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ACC221exam3sp08key

# ACC221exam3sp08key - ACC 221 Cost Accounting Sample Exam 3...

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2. Ginger Corporation uses an activity-based costing system with three activity cost pools. The company has provided the following data concerning its costs and its activity based costing system: Costs: Wages and salaries ............. \$360,00 0 Depreciation ....................... 140,000 Utilities .............................. 160,000 Total ................................... \$660,00 0 Distribution of resource consumption: Activity Cost Pools Assembl y Setting Up Othe r Total Wages and salaries .............. 10% 80% 10% 100% Depreciation ........................ 5% 50% 45% 100% Utilities ................................ 15% 60% 25% 100% How much cost, in total, would be allocated in the first-stage allocation to the Setting Up activity cost pool? Wages and Salaries 360,000 * 0.8 = 288,000 Depreciation 140,000 * 0.5 = 70,000 Utilities 160,000 * 0.6 = 96,000 454,000 2
3. Radakovich Corporation has provided the following data from its activity-based costing system: Activity Cost Pool Total Cost Total Activity Assembly ..................... \$436,240 28,000 machine-hours Processing orders ......... \$60,896 1,600 orders Inspection ..................... \$82,767 1,410 inspection-hours Data concerning one of the company’s products, Product F60N, appear below: Selling price per unit ............................... \$126.6 0 Direct materials cost per unit .................. \$12.70 Direct labor cost per unit ........................ \$45.93 Annual unit production and sales ........... 230 Annual machine-hours ............................ 480 Annual orders ......................................... 50 Annual inspection hours ......................... 30 According to the activity-based costing system, the product margin for product F60N is: Activity Pool Total Cost Total Activity Activity Rate(Total Cost / Total Activity) Assembly \$436,240 28,000 MH 15.58/MH Processing Orders \$60,896 1,600 orders 38.06/order Inspection \$82,767 1,410 IH 58.70/IH Sales (126.60*230 units) 29,118.00 DM(12.70*230 units) (2,921.00) DL (45.93*230 units) (10,563.90) Assembly (15.58*480 MH) (7,478.40) Processing(38.06*50 orders) (1,903.00) Inspection (58.70*30 IH) (1,761.00) Product Margin 4,490.70 3

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