Determine the cost driver rate for each activity cost pool

Assignment Help Cost Accounting
Reference no: EM13538880

The cost accountant of ABC Manufacturing attended a workshop on activity-based costing and was impressed by the results. After consulting with the production personnel, he prepared the following information on cost drivers and the estimated volume for each driver.

Activity

Cost driver

Cost driver volume

Total

Machining


Ace

Best

Champ


Setup

Number of setups

125

75

50

250

Machining

Machine hours

2,500

1,500

2,000

6,000

Assembly






Assembly

Direct labor hours

25,000

15,000

5,000

45,000

Inspection

Number of inspections

50

25

25

100

The cost accountant also determined how much overhead costs were incurred in each of the four activities as follows:

Activity

Overhead costs

Machining


Setup

$150,000

Machining

750,000

Total Machining department overhead

$900,000

Assembly


Assembly

$360,000

Inspection

90,000

Total Assembly department overhead

$450,000

Total overhead costs

$1,350,000

Required:

a. Determine the cost driver rate for each activity cost pool.

b. Use the activity-based costing method to determine the unit cost for each product.

c. Summarize and comment the results.

Reference no: EM13538880

Questions Cloud

Prepare the direct material budget for next year : Prepare the direct material budget for next year -  Each electronic bicycle produced at East Mountain Bike requires two major parts
Calculate the acceleration of boxes and the tension in rod : A box of ant aunts m1 = 1.65kg and a box of ant uncles m2 = 3.30kg, slide down an inclined plane while attached by a massless rod parallel to the plane. The angle of the incline is zeta = 30 degree. The cefficient of the kinetic friction between the ..
Define the molar heat capacity for the liquid and vapor : How much energy (in kilojoules) is released when 22.5g of ethanol vapor at 97.0 Celsius is cooled to -10.0 Celsius? Ethanol has mp = -114.5 Celsius = 78.4 , = 38.56 and = 4.60 kJ/mol . The molar heat capacity is 113 J/(k.mol) for the liquid and 65..
What is the traction force exerted to the right on the leg : A setup similar to the one shown in the figure below is often used in hospitals to support and apply a horizontal traction force to an injured leg. (Let m = 6.05 kg and ? = 81.0°.) What is the traction force exerted to the right on the leg?
Determine the cost driver rate for each activity cost pool : Determine the cost driver rate for each activity cost pool and use the activity-based costing method to determine the unit cost for each product.
What is the power put into the system by gravity : A square loop with sides of 20 cm is falling through a magnetic field at v=5 m/s. The magnetic field is going into the page and is increasing as the loop falls farther through it. B = 3.0 T - 1.5 T * y. Also, the acceleration due to gravity is 9.8..
calculate their velocity after the collision : A 26.3 g mass is moving in the +x-direction at 48.8 cm/s while a 25.7 g mass is moving in the -x-direction at 62.8 cm/s. Find their velocity (in cm/s) after the collision
Determine the unit cost for each product : Determine the unit cost for each product. The allocation bases to choose from are Machine hours and direct labor costs.
Explain what ions are present in a solution of hcl : What ions are present in a solution of HCl. Theoretically, which of these ions will affect the equilibrium of Co Cl2, and what will its effect be

Reviews

Write a Review

Cost Accounting Questions & Answers

  Prepare the 20xx income statement

Prepare the 20XX statement of cost of goods manufactured and prepare the 20XX income statement.

  What is the discount being offered

What is the discount being offered? How quickly must you pay to get het discount? If you do take the discount how much should you remit?

  Discuss the merits of steves proposal

Therefore it doesn"t make good sense to have to expense it as it is incurred. Besides, if we capitalize it as goodwill, we won"t have to amortize it, and this will boost reported income." Discuss the merits of Steve"s proposal.

  Complete the cash budget for january and february

Complete the cash budget for January and February below. (List multiple items under receipts, disbursements and financing from largest to smallest amounts, e.g. 10, 5, 2.)

  1 what are the primary documents supporting a job order

1. what are the primary documents supporting a job order costing system and what purposes are served by each of them?2.

  Darlene cook company engaged in the transactions

Record the transactions, using T-accounts - Darlene Cook Company engaged in the transactions during the month of July

  Calculate over or underapplied overhead

Calculating Over- or Underapplied Overhead - What was over- or underapplied manufacturing overhead in May?

  How much are sales at mall location

The contribution margin in mall store is $200,000. Total fixed costs are $90,000 in downtown store and $93,000 in the mall location. How much are sales at mall location?

  1 why is a code of conduct important what should it

1. why is a code of conduct important? what should it contain?2. in the long run many agencies will adopt an

  Consolidation worksheet for ogre ltd

Consolidation worksheet for Ogre Ltd and its controlled entity for the period ended 30 June 2012-12 and the consolidated statement of financial position of Ogre Ltd and its controlled entity as at 30 June 2012.

  Prepare balance sheets for burst interiors

Prepare balance sheets for Burst Interiors as of March 31 and as of April 30, 2008 and determine the amount of net income for April, assuming that the owner made no additional investments or withdrawals during the month.

  Which of following is not a change in accounting principle

Which of the following is the proper time period in which to record a change in accounting estimate?

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