Determine the hierarchy level for each cost pool

Assignment Help Managerial Accounting
Reference no: EM13487322

After a study of its processes, a firm determines it has the following 4 overhead cost pools related to the production of its 2 products: Set-up, Shipping, Product design, and Plant utilities and administration.

Both products are produced in the same facility using the same equipment. Product XYZ is a higher volume product that takes a relatively small amount of machine-time to produce, while Product ABC is a lower volume product that takes a significantly higher amount of machine-time. Also, Product XYZ requires very little set-up time, while Product ABC requires a more time-consuming set-up. Both products are shipped in a similar way, with each shipment requiring a similar amount of work.

Based on this information, determine the hierarchy level for each cost pool and an appropriate allocation base for each pool.

 

Cost Pool

Hierarchy Level

Allocation Base

Setup

 

 

 

Shipping

 

 

 

Product design

 

 

 

Plant utilities & administration

 

 

 

 

Reference no: EM13487322

Probability of a new product

What is the manager's prior probability that his competitor is planning to introduce a new product and what is his revised probability of a new product given that the competit

The contribution margin ration

Kaprelian Company sells desks at $480 per desk. The variable costs are $300 per desk. Total fixed costs for the period are $400,000. The contribution margin ration is ___. a.

Prepare a simple balance sheet of assets and liabilities

Assume that Banc One receives a primary deposit of $1 million. The bank must keep reserves of 20 percent against its deposits. Prepare a simple balance sheet of assets and l

Computing budgeted cost of basketballs

Stang Sports Equipment Company made 40,000 basketballs in a given year. Its manufacturing costs were $288,000 variable and $95,000 fixed. Suppose that no price changes will

Compute new weighted average cost of capital for donegal inc

Calculate the new weighted average cost of capital for Donegal, Inc. Calculate the EVA for Donegal, Inc., including the new products. Is the new investment a good idea?

Statement of financial position and statement of activities

show how these transactions would be reflected on the NBA's financial statements, prepare a December 31, 2013, statement of financial position and statement of activities.

Best retail strategy for a gerber

What would be the best retail strategy for a Gerber-like company focusing on organic baby cereals from German technology that want to enter into the US market? Specifically Ca

First stage allocation of overhead costs

Prepare a report showing the first-stage allocations of overhead costs to the activity cost pools. Compute the activity rates for the activity cost pools. Prepare a report sho

Reviews

Write a Review

 
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd