The controller peggy kingman is concerned about the

Assignment Help Accounting Basics

Reference no: EM13587848

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		$302,600		$482,800
Direct material costs	$29,300		$49,600
Direct labor costs	114,500		297,000
Overhead costs	82,200	226,000	149,200	495,800
Operating income (loss)		$76,600		($13,000	)

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	$106,950	Hours of travel
Setup time	50,380	Number of setups
Supervision	74,070	Direct labor cost

Expected Use of Cost Drivers per Product
	Commercial	Residential
Scheduling and travel	1,010	505
Setup time	450	230

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		$

Determine the overhead cost assigned to each product line. (Round Overhead Rate to 2 decimal places, 15.25 and final answers to 0 decimal places, e.g. $2,512.)

	Commercial	Residential
Scheduling and travel	$	$
Setup time	$	$
Supervision	$	$
Total assigned costs	$	$

Reference no: EM13587848

Questions Cloud

Comment on the adequacy of net cash provided by operating : presented below are selected financial statement items for preacher corporation for december 31 2014. inventory

What molarity of aqueous sodium chloride solution can be : question what molarity of aqueous sodium chloride solution can be expected to show the same conductivity as 0.0050 m

Krum marina sells a 42 foot exploratory submersible on : krum marina sells a 42 foot exploratory submersible on october 1 2013 and receives a 790822 non-interest

Briefly explain the disposal of collected material from : 1. describe regulatory strategies and tactics to air quality control.2. describe the following with examples where

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

Question if one starts with pure no2g at a pressure of 0500 : question if one starts with pure no2g at a pressure of 0.500 atm the total pressure inside the reaction vessel when

The specific heat of liquid bromine is 0226 jg-k how much : the specific heat of liquid bromine is 0.226 jg-k. how much heat j is required to raise the temperature of 10.0 ml of

Using the following link as a guideline answer the : using the following link as a guideline.. answer the following questions for wal-mart what was the total stockholders

The comparative balance sheets for 2013 and 2012 are given : the comparative balance sheets for 2013 and 2012 are given below for surmise company. net income for 2013 was 58

User Account

All Pages