Posted: May 3rd, 2016
DS Company has identified the following cost pools and activity rates:
Activity Cost Pool Activity Rate Supporting direct labor $4 per direct labor hour Machine processing $3 per machine hour Machine setups $30 per setup Production orders per order Shipments $98 per shipment Product sustaining 0 per product Activity data have been supplied for the following products: Total Expected Activity D130 S150 Direct labor hours 2,500 300 Machine hours 4,300 250 Machine Setups 7 2 Production orders 3 2 Shipments 9 4 Products sustaining 2
1 Determine the total overhead cost that would be assigned to each of the products listed above in the activity based costing system: show computations and details
a. D130
b. S150
Statues Inc. has the following sales budget for the second of the current year:
April May June Total Budgeted sales $250,000 $340,000 $590,000 $1,180,000 From past experience the company has learned that 10% of a month’s sales are collected in the month of sale, another 60% are collected in the month following sale, and the remaining 30% are collected in the second month following sale. Bad debts are negligible and can be ignored. February sales totaled $150,000 and March Sales totaled $220,000.
For each of the following months, calculate the amount of projected cash collections: Show solutions and related details.
A. April
B. May
C. June
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