Chapter 3 - Lecture Problems with solutions - 2009

Chapter 3 - Lecture Problems with solutions - 2009 -...

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Chapter 3 Lecture Problems Prepared by Bill Foley 06/05/2010 Page 1 Problem #1 - Activity cost pools that might be found in a company using activity-based costing are listed below. For each activity, place an X under the proper heading to indicate whether the activity would be unit-level, batch-level, product-level or facility-level. Unit- Batch - Product - Facility - Item # Activity Cost Pool Level - Level Level Level a Manage parts inventory X b Assemble products X c Use factory building X d Issue purchase orders X e Process products on machin X f Heat the factory building X g Test product prototypes X h Issue production orders X i Design products X j Set up machines X k Run personnel department X
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Chapter 3 Lecture Problems Prepared by Bill Foley 06/05/2010 Page 2 Problem #2 - Mead Company uses activity-based costing to compute unit product costs for external financial reports. The company manufactures two products - the Regular Model and the Super Model. During the coming year the company expects to product 20,000 units of the Regular Model and 5,000 units of the Super Model. Other selected data relating to the coming year are listed below. Compute the overhead cost per unit for each product by filling in the missing data in the schedules
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Chapter 3 - Lecture Problems with solutions - 2009 -...

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