QUESTION 5 Ginger Corporation uses an activity-based costing system with three a

Question

QUESTION 5 Ginger 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 systemc Costs Wages and salaries Depreciation $360,000 140,000 160,000 660,000 Total Distribution of resource consumption Activity Cost Pools Assembly 10% 5% 15% Setting Up 80% 50% 60% Other 10% 45% 25% Total 100% 100% 100% Wages and salaries.. Utilities How much cost, in total, would be allocated to the Setting Ue activity cost pool? $528,000 $454,000 $418,000 O $396,000

Explanation / Answer

please post one question at a time.

question 5:

B.$454,000.

cost allocated to setting up will be

=>($360,000 wages *80%) + ($140,000 depreciation * 50%) + ($160,000 utilities*60%)

=>$454,000.

question 6:

B.$6,661.90

question 7:

D.4,3,2,1.

The following is the order of tasK:

identification of cost pools

identification of cost drivers

calculation of pool rates

assignment of costs to products.

question8:

C.the company's high volume products are over costed.

if overhead is allocated using direct machine hours, the products manfactured the most will be overcosted and vice versa.

sale revenue ($125.10*460) $57,546 less:direct materials ($34.94 * 460) (16,072.40) less: direct labour ($49.21 * 460) (22,636.60) machine hours ($710,770 * (510/37,000)) (9,797.10) orders (39,690 *80/1800) (1,764) inspection (119,116*10/1940) (614) Product margin 6,661.90

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