Goertz Corporation has an activity-based costing system with three activity cost pools-Machining, Order Filling, and Other. In the first stage allocations, costs in the two overhead accounts, equipment depreciation and supervisory expense, are allocated to the three activity cost pools based on resource consumption. Data used in the first stage allocations follow:Overhead costs: Equipment depreciation$51,000Supervisory expense$3,000??Distribution of Resource Consumption Across Activity Cost Pools: Activity Cost Pools MachiningOrder FillingOtherEquipment depreciation0.400.100.50Supervisory expense0.200.300.50Machining costs are assigned to products using machine-hours (MHs) and Order Filling costs are assigned to products using the number of orders. The costs in the Other activity
cost pool are not assigned to products. Activity data for the company's two products follow:Activity: MHs (Machining)Orders (Order Filling)Product J39,100100Product F7900900Total10,0001,000Finally, the costs of Machining and Order Filling are combined with the following sales and direct cost data to determine product margins.Sales and Direct Cost Data: Product J3Product F7Sales (total)$145,200$90,700Direct materials (total)$81,400$38,600Direct labor (total)$37,700$42,400What is the product margin for Product F7 under activity-based costing?
A. $2,710
B. $2,410
C. $9,700
D. $10,600
Answer: B
You might also like to view...
Marketing plans are becoming more production oriented because of the high costs of doing business in today's economy
Indicate whether the statement is true or false
Answer the following statements true (T) or false (F)
1) A business maintains a separate Accounts Receivable account for each customer in order to account for payments received from the customer and amounts still owed by the customer. 2) Because customers make payments on account throughout the period, the sum of all balances in subsidiary accounts receivable will not equal the control account balance. 3) By accepting credit and debit cards, companies are able to attract more customers. 4) When businesses accept payment by credit and debit cards, there is almost always a fee to the purchaser to cover the processing costs charged by the card issuer. 5) Sales through credit or debit cards transfer the risk of collection of receivables from the seller to the card issuer.
One major challenge for managing your negotiating team is implementing discipline among team members to follow the strategy once the negotiation begins. What are the three suggestions from the text on how to manage the challenge of implementing team discipline?
What will be an ideal response?
When managers motivate employees with compensation and job opportunity, they are utilizing which of the following managerial functions?
A. Synergizing B. Controlling C. Leading D. Planning E. Organizing