Module 3 Homework - ,thefollowingaretobe completed...

To demonstrate your mastery of this module’s readings, the following are to be
completed:
From the Financial and Management Accounting text:
•
P2, P4, and P5 from Chapter 18
Activity-Based Costing
P 2. Boulware Products, Inc., produces printers for wholesale distributors. It
has just completed packaging an order from Shawl Company for 150 print-
ers. Before the order is shipped, the controller wants to compare the unit
costs computed under the company’s new activity-based costing system
with the unit costs computed under its traditional costing system. Boul-
ware’s traditional costing system assigned overhead costs at a rate of 240
percent of direct labor cost.
Data for the Shawl order are as follows: direct materials, $17,552; pur-
chased parts, $14,856; direct labor hours, 140; and average direct labor pay
rate per hour, $17.
Data for activity-based costing related to processing direct materials
and purchased parts for the Shawl order are as follows:
Activity Cost Driver Activity Cost Rate Activity Usage
Engineering Engineering $28 per engineering