Can I get some help with these activity baced problems? thanks 1. Feldpausch Cor
ID: 2558035 • Letter: C
Question
Can I get some help with these activity baced problems? thanks
1. Feldpausch Corporation has provided the following data from its activity-based costing system:
Activity Cost Pool Total Cost Total Activity
Assembly $1,282,140 61,200 Machine hrs.
Processing orders $53,958 2,040 Orders
Inspection $ 181,350 2,340 Insection hrs
The Company makes 1,100 units of product W26B a year, requiring a total of 1,200 macine hrs, and 31 inspection- hours per year. The Products direct materials cost is $50.89 per unit and its direct labor cost is $20.56 per unit. the product sells for $113.30 per unit.
According to the activity-based costing system, the product margin for the product W26B is:
a. $18,492.50
b. $17,430.05
c.$15,027.55
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2. Mirabil Corporation uses activity based costing to compute product margins. Overhaed cost have already been allocated tot he companys three activity cost pools--Processing, Supervising, and Other. The costs in those activity cost pools apper below:
Processing $ 6,300
Supervising $ 22,320
Other $11,400
Processing costs are assigned to products using machine- hours (MHs) and supervising costs are assigned to products using the number of batches. the cost in the other activity cost pool are not assigned to prducts.
Activity data appear below:
MHs (processing) Batches (supervising)
Product M0 14,250 450
Product M5 750 450
Total 15,000 900
Finally, sales and direct cost data are compined with processing and supervising costs to determin product margins
Product M0 Product M5
Sales (total) $82,600 $94,900
Dirct Materials (total) $29,500 $32,400
Direct labor (total) $28,800 $42,700
What is the product margin for M5 under the activity-based costing?
a. $7,155
b.$8,325
c. $19,800
Explanation / Answer
2.
ABC system Estimated cost Cost driver Cost per driver Assembly 1282140 61200 20.95 Processing orders 53958 2040 26.45 Inspection 181350 2340 77.50 1517448 W26B Cost driver Total cost Assembly 20.95 1200 25140.00 Processing orders 26.45 0 0.00 Inspection 77.50 31 2402.50 Total overheads 27542.50 Per unit amount Sales value 113.3 124630.00 Cost Direct material 50.89 55979.00 Direct labor 20.56 22616.00 Overheads 27542.50 Total cost 106137.5 Product margin 18492.5Related Questions
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