connect. ACG 2071 Manageria 02089 Online ACCOUNTING Question 3 (of 30) value 3.3

Question

connect. ACG 2071 Manageria 02089 Online ACCOUNTING Question 3 (of 30) value 3.33 points Magnolia Company has identified seven activities as part of its manufacturing process and chosen corresponding activity drivers for each activity The chart below lists the total cost of each activity, the amount of activity driver used for each of Magnolia's two products, the activity rate, and the activity cost assigned to each product Fill in the blanks below Driver Usage Activity Activity Activity Cost Activity Driver Prod. 1 Prod. 2 Activity Rate Design Preparation $ 50,560 Labor hours Machining $ 141,480 Machine hours Finishing Inspection 960 1,360 3,140 hour hour 27 hour 44 /batch 16 unit 307 /order $ 58,000 Design time s 25,120 43,470 Batches 210 320 s Units $ 10,720 16,320 Orders- 50 $ - 13 201 Shipping 12,100 Packages 3,300 0 Type here to search

Explanation / Answer

Driver Usage Activity Cost Activity Driver Prod. 1 Prod. 2 Activity Rate Activity Cost: Prod 1 Activity Cost: Prod 2 Design 58000 Design time 960 1360 25 /hour 24000 34000 (58000/(960+1360)) (25*960) (25*1360) Preparation 50560 Labor hours 3140 3180 8 /hour 25120 25440 ((50560-25120)/8) (25120/3140) (3180*8) Machining 141480 Machine hours 1610 3630 27 /hour 43470 98010 (43470/27) ((141480-43470)/27) (3630*27) Finishing 23320 Batches 210 320 44 /batch 9240 14080 (9240+14080) (210*44) (320*44) Inspection 27040 Units 670 1020 16 /unit 10720 16320 (10720+16320) (10720/16) (16320/16) Packaging 28551 Orders 43 50 307 /order 13201 15350 (13201+15350) (13201/307) (50*307) Shipping 12100 Packages 88 33 100 /package 8800 3300 (3300/100) (8800/88) (12100-3300)

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