Chapter 7 calc Questions & Answers correct

Chapter 7 calc Questions & Answers correct Sabroso Chocoloate Company has two activities with the following costs. Setting up equipment $ 275,298 Baking costs $ 821,807 The cost of setting up equipment is driven by setup hours; baking costs are driven by oven hours. The company produces two products: Fudge and Cookies, which have the following information. Fudge Cookies Direct Materials & Direct Labor $476,931 $514,823 Units Produced 8,168 24,392 Setup hours 3,236 1,147 Oven hours 1,275 5,737 Ignoring ABC, what is the plantwide overhead rate using oven hours? 156.4611 ± 0.7 Response Feedback: The total cost of setting up equipment and cost of baking.... divided by total oven hours (Fudge oven hours plus Cookie oven hours. Figure 7-5. Rizzo Manufacturing produces two types of cameras: 35mm and digital. The cameras are produced using one continuous process. Four activities have been identified: machining, setups, receiving, and packing. Resource drivers have been used to assign costs to each activity. The overhead activities, their costs, and the other related data are as follows: Product Machine Hours Setups Receiving Orders Packing Orders 35mm 10,000 100 200 400 Digital 10,000 250 800 2,000 Costs $60,000 $40,000 $8,000 $24,000 Refer to Figure 7-5. Using an activity rate for receiving based on receiving orders, assign receiving costs to the 35mm camera. a. $1,600 Activity rate: $8,000 / 1,000 = $8 per receiving order Overhead assignment: $8.00 × 200 = $1,600 The moving activity has an expected cost of $160,000. Expected direct labor hours are 40,000, and the expected number of moves is 80,000. The best activity rate for moving is d. $2 per move. 160,000 / 80,000 = $2 Each move is an activity, and can be directly traced. Sabroso Chocoloate Company has two activities. The cost of setting up equipment is driven by setup hours; baking costs are driven by oven hours. The company produces two products: Fudge and Cookies, which have the following information. Fudge Cookies Direct Materials & Direct Labor $472,451 $527,609 Units Produced 8,236 25,661 Setup hours 4,607 1,169 Oven hours 1,301 5,012 Assigned Overhead $ 874,314 $ 301,459 What is the per unit cost for Fudge? 163.5217 ± 0.7 Response Feedback: (Direct Materials + Direct Labor + Assigned Overhead) / Number of units produced Sabroso Chocoloate Company has two activities. The cost of setting up equipment is driven by setup hours; baking costs are driven by oven hours. The company produces two products: Fudge and Cookies, which have the following information. Fudge Cookies Activity Rates Direct Materials & Direct Labor $409,029 $599,989 Units Produced 8,657 23,140 Setup hours 4,215 991 $ 57 Oven hours 1,433 5,630 $ 152 Plantwide Activity Rate $ 174 Using Activity-Based Costing, what is the total overhead assigned to Fudge? 458,071.0000 ± 10 Response Feedback: (Fudge setup hours Rate for setup hours)+ (Fudge oven hours Rate for oven hours) Sabroso Chocoloate Company has two activities. The cost of setting up equipment is driven by setup hours; baking costs are driven by oven hours. The company produces two products: Fudge and Cookies, which have the following information. Fudge Cookies Direct Materials & Direct Labor $460,751 $502,590 Units Produced 8,481 20,625 Setup hours 4,980 1,159 Oven hours 905 5,986 Assigned Overhead $ 841,088 $ 326,535 What is the per unit cost for Cookies? 40.2000 ± 0.7 Response Feedback: (Direct Materials + Direct Labor + Assigned Overhead) / Number of units produced Sabroso Chocoloate Company has two activities. The cost of setting up equipment is driven by setup hours; baking costs are driven by oven hours. The company produces two products: Fudge and Cookies, which have the following information. Fudge Cookies Direct Materials & Direct Labor $497,595 $521,821 Units Produced 7,083 24,344 Setup hours 3,723 1,602 Oven hours 1,218 5,997 Assigned Overhead $ 982,648 $ 308,319 What is the per unit cost for Fudge? 208.9853 ± 0.7 Response Feedback: (Direct Materials + Direct Labor + Assigned Overhead) / Number of units produced Sabroso Chocoloate Company has two activities. The cost of setting up equipment is driven by setup hours; baking costs are driven by oven hours. The company produces two products: Fudge and Cookies, which have the following information. Fudge Cookies Activity Rates Direct Materials & Direct Labor $413,996 $508,182 Units Produced 8,445 26,315 Setup hours 4,892 999 $ 58 Oven hours 913 4,127 $ 169 Plantwide Activity Rate $ 211 Using Activity-Based Costing, what is the total overhead assigned to Fudge? 