Attempt 1
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Question 1 point
Maxx Inc. has provided the following data from its activity-based costing system:
Activity Cost Pools Total Cost Total Activity
Designing products $387,300 6,310 product design hours
Setting up batches $52,678 7366 batch set-ups
Assembling products $25,122 4,018 assembly hours
The activity rate for the “designing products” activity cost pool is:
Answer:
61.38
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Question 2 point
Sasha Company allocates the estimated $187,100 of its accounting department costs to its production and sales departments since the
accounting department supports the other two departments particularly with regard to payroll and accounts payable functions. The costs will be
allocated based on the number of employees using the direct method. Information regarding costs and employees follows:
Department Employees
Accounting 4
Production 25
, Sales 15
How much of the accounting department costs will be allocated to the production?
Answer:
116,937.5
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Question 3 point
Medusa Company allocates costs from the payroll department (S1) and the maintenance department (S2) to the molding (P1), finishing (P2), and
packaging (P3) departments. Payroll department costs are allocated based on the number of employees in the department and maintenance
department costs are allocated based on the number of square feet which the production department occupies within the factory. Information
about the departments is presented below:
Number of Number of Square
Department Costs Employees Feet Occupied
Payroll (S1) $130,000 2 2,000
Maintenance (S2) $220,000 8 64,000
Molding (P1) 64 100,000
Finishing (P2) 45 60,000
Packaging (P3) 19 40,000
Medusa uses the direct method to allocate costs. Round all answers to the nearest dollar.
What amount of the payroll department costs will be allocated to the molding department?
Answer:
65,000
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Question 4 point