Wecker Corporation uses the following activity rates from its activity-based cos
ID: 2567164 • Letter: W
Question
Wecker Corporation uses the following activity rates from its activity-based costing to assign 13, overhead costs to products Activity Rate Activity Cost Pools $79.50 per batch $7131 per customer order Setting up batches Processing customer orders S7.06 per assembly hour Assembling products Data concerning two products appear below: Product A09X 12 Product V09x Number of batches Number of customer orders Number of assembly hours 20 492 697 How much overhead cost would be assigned to Product VO9X using the activity-based costing system? A. $157.87 B. $91,722.47 C. $10,385.22 D. S5,485.50 Multiple choice se the following information to Austad Corporation company has provided the following data concerning its activity-based costing system: answer the next twe questions: costing to determine product costs for external financial reports. The uses activity-based Activity Cost Pools (and Activity Measures) Machine related (machine-hours) Batch General factory (direct labor-hours) Total Cost 67,500 $273,700 $204,000 Activity Cost Pools Total Activity Product X 4,000 3,000 1,000 Product Y 1,000 4,000 7,000 Total 5,000 7,000 8,000 Machine related Batch setup General factory. 14 A. $91.20 B. $68.40 C. $77.90 D. $39.10 The activity rate for the batch setup activity cost pool is closest to: 15, A. $272,600 B. $196,800 C.$234.000 D. $274,000 The total amount of overhead cost allocated to Product X would be closest to:Explanation / Answer
Product X
Product Y
Total
Machine Hrs
4,000
1,000
5,000
Set ups
3,000
4,000
7,000
Direct Labor Hrs
1,000
7,000
8,000
Computation of Cost per Machine hr
Particulars
Amount
Machine Related
$ 67,500
Total Machine hrs
5,000
Cost per Machine Hr
$ 13.50
Computation of Cost per Batch
Particulars
Amount
Batch Set up
$ 273,700
Total Set ups
7,000
Cost per Machine Hr
$ 39.10
Computation of General Factory
Particulars
Amount
General Factory
$ 204,000
Total Direct Labor hrs
8,000
Cost per Direct labor hr
$ 25.50
14) Cost per Set up=$39.10
Hence Option D Correct
15)
Computation of Overhead for Product X
Activity Rate per Activity
No of Activities
Amount
Machine
$ 13.50
4,000
$ 54,000
Batch Setup
$ 39.10
3,000
$ 117,300
General Factory
$ 25.50
1,000
$ 25,500
Total
$ 196,800
Hence Option B Correct
Product X
Product Y
Total
Machine Hrs
4,000
1,000
5,000
Set ups
3,000
4,000
7,000
Direct Labor Hrs
1,000
7,000
8,000
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