Académique Documents
Professionnel Documents
Culture Documents
1 B
2 D
3 C
4 D
5 C
6 D
7 D
8 D
9 D
10 D
11 D
12 D
13 C
14 C
15 D
16 A
17 B
18 C
Solutions:
8 Activity cost pools Activity cost rate Activity
Serving clients 30 1
Machine set-up 10 2
Printing 2.5 500
9 Salaries 12000
Computer Lease 4000
Telecommunication charges 36000
52000 D
11 Salaries 12000
Computer Lease 4000
Telecommunication charges 27000
43000 D
12 Set-up cost to be allocated 80000
AB BC
Units produced 12000 18000
Batch size in units 20 40
Cost
200
300
200
200
900 A
Cost
200
600
300
200
1300
Cost
400
600
400
400
1800
Given:
Activity cost pool Producing units Processing units Customer support Other
Indirect factory wages 40% 30% 20% 10%
Other factory overhead 20% 30% 50%
Selling and admin exp 30% 20% 50%
A.
Allocation:
Activity cost pool Producing units Processing units Customer support Other
Indirect factory wages 32000 24000 16000 8000
Other factory overhead 30000 45000 75000
Selling and admin exp 60000 40000 100000
62000 129000 56000 183000
B.
Activity cost pool Annual Activity Overhead costs Activity Rate
Indirect factory wages 3000 machine hours 62000 20.67
Other factory overhead 2000 orders 129000 64.5
Selling and admin exp 500 customers 56000 112
247000
D.
Sales 288000
Cost:
Direct materials 60000
Direct labor 24000
Manufacturing overhead 46450 130450
Gross Margin of Product LEX 157550
Total Cost
100% 80000
100% 150000
100% 200000
430000
Total
80000
150000
200000
430000