abel corporation uses activity based costing

Activity data appear below: MHs Batches (Processing) (Supervising) Product M0 12,000 750 Product M5 500 750 _ Total 12,500 1,500 Finally, sales and direct cost data are combined with Processing and Supervising costs to determine product margins. The costs in the Other activity cost pool are not assigned to products.

The costs in those activity cost pools appear below: Processing $ 4,625 Supervising $ 31,500 Other $ 10,900 Processing costs are assigned to products using machine-hours (MHs) and Supervising costs are assigned to products using the number of batches. Overhead costs have already been allocated to the company's three activity cost pools-Processing, Supervising, and Other. Mirabile Corporation uses activity-based costing to compute product margins. Activity data for the company's two products follow: Activity: MHs Orders (Machining) (Order Filling) Product M0 1,430 1,240 Product H2 9,170 2,230 _ Total 10,600 3,470 The activity rate for the Order Filling activity cost pool under activity-based costing is closest to: Data used in the first stage allocations follow: Overhead costs: Equipment depreciation $ 84,000 Supervisory expense $ 5,500 Distribution of Resource Consumption Across Activity Cost Pools: Activity Cost Pools Machining Order Filling Other Equipment depreciation 0.50 0.20 0.30 Supervisory expense 0.50 0.10 0.40 Machining costs are assigned to products using machine-hours (MHs) and Order Filling costs are assigned to products using the number of orders. In the first stage allocations, costs in the two overhead accounts, equipment depreciation and supervisory expense, are allocated to three activity cost pools based on resource consumption. Meester Corporation has an activity-based costing system with three activity cost pools-Machining, Order Filling, and Other. Haupt Wedding Number of reception guests 73.00 185.00 Number of tiers on the cake 7.00 6.00 Cost of purchased decorations for cake $21.65 $73.75 Assuming that the company charges $636.53 for the Haupt wedding cake, what would be the overall margin on the order? Data concerning two recent orders appear below: Ericson Wed. The activity rates do not include the costs of purchased decorations such as miniature statues and wedding bells, which are accounted for separately. (Each wedding involves one order for a cake.) The activity rates include the costs of raw ingredients such as flour, sugar, eggs, and shortening. (Cakes with more tiers are more complex.) Finally, the activity rate for the Order-Related activity cost pool is $86.48 per order. (The greater the number of guests, the larger the cake.) The activity rate for the Complexity-Related cost pool is $33.51 per tier. The activity rate for the Size-Related activity cost pool is $0.96 per guest. The company has an activity-based costing system with three activity cost pools.

Meade Nuptial Bakery makes very elaborate wedding cakes to order. Twersky Wedding Number of reception guests 45 120 Number of tiers on the cake 3 5 Cost of purchased decorations for cake $28.40 $54.66 Assuming that all of the costs listed above are avoidable costs in the event that an order is turned down, what amount would the company have to charge for the Tijerina wedding cake to just break even? Data concerning two recent orders appear below: Tijerina Wed. (Each wedding involves one order.) The activity rates include the costs of raw ingredients such as flour, sugar, eggs, and shortening. The activity measure for the order-related cost pool is the number of orders. The measure of complexity is the number of tiers in the cake. The greater the number of guests, the larger the cake. The owner of the company has provided the following data concerning the activity rates in its activity-based costing system: Activity Cost Pools Activity Rate Size-related $1.15/guest Complexity-related $28.24/ tier Order-related $74.74/order The measure of activity for the size-related activity cost pool is the number of planned guests at the wedding reception. Nissley Wedding Fantasy Corporation makes very elaborate wedding cakes to order.

Abel corporation uses activity based costing