The controller peggy kingman is concerned about the

Assignment Help Accounting Basics

Reference no: EM13577854

Shady Lady sells window coverings (shades, blinds, and awnings) to both commercial and residential customers. The following information relates to its budgeted operations for the current year.

		Commercial		Residential
Revenues		$296,300		$480,500
Direct material costs	$29,300		$49,600
Direct labor costs	118,500		309,500
Overhead costs	80,500	228,300	149,600	508,700
Operating income (loss)		$68,000		($28,200	)

The controller, Peggy Kingman, is concerned about the residential product line. She cannot understand why this line is not more profitable given that the installations of window coverings are less complex for residential customers. In addition, the residential client base resides in close proximity to the company office, so travel costs are not as expensive on a per client visit for residential customers. As a result, she has decided to take a closer look at the overhead costs assigned to the two product lines to determine whether a more accurate product costing model can be developed. Here are the three activity cost pools and related information she developed:

Activity Cost Pools	Estimated Overhead	Cost Drivers
Scheduling and travel	$108,750	Hours of travel
Setup time	65,710	Number of setups
Supervision	55,640	Direct labor cost

Expected Use of Cost Drivers per Product
	Commercial	Residential
Scheduling and travel	1,060	530
Setup time	490	300

Compute the activity-based overhead rates for each of the three cost pools. (Round answers to 2 decimal places, e.g. $12.25.)

		Overhead Rate
Scheduling and travel		$
Setup time		$
Supervision		$

Reference no: EM13577854

Questions Cloud

Assume that the rate holds true today and is constant : during a 36 year period lighting killed 3239 people in the us. assume that the rate holds true today and is constant

Consider n independent flips of a coin having probability : consider n independent flips of a coin having probability p of landing on heads. say that a changeover occurs whenever

A summary of cash flows for westward travel service for the : a summary of cash flows for westward travel service for the year ended october 31 2014 is shown below. cash receipts

Dawling computer systems is considering a project that has : dawling computer systems is considering a project that has the following cash flow data. what is the projects irr? note

The controller peggy kingman is concerned about the : shady lady sells window coverings shades blinds and awnings to both commercial and residential customers. the following

Construct a 95 confidence interval for the population mean : assuming that the population is normally distributed construct a 95 confidence interval for the population mean based

In a one way anova the degrees of freedom for the rows is 6 : in a one way anova the degrees of freedom for the rows is 6 for the columns it is 10 and for error it is 8. how many

Xon company purchases 10000 pumps annually from kobec inc : xyon company purchases 10000 pumps annually from kobec inc because the price keep increasing and reached 88 per

The lansing community college registrars office is : the lansing community college registrars office is considering replacing some canon copiers with faster copiers

User Account

All Pages