itiipp D uy BonesDry Bones writing Ts TuoalsW D Auto Zoom Determine the activity

Question

itiipp D uy BonesDry Bones writing Ts TuoalsW D Auto Zoom Determine the activity cost of converting the raw materials into 1 Two-Stage ABC for Manufacturing Bismark Inc., a large manufacturer of heavy equipment components, has determined the following activity cost pools and cost driver levels for the year: 00 fireplace inserts M6-16- L02 MBC Activity Cost Pool Cost Activity Cost Driver Machine setup Material handling Machine operation $600,000 15,000 setup hours 90,000 3,000 tons of materials 420,00012,000 machine hours The following data are for the production of single batches of two products, Camshafts and Swing Drives during the month of August: Chapter 6 Activity-Based Costing, Customer Profitability, and Activity-Based Management 230 Camshafts Swing Drives .0 (1).mp4

Explanation / Answer

Calculate the activity rates as follows:

Compute the overhead cost assigned to each product as follows:

Calculate the product cost as follows:

Activity cost pool Activity cost Activity cost driver Activity rate (A) (B) (A/B) Machine setup 600000 15000 setup hours 40 per set up Material handling 90000 3000 tons of materials 30 per ton of material Machine operation 420000 12000 machine hours 35 per machine hour

Related Questions

Navigate

• Browse (All)
• Browse I
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.