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andrey2020 [161]
3 years ago
8

Simplifying the ABC System: TDABC Golding Bank provided the following data about its resources and activities for its checking a

ccount process:
Resources Activities Time per Unit Activity Driver
Supervision $60,000 Processing accounts 0.20 hr. No. of accounts
Phone and supplies 76,000 Issuing statements 0.10 hr. No. of statements
Salaries 242,000 Processing transactions 0.05 hr. No. of transactions
Computer 22,000 Answering customer inquiries 0.15 hr. No. of inquiries
Total 400,000
Total check processing hours 20,000
(practical capacity)
Required:
1. Calculate the capacity cost rate for the checking account process. Round your answers to the nearest cent.
$ per hour
2. Calculate the activity rates for the four activities. Round your answers to the nearest cent..
Processing accounts $ per account
Issuing statements $ per statement
Processing transactions $ per transaction
Answering inquiries $ per inquiry
If the total number of statements issued was 20,000, calculate the cost of the issuing statements activity.
Business
1 answer:
IRISSAK [1]3 years ago
7 0

Answer:

1.$20 per hour

2. Processing accounts $4 per account

Issuing statements $2 per statement

Processing transactions $1 per transaction

Answering inquiries $3 per inquiry

$40,000

Explanation:

1. Calculation to determine the capacity cost rate for the checking account process

Using this formula

Capacity cost rate= Total resources / Total checking processing hours

Let plug in the formula

Capacity cost rate= $400,000 / 20,000

Capacity cost rate= $20 per hour

Therefore the capacity cost rate for the checking account process is $20 per hour

2. Calculation to determine the activity rates for the four activities.

Processing accounts= 0.20 × $20

Processing accounts= $4 per account

Issuing statements= 0.10 × $20

Issuing statements= $2 per statement

Processing transactions= 0.05 × $20

Processing transactions= $1 per transaction

Answering inquiries= 0.15 × $20

Answering inquiries= $3 per inquiry

Therefore the activity rates for the four activities are:

Processing accounts $4 per account

Issuing statements $2 per statement

Processing transactions $1 per transaction

Answering inquiries $3 per inquiry

Calculation to determine the cost of the issuing statements activity If the total of issuing statement was 20,000

Using this formula

Cost of the issuing statements activity= Issuing statements*Total of issuing statement

Cost of the issuing statements activity

Let plug in the formula

Cost of the issuing statements activity= 20,000 × $2

Cost of the issuing statements activity= $40,000

Therefore the cost of the issuing statements activity is $40,000

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1 year ago
The following data are given for Harry Company:
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Question

Kindly note that the original question is not complete. The closest question found similar to the original is given below.

The following data are given for Harry Company:

Budgeted production 1,001 units

Actual production 920 units

Materials:

Standard price per ounce $1.904

Standard ounces per completed unit 10

Actual ounces purchased and used in

production 9,476

Actual price paid for materials $19,426

Labor:

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Standard hours allowed per completed unit 4.3

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Actual total labor costs $76,993

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Actual and budgeted fixed overhead $1,155,000

Standard variable overhead rate $27.00 per standard labor hour

Actual variable overhead costs $132,664

Overhead is applied on standard labor hours.

Determine the labour rate variance.

Answer:

Labour rate variance $10,234.58 unfavorable

Explanation:

<em>The labour rate variance is the difference between the standard labour cost allowed for the actual hours worked and the actual labor cost for the same hours                                                                                           </em>

<em>Actual labour hours = 4,738</em>

                                                                                          $

4,738  hours should have cost (4,738 ×  $14.09) =  66,758.42                  

but did cost  (actual cost)                                           <u>76,993.00 </u>

labour rate variance                                                   <u>  10,234.58 unfavorable</u>  

Labour rate variance $10,234.58 unfavorable

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