 45…
O Required information [The following information applies to the questions displayed below.] Rustafson Corporation is a diversified manufacturer of consumer goods. The company's activity-based costing system has the following seven activity cost pools: Activity Cost Pool Labor-related Machine-related Machine setups Production orders Product testing Packaging General factory Estimated Overhead Cost $ 17,200 $ 4,000 $ 18,000 $ 10,500 $ 27,600 $ 62,900 $ 57,600 Predetermined overhead rate Expected Activity 4,000 direct labor-hours 8,000 machine-hours per DLH 500 setups 300 orders 2. Compute the company's predetermined overhead rate, assuming that the company uses a single plantwide predetermined overhead rate based on direct labor-hours. (Round your answer to 2 decimal places.) 1,200 tests 3,700 packages 4,000 direct labor-hours
Required information [The following information applies to the questions displayed below.] 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 Labor-related Purchase orders Product testing Template etching General factory Activity Cost Pool Labor-related (DLHS) Activity Measure Product A Product B Product C Product D Direct labor-hours Number of orders Number of tests Number of templates Machine-hours Total Overhead Cost Expected Overhead Cost $ 30,115 $ 2,320 $ 6,930 $ 870 $ 65,100 2. The expected activity for the year was distributed among the company's four products as follows: Product A 625 30 190 Expected Activity 1,585 DLHS Product B 160 Purchase orders (orders) 190 Product testing (tests) 55 Template etching (templates) 17 3 General factory (MHS) 3,600 1,700 2,300 Using the ABC data, determine the total amount…
Helm Corporation uses an activity-based costing system with three activity cost pools. The company has provided the following data concerning its costs and its activity based costing system: Costs: Manufacturing overhead Selling and administrative expenses Total Distribution of resource consumption: Manufacturing overhead Selling and administrative expenses $304,500 $493,000 Activity Cost Pools Customer Support 85% 20% O $116,000 O $428,000 Order Size 5% 60% S S Other 10% 20% The "Other" activity cost pool consists of the costs of idle capacity and organization-sustaining costs. You have been asked to complete the first-stage allocation of costs to the activity cost pools. How much cost, in total, would be allocated in the first-stage allocation to the Customer Support activity cost 480,000 100,000 580,000 Total 100% 100%
Required information [The following information applies to the questions displayed below.] Rustafson Corporation is a diversified manufacturer of consumer goods. The company's activity-based costing system has the following seven activity cost pools: Part 2 of 2 TE Estimated Overhead Cost $ 18,400 $ 5,000 $ 46,800 $ 23,000 $ 27,200 $ 39,600 $ 51,600 Activity Cost Pool Labor-related Expected Activity 2,000 direct labor-hours 10,000 machine-hours 1,200 setups 500 orders 800 tests 3,600 packages 2,000 direct labor-hours Machine-related Machine setups Production orders Product testing Packaging General factory 2. Compute the company's predetermined overhead rate, assuming that the company uses a single plantwide predetermined overhead rate based on direct labor-hours. (Round your answer to 2 decimal places.) Predetermined overhead rate per DLH
Chrzan, Incorporated, manufactures and sells two products: Product EO and Product NO. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: Product E0 Product Ne Total direct labor-hours Activity Cost Pools Labor-related Production orders Order size The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Estimated Overhead Cost Multiple Choice $33.94 per MH $54.20 per MH Direct Expected Labor-Hours Production Per Unit 10.1 410 1,550 9.1 $51.98 per MH $21.40 per MH Activity Measures DLHS orders MHs Total Direct Labor- Hours $ 301,890 61,087 585,366 $948,343 The activity rate for the Order Size activity cost pool under activity-based costing is closest to: 4,141 14, 105 18,246 Product E 4,141 850 5,550 Expected Activity Product NO 14, 105 950 5,250 Total 18,246 1,800 10,800
Required information [The following information applies to the questions displayed below.] Rustafson Corporation is a diversified manufacturer of consumer goods. The company's activity-based costing system has the following seven activity cost pools: Estimated Overhead Cost $ 26,800 Expected Activity 5,000 direct labor-hours 9,000 machine-hours. 1,100 setups Activity Cost Pool Labor-related Machine-related $ 4,500 Machine setups $ 41,800 Production orders $ 17,000 Product testing $ 15,500 Packaging $ 51,000 General factory $ 52,400 5,000 direct labor-hours 500 orders 500 tests 3,400 packages 2. Compute the company's predetermined overhead rate, assuming that the company uses a single plantwide predetermined overhead rate based on direct labor-hours. (Round your answer to 2 decimal places.) Predetermined overhead rate per DLH
Required information [The following information applies to the questions displayed below.] 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 Labor-related Purchase orders Product testing Template etching General factory Required: 1. Compute the activity rate for each of the activity cost pools. Activity Cost Pool Labor-related Activity Measure Direct labor-hours Number of orders Number of tests Number of templates Machine-hours Purchase orders Product testing Template etching General factory Activity Rate per DLH per order per test per template per MH < Prev Expected Overhead Cost $ 18,000 $ 1,050 $ 3,500 $ 700 $ 50,000 5 of 5 Expected Activity 2,000 DLHS 525 orders 350 tests 28 templates 10,000 MHS ww Next
Helm Corporation uses an activity-based costing system with three activity cost pools. The company has provided the following data concerning its costs and its activity-based costing system: Costs: Manufacturing overhead Selling and administrative expenses Total Distribution of resource consumption: Manufacturing overhe Selling and administrative expenses Activity Cost Pools Customer Support 85% 20% Order Size 5% 60% S O $348,000 O $188,500 $29,000 O $84,000 S Other 10% 20% The "Other" activity cost pool consists of the costs of idle capacity and organization-sustaining costs. 480,000 100,000 580,000 You have been asked to complete the first-stage allocation of costs to the activity cost pools. Total 100% 100% How much cost, in total, would be allocated in the first-stage allocation to the Order Size activity cost pool? Next ▸
Weirick, Incorporated, manufactures and sells two products: Product T8 and Product P4. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Activity Cost Pools Activity Measures Estimated Overhead Cost Expected Activity Product T8 Product P4 Total Labor-related DLHs $ 134,500 9,600 4,800 14,400 Production orders orders 63,430 1,300 200 1,500 Order size MHs 992,100 3,100 3,900 7,000 $ 1,190,030 The total overhead applied to Product P4 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.) Multiple Choice $928,670 $552,747 $606,037 $1,055,530