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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This note was uploaded on 10/11/2010 for the course ACCT 321 taught by Professor Cole during the Spring '10 term at University of Miami.

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