Managerial Accounting Notes

story chapter 7 managerial accounting Exercises Lambert Fabrication, Inc. , uses military action-based greeting data for cozy decisions. The company has the following four employment approach pools Activity terms PoolAnnual Activity Producing wholes5,000 machine-hours Processing orders1,000 orders node support200 customers OtherNot applicable The Other activity follow pool consists of the costs of idle capacity and organization-sustaining costs. The company traces the costs of command materials and direct labor to jobs (i. . , orders). Overhead costsboth manufacturing and non-manufacturingare allocated to jobs use the activity-based be system. These overhead costs are listed downstairs Indirect pulverisation wages$100,000 Other manufacturing overheadS200,000 Selling and administrative expense$400,000 To develop the companys activity-based costing system, employees were asked how they distributed their time and resources across the four activity cost pools. The results o f those interviews appear below Results of Interviews of EmployeesDistribution of Resource Consumption Across Activities Producing Processing customer UnitsOrdersSupportOtherTotals Indirect grind wages40%30%10%20%100% Other manufacturing overhead30%10%0%60%100% Selling and administrative expense0%25%40%35%100% a. using the results of the interviews, carry out the first-stage allocation of costs to the activity cost pools. Producing Processing Customer UnitsOrdersSupportOtherTotals Indirect factory wages $ S S $ SOther manufacturing overhead Selling and administrative expense.. Total overhead cost $$ $___ ___ $ $__ ____ Chapter 7 b. Using the results of the first-stage allocation, estimate the activity rates for each of the activity cost pools. (Activity rates are not computed for the Other activity cost pool because these costs will not be allocated to increases or customers. ) enumeration of Activity RatesActivity Cost Pools Total CostTotal ActivityActivity Rate Producing uni ts $ machine-hours $ per machine-hour Processing orders $ orders $ per order Customer support $ customers $per customer c. Data concerning one of the companys products are listed below ingathering W562 Selling price$100 Annual sales (units)1,000 Direct materials per unit$24 Direct labor per unit$6 Machine-hours per unit1. 5 Orders processed80 Using the activity rates you derived in part (b) higher up and the above data, compute the total amount of overhead cost that would be allocated to product W562.Overhead Cost of Product W562 Activity Cost PoolsActivity RateActivityABC Cost Producing units$per machine-hourmachine-hours$ Processing orders$per orderorders Customer support$per customerNot applicable Total $__________ d. Using the data developed above for product W562, complete the following report. Product MarginProduct W562 sales$ Costs Direct materials$ Direct labor Producing units Processing orders ________ Product moulding $_______________