Solution-Explain the two methods used to assign costs to

Explain the two methods used to assign costs to activities

Assignment Help Accounting Basics

Reference no: EM131698813

Question: Assigning Costs to Activities, Resource Drivers

The Receiving Department has three activities: unloading, counting goods, and inspecting. Unloading uses a forklift that is leased for $15,000 per year. The forklift is used only for unloading. The fuel for the forklift is $3,600 per year. Other operating costs (maintenance) for the forklift total $1,500 per year. Inspection uses some special testing equipment that has a depreciation of $1,200 per year and an operating cost of $750. Receiving has three employees who have an average salary of $50,000 per year. The work distribution matrix for the receiving personnel is as follows:

Activity Percentage of Time on Each Activity

Unloading 40%

Counting 25%

Inspecting 35%

No other resources are used for these activities.

Required: 1. Calculate the cost of each activity.

2. Conceptual Connection: Explain the two methods used to assign costs to activities.

Reference no: EM131698813

Questions Cloud

What macroeconomic factors are likely to affect genesis : Explain what specific macroeconomic factors are likely to affect genesis, i.e., inflation, interest rates, exchange rates etc.

The use of technology to adjust the vocal styling of singers : Some of might already be thinking about music and the impact that technology has on it. Certainly we can hire virtual orchestras to replace human staffed ones

Prepare the liabilities section of obrians balance sheet : Question - Prepare the liabilities section of O'Brian's balance sheet using the following information: Accounts payable $157,000

Explain the analysis of the socio-cultural aspect of tourism : Explain the Analysis of the socio-cultural aspects of tourism. Identified socio-cultural advantages and disadvantages of tourism with detailed application.

Explain the two methods used to assign costs to activities : The Receiving Department has three activities: unloading, counting goods, and inspecting. Unloading uses a forklift that is leased for $15,000 per year.

Respiratory system symptoms : In the April 2011, a basic military training camp in Maryland reported 7 recruits between the ages 18 and 22 years presenting with a fever.

What effect might it have had on non-critical thinkers : What effect might it have had on non-critical thinkers, Report the program you watched, the date of the program and purpose of the program

Financial become critical in strategic monitors and controls : What is Google’s financial analysis? Please include its profit ratios, Analytics and financial analysis become critical in strategic monitors and controls.

Calculate the total revenues per distributor category : Calculate the total revenues per distributor category, and assign the customer costs to each distributor type by using revenues as the allocation base.

User Account

All Pages

Explain the two methods used to assign costs to activities

Reference no: EM131698813

Reference no: EM131698813

Questions Cloud

Reviews

Write a Review

Accounting Basics Questions & Answers

How much control does fed have over this longer real rate

Coures:- fundamental accounting principles

Accounting problems

Theory of interest - term structure of interest rates

Write a report on internal controls

Prepare the bank reconciliation for company

Cost-benefit analysis

Theory of interest

Liquidity and profitability

What is the expected risk premium on the portfolio

Simple interest and compound interest

Capm and venture capital

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT