ch 8 hw2 - Steve Avery February 6 2006 Acc 250b Chapter 8...

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Steve Avery February 6, 2006 Acc. 250b Chapter 8 Homework Problem 8-16: 1. Activity Cost Pools Total Cost Total Activity Activity Rate Serving a party $33,000 6,000 parties $5.5 /party Serving dinners 138,000 15,000 dinners 9.2 /dinner Serving drinks 24,000 10,000 drinks 2.4 /drink a) 4(9.2) + 3(2.4) + 1(5.5) = $49.50 b) 2(9.2) + 1(5.5) = $23.90 c) 1(9.2) + 2(2.4) + 1(5.5) = $19.50 2. a) 49.50/4 = $12.38 per dinner b) 23.90/2 = $11.95 per dinner c) 19.50/1 = $19.50 per dinner 3. Because they have a varying amount of drinks. The cost per serving a party is constant, but with the three different drink orders, the cost per dinner will change. Problem 8-20: 1. Volume Rel. Order Rel. Cust. Supp. Other Total Wages/salar. 120,000 90,000 60,000 30,000 $300,000 Other OH 30,000 10,000 20,000 40,000 100,000 Totals 150,000 100,000 80,000 70,000 400,000 2. Activity Cost Pools Total Cost Total Activity Activity Rate Volume Related $150,000 20,000 DLH’s $7.5 /DLH Order Related 100,000 400 orders 250 /order Customer Support 80,000 200 customers 400 /customer Other 70,000 N/A N/A
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3. Activity Cost Pools Activity Rate Activity ABC Cost Volume Related $7.5 20 $150 Order Related 250 1 250 Total OH $400 4. Sales $3,000 Product Margin
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