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

Questions Cloud

Find the speed of these cosmic-ray muons relative to earth : The mean lifetime of stationary muons is measured to be 2.2 µs. Find the speed of these cosmic-ray muons relative to Earth
Why pension accounting is given much less emphasis : This assignment is not designed to require you to go to the library or to access International Accounting Standards. If you spend your time just thinking about the issue, the answers should become apparent.
Explain the process of boiling a reaction mixture : The process of boiling a reaction mixture and condensing the solvent vapors back into the reaction vessel is known as
Determine the activity of the radioactive material : A device used in radiation therapy for cancer contains 3.10×10-1 g of cobalt 2760Co (59.9333819 u). Determine the activity of the radioactive material
Determine the hierarchy level for each cost pool : 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.
What is the temperature on the winter day : On a warm summer day (29?C), it takes 4.50s for an echo to return from a cliff across a lake. What is the temperature on the winter day
Should the firm purchase the new equipment : Should the firm purchase the new equipment? Be sure to justify your recommendation.
Explain the acidity constant for benzoic acid : Given that the acidity constant for benzoic acid (HOBz) is Ka=6.5x10-5, calculate the basicity constant, Kb, of the benzoate ion (OBz-).
Compute pension expense and prepare the journal entry : Compute pension expense and prepare the journal entry to record pension expense and the employer's contribution to the pension plan in 2010. Preparation of a pension worksheet is not required. Benefits paid in 2010 were $35,000.

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Qcrsl is continuing to re-evaluate all aspects of the

q.crsl is continuing to re-evaluate all aspects of the business and would like you to look into staffing costs. below

  Budgeting is an important internal activity preparing

budgeting is an important internal activity. preparing budgets involves forecasting sales and estimating costs. for

  According to martin and steele the two principal

according to martin and steele the two principal professional associations in australia - cpa australia the cpa and the

  The bottled water company comprehensive master budgetin the

the bottled water company comprehensive master budgetin the following pages you are given basic information for the

  Calculate the optimum production plan the firm

Calculate the optimum production plan the firm should follow next year given the above constraints and calculate the maximum amount it would be worth the firm paying per hour, to rent an additional specialist machine.

  Cash conversion cycle-breakeven

A firm has annual operating outlays of $1,800,000 and a cash conversion cycle of 60 days. If the firm currently pays 12 percent for negotiated financing and reduces its cash conversion cycle to 50 days, what is the annual savings?

  The virgin brand entered the australian aviation market in

the virgin brand entered the australian aviation market in 2000 in competition with qantas and the other major airlines

  Describing rolling budget

What is a rolling budget? Why are they prepared? Describe why some types of companies would employ a rolling budget instead of a master budget.

  Using the library and other course resources find a

using the library and other course resources find a manufacturing companys annual report.calculate the following ratios

  Calculate the net income earned and the taxes

Calculate the net income earned and the taxes that would have to be paid in each year if the new venture is formed as a corporation.

  Explain how the profitability of the company can be made

Explain how the profitability of the company can be made to look better if they were to produce more products, even if they are not all sold right away.

  Pricing decision for ace manufacturing

Ace Manufacturing earns revenues of $2,100,000 annually on 150,000 unit sales of industrial part. The part is priced at $14 each. A potential customer, in industry that the company has not previously served

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