26) Managerial Financial Accounting Assignments AP6-12 Solution

26 Managerial - AP6-12 Activity-Based Costing[LO 5 The Divine Cheesecake Shoppe is a national bakery that is known for its strawberry cheesecake It

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AP6-12
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Activity-Based Costing [LO 5] The Divine Cheesecake Shoppe is a national bakery that is known for its strawberry cheesecake. It also makes 12 different kinds of cheesecake as well as many other types of bakery items. It has recently adopted an activity-based costing system to assign manufacturing overhead to products. The following data relate to its strawberry cheesecake and the ABC cost pools: Strawberry Cheesecake: Annual production 18,400 units Direct materials per unit $8 Direct labor per unit $4 Cost Pool Cost Cost Driver Materials ordering $91,300 Number of purchase orders Materials inspection 76,760 Number of receiving reports Equipment setup 136,500 Number of setups Quality control 75,900 Number of inspections Other 180,630 Direct labor cost Total mfg. overhead $561,090
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Annual activity information related to cost drivers: Cost Pool All Products Strawberry Cheesecake Materials ordering 8,300 orders 102 Materials inspection 380 receiving reports 64 Equipment setup 3,500 setups 32 Quality control 3,300 inspections 153 Other $2,007,000 direct labor $73,600
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Calculate the overhead rate per unit of activity for each of the five cost pools. (Round other cost
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This note was uploaded on 06/21/2011 for the course MANAGERIAL MT425 taught by Professor Hodgson,k during the Spring '11 term at Kaplan University.

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26 Managerial - AP6-12 Activity-Based Costing[LO 5 The Divine Cheesecake Shoppe is a national bakery that is known for its strawberry cheesecake It

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