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Category > Accounting Posted 19 Dec 2017 My Price 10.00

activity cost pools and cost driver levels for the year

1. Columbus Co. has determined the following activity cost pools and cost driver levels for the year:

Activity Cost Pool                    Activity Cost                      Activity Cost Driver

machine setup                         $500,000                           11,500 setup hours

material handling                     $130,000                             2,500 tons of material

machine operation                  $475,000                            11,000 machine hours

The following data is for the production of one batch of product X:

units produced                    400

machine hours                        5

direct labor hours               180

direct labor costs               $6,000

direct materials cost          $50,000

tons of material                     14

setup hours                            6

Required:

Part A:  Determine the cost allocation rate for each activity. (round to two decimals.)

Part B: Using the cost allocation rate calculated in Part A allocate indirect manufacturing costs to each activity.

Part C: Calculate the total product cost for a single batch of product X.

Part D: Calculate the total product cost per unit of each product X.

 

 

Answers

(12)
Status NEW Posted 19 Dec 2017 03:12 PM My Price 10.00

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