Question

4.)
X Company uses an activity-based costing allocation system. On January 1, 2020, its accountant budgeted the following costs and cost drivers for three of the activities that are used in the ABC system:

Activity   Budgeted cost   Cost driver
Assembly   $134,000   92,700 parts
Packaging   $80,400   13,000 finished units
Purchasing   $53,600   4,700 purchase orders

In May of 2020, 563 units of Product C were finished, requiring $10,100 of direct materials, 5,000 direct labor hours, 1,410 parts, and 34 purchase orders.

How much of the three activity costs was allocated to Product C [round overhead rate(s) to two decimal places]?

5.)
X Company's accountant uses account analysis to estimate costs for each month, with direct labor hours as the independent variable. In July, she did the following cost behavior analysis for three specific cost items:
Cost Item   Total Cost   Fixed Cost
Supplies   $345,240   $0
Utilities   354,580   93,460
Rent   384,000   384,000
In July, direct labor hours were 12,000. If direct labor hours in November are expected to be 11,100, what are expected total costs for these three cost items in November?

Answer 1