How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask Linda_us Your Own Question

Linda_us, Finance, Accounts & Homework Tutor
Category: Homework
Satisfied Customers: 7291
Experience:  Post Graduate Diploma in Management (MBA)
Type Your Homework Question Here...
Linda_us is online now
A new question is answered every 9 seconds

1. The following is a list of activities that occur for a company

Resolved Question:

1. The following is a list of activities that occur for a company that sells many different types of products. Please classify each as either unit-level (U), batch level (B), product level (P), or organization sustaining activity (O).
a. Packing labor wages
b. Materials-handling labor wages
c. Part administrators’ salaries
d. Plant management salaries
e. Production scheduling staff salaries
f. Cost of serving production equipment, based on hours used
g. Property taxes of a plant site
h. Production expediters’ salaries
i. Insurancefor plant facility
j. Plant security
k. Production workers’ training
l. Cost of electricity to run production equipment

2. Shambu Shoes is in the business of manufacturing basketball shoes. Accordingly the company uses the six activity cost pools listed below:
Activity Cost Pool Activity Measure
Maintenance Machine Hours
Setups Setup Hours
Cutting Supervision Setup Hours
Cutting Depreciation Machine Hours
Assembly supervision Direct Labor hours
Assembly Depreciation Machine Hours
The company has already carried out its first stage allocations of costs. The company’s annual costs and activities are summarized as follows:
Activity Cost Pool Estimated Overhead Cost Expected Activity
Maintenance $150,000 50,000 Machine hours
Setups $450,000 300 setup hours
Cutting Supervision $270,000 300 setup hours
Cutting Depreciation $160,000 80,000 Machine Hours
Assembly Supervision $160,000 32,000 Direct Labor hrs
Assembly Depreciation $20,000 80,000 Machine Hours
Compute the activity rate for each of the activity cost pools: Show computations
a. Maintenance
b. Setups
c. Cutting supervision
d. Cutting depreciation
e. Assembly supervision
f. Assembly depreciation

3. DS Company has identified the following cost pools and activity rates
Activity Cost Pool Activity Rate
Supporting direct labor $4 per direct labor hour
Machine processing $3 per machine hour
Machine setups $30 per setup
Production orders $11 per order
Shipments $98 per shipment
Product sustaining $750 per product

Activity data have been supplied for the following products:
Total Expected Activity
D130 S150
Direct labor hours 2,500 300
Machine hours 4,300 250
Machine Setups 7 2
Production orders 3 2
Shipments 9 4
Products sustaining 2 1

Determine the total overhead cost that would be assigned to each of the products listed above in the activity based costing system: show computations and details

a. D130
b. S150

4. Statues Inc. has the following sales budget for the second of the current year:
April May June Total
Budgeted sales $250,000 $340,000 $590,000 $1,180,000
From past experience the company has learned that 10% of a month’s sales are collected in the month of sale, another 60% are collected in the month following sale, and the remaining 30% are collected in the second month following sale. Bad debts are negligible and can be ignored. February sales totaled $150,000 and March Sales totaled $220,000.
For each of the following months, calculate the amount of projected cash collections: Show solutions and related details.
A. April
B. May
C. June

5. Valentino Company had the following budgeted sales over the last 4 months of the year:
Sales in Units
October 10,000
November 25,000
December 35,000
January 46,000
The company is now in the process of preparing a production budget for the forth quarter. Past experience has shown that end of the month inventories of finished good must equal 20% of the next month’s sales.
The inventory at the end of September is 2,000 units
For each of the following months calculate the number of units that need to be produced: show computations and related details
a. October
b. November
c. December

Read more: 1. The following is a list of activities that occur for a company - JustAnswer
Submitted: 5 years ago.
Category: Homework
Expert:  Linda_us replied 5 years ago.

You need to spend $3 to view this post. Add Funds to your account and buy credits.
Linda_us and 5 other Homework Specialists are ready to help you