Activity-based costing: hampstead company

Assignment Help Managerial Accounting
Reference no: EM1347002

Hampstead company's order entry department has 20 order entry operators. The cost associated with these 20 operators (salaries, fringe benefits, and supervision, as well as occupancy and equipment costs) is $873,600 per year. After taking into account vacations and holidays, Hampstead calculated that each operator worked about 1,920 hours per year. Allowing for breaks, training, and other time off, each operator provided about 1,560 hours of productive work each year. Hampstead uses time-driven activity based costing for its order entry operations.

a) What is the rate per hour for each order entry employee for Hampstead's activity-based costing system?

b) On average, it takes an order entry employee about 0.1 hour to enter the basic customer information for a manual customer order. In addition, manual orders require an operator spend and additional 0.02 hour to enter each line item on the order. An operator spends an average of 0.06 hour to check the information on an electric order, but no further entries are needed for specific line items. What is the order entry cost associated wit each of the following two orders?

1) A manual order with 10 line items items.

2) An electronic order with 10 line items.

Reference no: EM1347002

Questions Cloud

Explaining valid host addresses of wan links : Start with LAN on RTA and proceed clockwise. Determine the number that how many total valid host addresses will be wasted on WAN links?
Traditional costing and activity-based costing : What should the Manhattan Company do to improve its profitability? Consider pricing and product-level changes among your suggest. Who should be involved in implementing your recommendations?
Find out the speed of light in calcite : A man weighing 730 and a woman weighing 410 have the same momentum. What is the ratio of the man's kinetic energy to that of the woman.
Elucidate what will happen if oil prices remain in range : As per to Global Insight, a Massachusetts economics consultancy, elucidate what will happen if oil prices remain in the range of $65 to $70 per barrel for a couple of more months.
Activity-based costing: hampstead company : Hampstead company's order entry department has 20 order entry operators. The cost associated with these 20 operators (salaries, fringe benefits, and supervision, as well as occupancy and equipment costs) is $873,600 per year.
Improving communication and indepedent distribution channels : List and explain the three possible relationships among perceived value, price and cost ignoring the competition for the present. If you consider the competition, then what is the perceived relationship among value, price and cost
Drawing entities and relationship using crow-s foot notation : These following questions require to you to create entities and their relationship using the Crow's Foot notation suitably.
Product costing- traditional and activity : Determine total product cost per unit for each product using an activity based costing system. Use the number of units as the cost driver for each activity.
What is the temperature t of concorde''s skin in flight : A hunter aims directly at a target (on the same level) 101m away. If the bullet leaves the gun at a velocity of 203m/s, by how much will it miss the target.

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Advantages and disadvantages of job order costing

What would be some particular examples of advantages and disadvantages of job order costing?

  Determine the break even point

Give the following cost data Costs /per unit labor . $ 4 Materials .5 Fixed cost . $ 12000 Determine the break even point in units if the selling price is $ 19.00 Determine the break-even point in sales at a selling price of $ 19.00 What would profit..

  Which cost systems would companies use

Recognize which costing system - job order or process cost - the following companies would use:

  Advise managers whether or not this contract is profitable

Advise managers whether or not this contract is profitable. Evaluate any additional information that managers need to consider before accepting or rejecting this contract

  Prepare journal entries needed to reflect the activity

Do the pension worksheet and create the journal entries needed to reflect the above activity.

  Trinco ltd - business statement

Advise managers whether or not this contract is profitable. All assumptions must be clearly stated.

  Characteristics applies to process costing

Which of the following characteristics applies to process costing but not to job costing?

  Analyze the methods of capital investment appraisal

Question: Analyze the methods of capital investment appraisal , Explain briefly…

  Cost-volume-profit model

Explain these objections to the accountant's convention cost-volume-profit model

  Minimum amount of revenue

Estilo Company has 3 operating segments with following information: What is the minimum amount of revenue that each of these segments must generate to be considered separately reportable?

  About the merger and acquisition activity of the coca cola

Select one acquisition the company has undertaken during recent history and explain details of the deal. About the merger and acquisition activity of the Coca Cola

  Costing choices-process-job and activity-based methods

Pick a costing method: process, job, or activity based. Explain the nature of your chosen method. What types of organizations should choose that method?

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