Question 1: 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 $11 per order
Shipments $98 per shipment
Product sustaining $750 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
Question 2: 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
Question 3: Valentino Company had the following budgeted sales over the last 4 months of the year:
Sales in Units
October 10,000
November 25,000
December 35,000
January 46,000
The company is now in the process of preparing a production budget for the forth quarter. Past experience has shown that end of the month inventories of finished good must equal 20% of the next month's sales.
The inventory at the end of September is 2,000 units
For each of the following months calculate the number of units that need to be produced: show computations and related details
a. October
b. November
c. December
Please show computations