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  • Additonal - Chapter 5

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    Gega XachidE
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    This document contains explanations and calculations for various accounting and cost allocation problems. It includes calculations of billing costs, printing costs per page, labor costs per direct labor hour, cost per unit for sweatshirts, profit per unit for a product, activity rates for setups and inspections, supervision and machine maintenance cost driver rates, and facility rent cost driver rate. It also includes calculations of costs per design change, setup, and inspection.

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    Additonal - Chapter 5 (1)

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    This document contains explanations and calculations for various accounting and cost allocation problems. It includes calculations of billing costs, printing costs per page, labor costs per direct labor hour, cost per unit for sweatshirts, profit per unit for a product, activity rates for setups and inspections, supervision and machine maintenance cost driver rates, and facility rent cost driver rate. It also includes calculations of costs per design change, setup, and inspection.

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    4 views19 pages

    Additonal - Chapter 5

    Uploaded by

    Gega XachidE
    This document contains explanations and calculations for various accounting and cost allocation problems. It includes calculations of billing costs, printing costs per page, labor costs per direct labor hour, cost per unit for sweatshirts, profit per unit for a product, activity rates for setups and inspections, supervision and machine maintenance cost driver rates, and facility rent cost driver rate. It also includes calculations of costs per design change, setup, and inspection.

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    of 19

    Answer: C

    Explanation: C) Billing costs - Department B = ($300,000 ÷ 6,000,000) × 750,000 = $37,500


    Explanation: A) ($56,000 / 3,500 invoices) × 100 invoices = $1,600
    Explanation: B) $0.12 per page = ($1,920,000 / 16,000,000 pages)
    $109,890 / (54,000 dlh + 45,000 dlh) = $1.11 per dlh × 45,000 dlh = $49,950;
    $28,800 + $49,950 = $78,750
    $29,250 + $68,160 = $97,410
    $97,410 / 30,000 sweatshirts = $3.25
    Explanation: C) [50,000 ($20.00 - $2.00 - $4.50 - $4.50)] - $220,300 = $229,700 / 50,000 = $4.59
    Explanation: B) Setups activity-cost driver rate = $257,040 ÷ 45,900 setups = $5.60 per setup
    Explanation: C) Inspections activity-cost driver rate = $133,920 ÷ 21,600 inspections = $6.20 per inspection
    6.20 per inspection
    Explanation: C) Supervision cost driver rate = 312,000 ÷ 780,000 dlh = $0.40 per dlh
    Machine maintenance cost driver rate = $135,800 ÷ 970,000 mh = $0.14 per mh
    Facility rent cost driver rate = $200,000 ÷ 125,000 sq ft = $1.60 per sq ft
    Explanation$633.33 per change = ($190,000 / 300 design changes)
    Setups: $410.00 per setup = ($1,640,000 / 4,000 setups)
    Inspections$6.36 per inspection = ($70,000 / 11,000 inspections)
    Diff: 3

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