438,033.0000 ± 10 Response Feedback: (Fudge setup hours Rate for setup hours)+ (Fudge oven hours Rate for oven hours) Sabroso Chocoloate Company has two activities with the following costs. Setting up equipment $ 253,718 Baking costs $ 836,226 The cost of setting up equipment is driven by setup hours; baking costs are driven by oven hours. The company produces two products: Fudge and Cookies, which have the following information. Fudge Cookies Direct Materials & Direct Labor $466,261 $517,750 Units Produced 9,251 24,755 Setup hours 4,382 1,153 Oven hours 1,118 5,208 Under Activity-Based Costing, what is the activity rate for setting up equipment? 45.8388 ± 0.7 Response Feedback: Cost of setting up equipment divided by total setup hours (Fudge setup hours plus Cookie setup hours. Figure 7-5. Rizzo Manufacturing produces two types of cameras: 35mm and digital. The cameras are produced using one continuous process. Four activities have been identified: machining, setups, receiving, and packing. Resource drivers have been used to assign costs to each activity. The overhead activities, their costs, and the other related data are as follows: Product Machine Hours Setups Receiving Orders Packing Orders 35mm 10,000 100 200 400 Digital 10,000 250 800 2,000 Costs $60,000 $40,000 $8,000 $24,000 Refer to Figure 7-5. Calculate a consumption ratio for setups on the digital cameras. c. 0.714 250 / 350 = 0.714 digital set up/mm Receiving provides 12,000 receiving hours and costs $60,000 per year. What is the activity rate for receiving? . $5 per receiving hour Rate: $60,000 / 12,000 = $5 per receiving hour Sabroso Chocoloate Company has two activities. The cost of setting up equipment is driven by setup hours; baking costs are driven by oven hours. The company produces two products: Fudge and Cookies, which have the following information. Fudge Cookies Activity Rates Direct Materials & Direct Labor $433,520 $563,617 Units Produced 8,579 25,593 Setup hours 3,958 1,544 $ 49 Oven hours 814 5,941 $ 130 Plantwide Activity Rate $ 226 Using Activity-Based Costing, what is the total overhead assigned to Cookies? 847,986.0000 ± 10 Response Feedback: (Cookie setup hours Rate for setup hours)+ (Cookie oven hours Rate for oven hours) Sabroso Chocoloate Company has two activities with the following costs. Setting up equipment $ 283,969 Baking costs $ 946,273 The cost of setting up equipment is driven by setup hours; baking costs are driven by oven hours. The company produces two products: Fudge and Cookies, which have the following information. Fudge Cookies Direct Materials & Direct Labor $455,020 $559,364 Units Produced 7,600 24,347 Setup hours 4,209 1,968 Oven hours 1,611 4,082 Ignoring ABC, what is the plantwide overhead rate using oven hours? 216.0973 ± 0.7 Response Feedback: The total cost of setting up equipment and cost of baking.... divided by total oven hours (Fudge oven hours plus Cookie oven hours. Sabroso Chocoloate Company has two activities with the following costs. Setting up equipment $ 263,030 Baking costs $ 967,247 The cost of setting up equipment is driven by setup hours; baking costs are driven by oven hours. The company produces two products: Fudge and Cookies, which have the following information. Fudge Cookies Direct Materials & Direct Labor $424,694 $543,979 Units Produced 7,233 27,870 Setup hours 3,221 931 Oven hours 1,074 4,020 Ignoring ABC, what is the plantwide overhead rate using oven hours? 241.5149 ± 0.7 Response Feedback: The total cost of setting up equipment and cost of baking.... divided by total oven hours (Fudge oven hours plus Cookie oven hours. Sabroso Chocoloate Company has two activities. The cost of setting up equipment is driven by setup hours; baking costs are driven by oven hours. The company produces two products: Fudge and Cookies, which have the following information. Fudge Cookies Activity Rates Direct Materials & Direct Labor $457,624 $596,086 Units Produced 9,503 23,880 Setup hours 4,242 1,313 $ 45 Oven hours 1,863 4,692 $ 154 Plantwide Activity Rate $ 155 Ignoring Activity-Based Costing and using the plantwide rate, which is based on oven hours, what is the total overhead assigned to Cookies? 727,260.0000 ± 10 Response Feedback: Plantwide rate times oven hours for Cookies.