- Exercise 4 2 Algo Compute Activity Rates L04 2 The Following Information Applies To The Questions Displayed Below 1 (37.1 KiB) Viewed 96 times
- Exercise 4 2 Algo Compute Activity Rates L04 2 The Following Information Applies To The Questions Displayed Below 2 (37.7 KiB) Viewed 96 times
- Exercise 4 2 Algo Compute Activity Rates L04 2 The Following Information Applies To The Questions Displayed Below 3 (43.97 KiB) Viewed 96 times
Exercise 4-2 (Algo) Compute Activity Rates (L04-2] [The following Information applies to the questions displayed below) Rustafson Corporation is a diversified manufacturer of consumer goods. The company's activity-based costing system has the following seven activity cost pools: Estimated Activity Cost Pool Overhead Cost Expected Activity Labor-related $ 22,800 4,000 direct labor-hours Machine-related $ 12,500 10,000 machine-hours Machine setups $ 25,600 800 setups Production orders $ 14,100 300 orders Product testing $ 38,000 1,000 tests Packaging $ 61,200 3,400 packages General factory $ 57,600 4,000 direct labor-hours Exercise 4-2 Part 2 (Algo) 2. Compute the company's predetermined overhead rate, assuming that the company uses a single plantwide predetermined overhead rate based on direct labor-hours. (Round your answer to 2 decimal places.) Predetermined overhead rate por DLH
Gino's Restaurant is a popular restaurant in Boston, Massachusetts. The owner of the restaurant has been trying to better understand costs at the restaurant and has hired a student intern to conduct an activity-based costing study. The intern, in consultation with the owner, identified the following major activities: Activity Cost Pool Serving a party of diners Activity Measure Number of parties served Serving a diner Number of diners served Serving drinks Number of drinks ordered A group of diners who ask to sit at the same table is counted as a party. Some costs, such as the costs of cleaning linen, are the same whether one person is at a table or the table is full. Other costs, such as washing dishes, depend on the number of diners served. Data concerning these activities are shown below Serving a Party Serving a Diner Serving Drinks Total Total cost $ 65,700 $ 77,000 $ 81,000 $ 223,700 Total activity 9,000 parties 10,000 diners 45,000 drinks Prior to the activity-based costing study, the owner knew very little about the costs of the restaurant. She knew that the total cost for the month was $223,700 and that 10.000 diners had been served. Therefore, the average cost per diner was $22.37 ($223,700+ 10,000 diners - $22.37 per diner). Required: 1. Compute the activity rates for each of the three activities. 2. According to the activity-based costing system, what is the total cost of serving each of the following parties of olders? a. A party of four diners who order three drinks in total b. A party of two diners who do not ordet any drinks c. A lone diner who orders two drinks 3. Convert the total costs you computed in part (2) above to costs per diner. In other words, what is the average cost per dine for serving each of the following parties? a. A party of four diners who order three drinks in total b. A party of two diners who do not order any drinks Alone diner who orders two drinks