ACCT 241 Week 7 Assignment Help 3

ACCT 241 Week 7 Assignment Help 3 | American University 

1.

Fogerty Company makes two products—titanium Hubs and Sprockets. Data regarding the two products follow:

Additional information about the company follows:    

1. Hubs require $32 in direct materials per unit, and Sprockets require $18.

2. The direct labor wage rate is $15 per hour.

3. Hubs are more complex to manufacture than Sprockets and they require special processing.

4. The company’s activity-based absorption costing system has the following activity cost pools:
5.  

Required:

1. Compute the activity rate for each activity cost pool.

2. Compute the unit product cost for Hubs and Sprockets using activity-based absorption costing.

Complete this question by entering your answers in the tabs below.

Compute the activity rate for each activity cost pool.

Compute the unit product cost for Hubs and Sprockets using activity-based absorption costing. (Do not round intermediate calculations. Round your answers to 2 decimal places.)

2.

Securi Corp operates a fleet of armored cars that make scheduled pickups and deliveries in the Los Angeles area. The company is implementing an activity-based costing system that has four activity cost pools: Travel, Pickup and Delivery, Customer Service, and Other. The activity measures are miles for the Travel cost pool, number of pickups and deliveries for the Pickup and Delivery cost pool, and number of customers for the Customer Service cost pool. The Other cost pool has no activity measure because it is an organization-sustaining activity. The following costs will be assigned using the activity-based costing system:

The distribution of resource consumption across the activity cost pools is as follows:

Required:

Complete the first stage allocations of costs to activity cost pools.

3.

Green Thumb Gardening is a small gardening service that uses activity-based costing to estimate costs for pricing and other purposes. The proprietor of the company believes that costs are driven primarily by the size of customer lawns, the size of customer garden beds, the distance to travel to customers, and the number of customers. In addition, the costs of maintaining garden beds depends on whether the beds are low maintenance beds (mainly ordinary trees and shrubs) or high maintenance beds (mainly flowers and exotic plants). Accordingly, the company uses the five activity cost pools listed below:

The company already has completed its first stage allocations of costs and has summarized its annual costs and activity as follows:

Required:

Compute the activity rate for each of the activity cost pools. (Round your answers to 2 decimal places except customer billing and service.)

4.

Klumper Corporation is a diversified manufacturer of industrial goods. The company’s activity-based costing system contains the following six activity cost pools and activity rates:

Activity data have been supplied for the following two products:

Required:

How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system?

5.

Thermal Rising, Inc., makes par gliders for sale through specialty sporting goods stores. The company has a standard paraglide model, but also makes custom-designed par gliders. Management has designed an activity-based costing system with the following activity cost pools and activity rates:

Management would like an analysis of the profitability of a particular customer, Big Sky Outfitters, which has ordered the following products over the last 12 months:

The company’s direct labor rate is $19.50 per hour.

Required:

Using the company’s activity-based costing system, compute the customer margin of Big Sky Outfitters. (Round your intermediate calculations and final answer to the nearest whole dollar amount.)

6.

CD Express, Inc., provides CD duplicating services for its customers. An order from a customer can be for a single copy or for thousands of copies. Most jobs are broken down into batches to allow smaller jobs, with higher priorities, to have access to the machines.

A number of activities carried out at CD Express are listed below.

Required:

Classify each of the activities below as either a unit-level, batch-level, product-level, customer-level, or organization-sustaining activity. An order to duplicate a particular CD is a product-level activity. Assume the order is large enough that it must be broken down into batches.