ABC Trainer Assignments 1 . Ken’s Floor coverings sells carpet for both equally residential and business work with. To better estimate costs, the business recently adopted an activity-based costing system.
Last year, the corporation incurred three hundred, 000 in overhead costs. Based on an intense research of their firm, the following actions, allocation facets, and percentages of overhead costs were decided: Activity| Portion Base| Portion of Overhead Cost| Purchasing| Number of order orders| 25%| Materials processing| Number of rectangular feet| 50%| Sales| Range of sales orders| 25%|
The amount of activities pertaining to residential and business is really as follows: | Residential| | Business Total Total Overhead| Number of order orders| 700| | 500 1, 2 hundred 75, 000| Number of square feet| 4, 000, 000| | two, 000, 500 6, 500, 000 one hundred and fifty, 000 | Number of revenue orders| 400| | 90 500 75, 000| Necessary: A. | Calculate the total overhead that needs to be allocated to all the three actions. Number of Order $75, 1000, Number of sq ft $150, 000, Number of sales orders $75, 000. | | W. | Estimate the overhead rates for each of the three activities. Volume of purchase sixty two. 5, Quantity of square feet zero. 025, Number of sales orders 150| | | C. | If a particular non commercial job needs 4 obtain orders and 1 product sales order to get total of 1, 500 square feet of carpet, how much over head should be invested in the job? 4*62. 5 + 0. 025*1, 500+1*150 = $437. 50| 2 . Mountaineer Tents makes and markets heavy and light duty tents to various outdoor retailers. To better estimate costs, the company recently adopted an activity-based charging system.
A year ago, the company sustained $900, 500 in expenses. Based on a powerful study with their company, the subsequent activities, portion bases, and percentages of overhead costs were determined: Activity| Allocation Base| Proportion of Overhead Cost| Purchasing| Quantity of purchase orders| 55%| Inspections| Number of inspections| 20%| Sales| Number of sales orders| 25%| The number of activities for large and light obligation tents is just as follows: | Heavy-duty| | Light-duty| Number of purchase orders| 5, 000| | 4, 000| Range of inspections| three or more, 000| | 1, 000| Number of sales orders| 800| | 400| Required:
A. | Determine the total cost to do business that should be invested in each of the 3 activities. Volume of purchase four, 950, Quantity of inspection 800, Number of sales 300| | | N. | Estimate the overhead rates for each of the 3 activities. Quantity of purchase 1 . 82, Volume of inspection a few, Number of sales 4| | | C. | If a single sales order needs 10 obtain orders and 30 home inspections to fill up, how much expense should be placed on the buy? 1*4+10*1. 82+30*5 = 191. 82| three or more. The following over head cost information is available pertaining to Millennium Incorporation. for 2006: Activity| Allocation Base| Over head Cost|
Purchasing| Number of obtain orders| 300 dollar, 000| Equipment setups| Quantity of setups| a hundred and fifty, 000| Quality control| Volume of inspections| 55, 000| In the past year, 4, 500 purchase orders were issued, 8, 500 machine setups were performed, and two, 000 examinations were carried out. Required: A. | Compute the expense rates for each and every of the 3 activities. Getting 75. 00, Machine Setups 18. seventy five, Quality Control 25| | | W. | When a particular job requires twelve purchase purchases, 6 setups, and your five inspections to fill, just how much overhead ought to be applied to the task? | 10*75+6*18. 75+25*5 = 987. your five
