Adria Company recently implemented an activity based costing system. At the beginning of the year, management made the following estimates of cost and activity in the company%u2019s five activity cost pools:
|
Activity Cost Pool |
Activity |
Expected |
Expected |
||
|
Labor related |
Direct labor hours |
$ |
199,500 |
35,000 |
DLHs |
|
Purchase orders |
Number of orders |
$ |
70,920 |
900 |
orders |
|
Material receipts |
Number of receipts |
$ |
159,600 |
1,400 |
receipts |
|
Relay assembly |
Number of relays |
$ |
304,500 |
10,500 |
relays |
|
General factory |
Machine hours |
$ |
770,000 |
70,000 |
MHs |
|
|
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3. value:
7.00 points
| Required: | |
| 1. | Compute the activity rate for each of the activity cost pools.(Round your answer to 2 decimal places.) |
| Activity Cost Pool | Activity Rate | |
| Labor related | $ | per DLH |
| Purchase orders | $ | per order |
| Material receipts | $ | per receipt |
| Relay assembly | $ | per relay |
| General factory | $ | per MH |
|
|
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- eBook: USING ACTIVITY BASED COSTING %u2013 LO 2
- eBook: USING ACTIVITY BASED COSTING %u2013 LO 3
- eBook: USING ACTIVITY BASED COSTING %u2013 LO 4
| Worksheet | Learning Objective: 03 02 Compute activity rates for an activity based costing system. | Learning Objective: 03 04 Contrast the product costs computed under activity based costing and conventional costing methods. |
| Difficulty: Hard | Learning Objective: 03 03 Compute product costs using activity based costing. |
value:
8.00 points
| 2. | The expected activity for the year was distributed among the company’s four products as follows: |
| Expected Activity | ||||
|
|
||||
| Activity Cost Pool | Product A | Product B | Product C | Product D |
| Labor related (DLHs) | 6,300 | 7,300 | 9,750 | 8,650 |
| Production orders (orders) | 135 | 295 | 75 | 445 |
| Material receipts (receipts) | 390 | 175 | 210 | 525 |
| Relay assembly (relay) | 0 | 4,350 | 0 | 7,150 |
| General factory (MHs) | 9,000 | 21,700 | 16,700 | 20,600 |
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| Using the ABC data, determine the total amount of overhead cost assigned to each product. (Do not round intermediate calculations. Round your answers to the nearest dollar amount.) |
| Product A | $ |
| Product B | $ |
| Product C | $ |
| Product D | $ |