Home / Questions / Armstrong Company uses activity-based costing to calculate product costs
Armstrong Company uses activity-based costing to calculate product costs.
A.Calculate the per unit product cost for a mountain bike.
B.Calculate the per unit product cost for a racing bike.
C.Assume Armstrong Company adds 40% to the cost of a mountain bike and 35% to the cost of a racing bike obtain the selling prices. Calculate the selling prices for a mountain bike and a racing bike.
8.Randy Company produces candy sticks (hooked and straight). Both products pass through two producing departments. The hooked stick’s production is much more labour-intensive than the straight sticks. The straight stick is also more popular. The following data have been gathered for the two products:
Product Data
HookedStraight
Units produced per year200,0002,000,000
Machine hours10,00040,000
Packing orders30,00030,000
Randy has decided to used activity-based costing and has developed two types of activities, machine related (based on machine hours), and other overhead (based on packing orders). Machine-related costs equal $160,000. Other overhead costs equal $240,000.
A.Calculate the activity rate for machine-related costs based on machine hours.
B.Calculate the activity rate for other overhead costs based on packing orders.
C.Using the two activity rates, calculate the overhead cost per unit for hooked sticks. (Carry out computations to three decimal places.)
D.Using the two activity rates, calculate the overhead cost per unit for straight sticks. (Carry out computations to three decimal places.)
Sallisaw Savings & Loan has requested an analysis of chequing account profitability by customer type. Customers are categorized according to size of their account: low balances, medium balances, and high balances. The activities associated with the three different customer categories and their associated annual costs are as follows:
Opening and closing statements$ 100,000
Issuing monthly statements$ 150,000
Processing transactions$1,025,000
Customer inquiries$ 200,000
Providing ATM services$ 560,000
Total cost$2,035,000
Additional data concerning the usage of the activities by the various customers are also provided:
Account Balance
Low Medium High
Number of accounts opened/closed7,5001,5001,000
Number of statements issued225,00050,00025,000
Processing transactions9,000,0001,000,000250,000
Number of telephone minutes500,000300,000200,000
Number of ATM transactions675,000100,00025,000
Number of chequing accounts19,0004,0002,000
9.Refer to Sallisaw Savings & Loan.
A.Calculate the total number of chequing accounts.
B.Calculate the yearly overall cost per chequing account.
C.Calculate the monthly overall cost per chequing account.
Mar 13 2020 View more View Less
List out and discuss the applications of Artificial Intelligence in the Retail and CPG sector" Guidelines : The word limit is 200 words. to reflect on and respond to the ...
Apr 13 2020Government spending can be divided into two ___.
Jul 07 2021Test-Maha Ali,hi Economics Spring 18-AOmer Quiz: Chapter 1 Check Your Understanding Assignment This 1 pt I "6of18(15 complete) ? | Hamad is a biochernistry student who is...
Apr 14 2020Revising Messages: Conciseness Rephrase the following in fewer words: a. In the near future b. In the event that c. In order that d. For the purpose of e. With regard to...
Aug 16 2020the specific tools that the government has at its disposal that it can be used to stabilize the economy
Aug 18 2021Punctuate the following groups of words as single sentences. Add commas and semicolons. Do not add words or periods to create new sentences.Jerry looked up names Andrea a...
Jul 14 2021A system is composed of I mole of a particular substance. Two thermodynamic states, designated as A and B, lie on the locus = constant. The following properties of the s...
Jun 09 2020Distinguish between a codon and an anticodon.
Jun 26 2021Following a decline in cigarette sales, L & M, Inc., hired J. Gfeller as vice president of sales and charged him to turn around the sales decline. After receiving an anal...
Aug 08 2021Is the molecular orbital of NO diamagnetic or paramagnetic?
Jul 27 2021