First-stage allocation to the assembly activity cost pool

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Reference no: EM13179364

1. Matt Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A is 9,000 units and of Product B is 6,500 units. There are three activity cost pools, with total cost and total activity as follows:

The activity-based costing cost per unit of Product A is closest to: (Round your intermediate calculations to 2 decimal places.)
A. $4.82
B. $7.02
C. $2.32

 

 

Total Activity

  Activity Cost Pool

Total Cost

Product A

Product B

Total

  Activity 1

$26,840  

140    

470    

610    

  Activity 2

$42,705  

880    

290    

1,170    

  Activity 3

$125,700  

830    

3,360    

4,190    

2. Activity rates from Quattrone Corporation's activity-based costing system are listed below. The company uses the activity rates to assign overhead costs to products:

  Activity Cost Pools

Activity Rate

  Processing customer orders

$93.46  

 per customer order

  Assembling products

$2.78  

 per assembly hour

  Setting up batches

$54.45  

 per batch

Last year, Product F76D involved 4 customer orders, 459 assembly hours, and 21 batches. How much overhead cost would be assigned to Product F76D using the activity-based costing system?
A. $1,143.45
B. $940.00
C. $2,793.31

3. Bossie Corporation uses an activity-based costing system with three activity cost pools. The company has provided the following data concerning its costs and its activity based costing system:

  Costs:

 

  Wages and salaries

$294,000  

  Depreciation

284,000  

  Utilities

227,000  

  Total

$805,000  

  Distribution of resource consumption:

 

Activity Cost Pools

 

 

Assembly

Setting up

Other

Total

  Wages and salaries

40%    

30%    

30%    

100%    

  Depreciation

25%    

10%    

65%    

100%    

  Occupancy

20%    

75%    

5%    

100%    

How much cost, in total, would be allocated in the first-stage allocation to the Assembly activity cost pool?
A. $322,000
B. $234,000
C. $221,333

4. Umanzor Corporation uses activity-based costing to assign overhead costs to products. Overhead costs have already been allocated to the company's three activity cost pools as follows: Processing, $46,700; Supervising, $33,600; and Other, $24,200. Processing costs are assigned to products using machine-hours (MHs) and Supervising costs are assigned to products using the number of batches. The costs in the Other activity cost pool are not assigned to products. Activity data appear below:

 

MHs (Processing)

Batches (supervising)

  Product S5

18,400            

1,250            

  Product F5

770            

970            

  Total

19,170            

2,220            

What is the overhead cost assigned to Product S5 under activity-based costing? (Round your intermediate calculations to 2 decimal places.)
A. $44,896.00
B. $48,353.00
C. $18,925.00

Reference no: EM13179364

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