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costacctg13_sm_ch05

# Laborcosts180 400200 200 indirectcostsallocated

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Unformatted text preview: ,000 70,000 35,000 \$255,000 \$345,000 ÷ 50,000 ÷100,000 \$ 5.10 \$ 3.45 \$3.00 \$3.00 1.00 5.10 \$9.10 1.00 3.45 \$7.45 5­9 5­21 (30 min.) Activity­based costing, service company. 1. Total indir ect costs = \$150,000 + \$90,000 + \$36,000 + \$40,000 + \$39,000 + \$48,000 = \$403,000 Total machine­hours = (400 ´ 10) + (200 ´ 10) = 6,000 Indirect cost rate per machine­hour = \$403,000 ¸ 6,000 = \$67.17 per machine­hour Simple Costing System Cost of supplies per job Direct manufacturing labor cost per job Indirect cost allocated to each job (10 machine hours ´ \$67.17 per machine hour) Total costs 2. Activity­based Costing System Q uantity of Cost Driver Consumed during 2007 (see column (1)) Standard Job (3) 4,000 Special Job (4) 2,000 Standard Job \$ 200.00 180.00 671.70 \$1,051.70 Special Job \$ 250.00 200.00 671.70 \$1,121.70 Activity (1) Machine operations (400 jobs ´ 10 mach. hrs. per job; 200 jobs ´ 10 mach. hrs. per job) Setups (4 ´ 400; 7 ´ 200) Purchase orders (given) Design Marketing Administration (\$180 ´ 400; \$200 ´ 200) Cost Driver (2) machine hours Total Cost of Activity (given) (5) \$150,000 Allocation Rate (6) = (5) ¸ ((3) + (4)), or...
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