Reference no: EM13917212
Use the following information for questions 13 - 16 Clemson,
Inc. uses activity-based costing to compute product margins. In the first stage, the activity-based costing system allocates two overhead accounts-equipment depreciation and supervisor's salary to three activity cost pools-Processing, Order Filling, and Other-based on consumption or resources. See the allocation of these resources below:
Overhead Costs: Equipment Depreciation $20,000 Supervisor's Salary $8,000 Resource Consumption in Activity Cost Pools: Activity Cost Pools Processing Order Filling Other Equipment Depreciation .60 .30 .10 Supervisor's Salary .50 .20 .30 In the second stage, Processing costs are assigned to products using machine-hours (MHs) and Order Filling costs are assigned to products using the number of orders. The costs in the Other activity cost pool are not assigned to products. Activity: MHs (Processing) (Orders) Order Filling Product TD 6,600 200 Product FG 13,400 800 Total 20,000 1,000 Finally, sales and direct cost data are combined with Machining and Order Filling costs to determine product margins. Other information for the current month: Product TD Product FG Sales (total) $60,600 $70,800 DM (total) $20,800 $14,000 DL (total) $15,500 $18,000
13. According to the first stage allocation how much in total is allocated to the Processing cost pool?
14. How much equipment depreciation and supervisor's salary would NOT be assigned to products using the activity-based costing system (ie are organization-sustaining costs)?
15. The activity rate for the Order Filling activity cost pool under activity-based costing is:
16. What is the overhead cost assigned to Product TD under activity-based costing?
17. What is the product margin for Product FG under activity-based costing?
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General and administrative salaries
: general and administrative salaries are 144,00 per year. Maintenance expenses equals 2,000 per month and is paid in cash.
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Book value of the asset at the time of sale
: book value of the asset at the time of sale the amount of gain or loss on the disposal the sale affect net income increase, decrease, no effect
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Balance forward deposits
: Find the balance for the check stub-Date To Amount Balance Forward Deposits
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Transaction debit credit balance
: Number Date Description of Transaction Debit Credit Balance
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Equipment depreciation
: Equipment Depreciation $20,000 Supervisor's Salary $8,000 Resource Consumption in Activity Cost Pools: Activity Cost Pools Processing Order Filling Other Equipment Depreciation
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The cost of the items sold
: On September 12, Vander Company sold merchandise in the amount of $5,800 to Jepson Company, with credit terms of 2/10, n/30. The cost of the items sold is $4,000
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Sales are paid each month
: Sales commissions equal to 20% of sales are paid each month
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After the month of purchases
: Merchandise purchases are paid for as follows: 20% in the first month after the month of purchase and 80% in the second month after the month of purchases.
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Cash sales and credit sales
: Dims dale Sports cash sales and credit sales represent 25% and 75% respectively, of total sales. Of the credit sales, 60% is collected in the first month after the month of sales and 40% in the second month after the month of sales
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