subject
Business, 24.03.2020 05:24 jesusdelao

This problem has been solved!
See the answer
Murri Corporation has an activity-based costing system with three activity cost pools-Processing, Supervising, and Other. The company's overhead costs, which consist of factory utilities and indirect labor, are allocated to the cost pools in proportion to the activity cost pools' consumption of resources. Costs in the Processing cost pool are assigned to products based on machine-hours (MHs) and costs in the Setting Up cost pool are assigned to products based on the number of batches. Costs in the other cost pool are not assigned to products. Data concerning the two products and the company's costs and activity-based costing system appear below:

Factory Utilities(total): 29000
Indirect Labor(total): 7000

Distribution of Resource Consumption Across Activity Cost Pools:
Processing Setting Up Other Processing Setting up Other
Factory Utilities .4 .1 .5
Indirect Labor .5 .2 .3

MHs Batches

Product X7 2,900 700

Product L4 7,100 300

TOTAL 10,000 1,000

Product X7 Product L4

Sales (total) $54,000 $85,100

Direct Materials (total) $19,100 $33,500

Direct Labor (total) $26,300 $35,000

a) Assign overhead cost to activity cost pools using activity-based costing.

b) Calculate activity rates for each activity cost pool using activity-based costing.

c) Determine the amount of overhead cost that would be assigned to each product using activity-based costing.

d) How much out of the cost would NOT be assigned to products using the activity-based costing system?

e) Determine the product margins for each product using activity-based costing.

ansver
Answers: 3

Another question on Business

question
Business, 21.06.2019 15:20
To make a profit while benefiting humanity is an example of a mission statement that what
Answers: 3
question
Business, 22.06.2019 16:50
Identify and describe a variety of performance rating scales that can be used in organizations including graphical scales, letter scales, and numeric scales.
Answers: 2
question
Business, 22.06.2019 17:00
Explain how can you avoid conflict by adjusting
Answers: 1
question
Business, 22.06.2019 19:50
Managers in a firm hired to improve the firm's profitability and ultimately the shareholders' value will add to the overall costs if they pursue their own self-interests. what does this best illustrate? a. diseconomies of scale b. principal-agent problem c. experience-curveeffects d. information asymmetries
Answers: 1
You know the right answer?
This problem has been solved!
See the answer
Murri Corporation has an activity-based cos...
Questions
question
Mathematics, 02.12.2020 01:00
question
Mathematics, 02.12.2020 01:00
question
Mathematics, 02.12.2020 01:00
question
Mathematics, 02.12.2020 01:00
question
Mathematics, 02.12.2020 01:00