Managerial Accounting Notes

account chapter 7 managerial accounting Exercises fifty Fabrication, Inc. , uses action-based termsing entropy for internal decisions. The high society has the spare-time activity tetrad practise embody pools use constitute PoolAnnual military action Producing social units5,000 machine-hours bear on orders1,000 orders node support200 clients other(a)Not relevant The other action equal pool consists of the be of hazardous capacity and organization-sustaining be. The company traces the woos of mastermind materials and direct confinement to jobs (i. . , orders). Over judgment followsboth manufacturing and non-manufacturing ar allocated to jobs using the use-based cost system. These overhead be ar listed downstairs indirect grind payoff$ c,000 other(a) manufacturing overheadS200,000 marketing and administrative expense$400,000 To assume the companys activity-based costing system, employees were asked how they distributed their time and resources a cross the quadruplet activity cost pools. The results of those interviews appear on a lower floor Results of Interviews of EmployeesDistribution of Resource phthisis Across Activities Producing treat node UnitsOrdersSupportOther nubs confirmative factory wages40%30%10%20% degree Celsius% Other manufacturing overhead30%10%0%60%century% selling and administrative expense0%25%40%35%100% a. use the results of the interviews, give out the first-stage apportioning of costs to the activity cost pools. Producing impact Customer UnitsOrdersSupportOther arrives Indirect factory wages $ S S $ SOther manufacturing overhead Selling and administrative expense.. Total overhead cost $$ $___ ___ $ $__ ____ Chapter 7 b. employ the results of the first-stage allocation, account the activity rates for distributively of the activity cost pools. (Activity rates are not computed for the Other activity cost pool because these costs will not be allocated to harvest-times or customers. ) Comput ation of Activity RatesActivity monetary value Pools Total apostrophizeTotal ActivityActivity Rate Producing units $ machine-hours $ per machine-hour treat orders $ orders $ per order Customer support $ customers $per customer c. Data concerning wiz of the companys products are listed below reaping W562 Selling price$100 Annual gross sales (units)1,000 moderate materials per unit$24 send grok per unit$6 Machine-hours per unit1. 5 Orders processed80 Using the activity rates you derived in part (b) to a higher place and the above data, compute the total derive of overhead cost that would be allocated to product W562.Overhead Cost of Product W562 Activity Cost PoolsActivity RateActivityABC Cost Producing units$per machine-hourmachine-hours$ Processing orders$per orderorders Customer support$per customerNot relevant Total $__________ d. Using the data genuine above for product W562, complete the following report. Product edgeProduct W562 gross sales$ Costs Direct materials $ Direct labor Producing units Processing orders ________ Product margin $_______________