Managerial Accounting Homework.

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Ch22 P3 (3)

Chapter 22, P 3. (Continued)
2 and 3. Bill of activities prepared and activity-based costing applied to Job 142.
Noir Company
Bill of Activities
Job 142
Activity
Activity Activity Cost Rate Cost Driver Level Cost
Unit level
Materials per dollar of materials $ — 0
handling materials
Assembly per direct labor direct labor — 0
hour hours
Batch level
None
Product level
Engineering per unit units — 0
design
Facility level
Overhead per machine hour machine hours — 0
(3 MH × 520 units)
Total activity costs assigned to job $ — 0
Total units of job — 0
Activity costs per unit (total activity costs ¸ total units) $ — 0
Cost summary
Direct materials $ — 0
Activity costs — 0
Total cost of order $ — 0
Product unit cost (total cost of order ¸ 520 units) $ — 0
* Rounded
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Ch22 P3

Chapter 22, P 3.
1. Activity cost rates computed.
a. Materials handling cost rate
Direct materials:
Leather
Metal frame
Bolts
Total direct materials cost $ — 0
Materials handling:
Labor
Equipment depreciation
Electrical power
Maintenance
Total materials handling cost $ — 0
Materials handling cost rate
$ — 0 ¸ $ — 0 = 0% per dollar of direct materials
b. Assembly cost rate computed
Assembly:
Direct labor
Assembly cost rate
$13,230 ¸ 882 direct labor hours = $15 per direct labor hour
c. Engineering design cost rate computed
Engineering design:
Labor
Electrical power
Engineering overhead
Total engineering design cost $ — 0
Engineering design cost rate
$ — 0 ¸ 29,400 units = $ — 0 per unit
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Ch22 P3 (2)

Chapter 22, P 3. (Continued)
d. Overhead rate computed
Overhead:
Equipment depreciation
Indirect labor
Supervision
Operating supplies
Electrical power
Repairs and maintenance
Building occupancy overhead
Total overhead cost $ — 0
Machine hours
× hours per unit = — 0 machine hours
Overhead rate
$ — 0 ¸ — 0 machine hours = $ — 0 per machine hour
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Ch23 E8

Chapter 23, E 8.
1. Breakeven units computed.
BE Units = FC
CM per Unit
= +
– ( + )
= $ — 0
$ — 0
= — 0 Sets
2. Breakeven dollars computed.
BE Dollars = BE Units × Selling Price per Set
= — 0 × $ — 0
= $ — 0
3. New breakeven units computed.
BE Units = FC
CM per Unit
= $ — 0 +
– ( $ — 0 + $ — 0 )
= $ — 0
$ — 0
= — 0 Sets
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