Silven Company has identified the following overhead activities, costs, and activity drivers for the coming year: Activity Expected Cost Setting up equipment $138,000 Ordering materials 21,600 Machining 107,100 Receiving 16,740 Silven produces two models of cell phones with the following expected activity demands: Model X 4,600 80 400 6,800 310 Units completed Number of setups Number of orders Machine hours Receiving hours Required: Model Y Activity Driver Activity Capacity Number of setups 120 Number of orders 1,200 Machine hours 11,900 Receiving hours 930 9,200 40 800 5,100 620 1. Determine the total overhead assigned to each product using the four activity drivers.

Silven Company has identified the following overhead activities, costs, and activity drivers for the coming year: Activity Expected Cost Setting up equipment $138,000 Ordering materials 21,600 Machining 107,100 Receiving 16,740 Silven produces two models of cell phones with the following expected activity demands: Model X 4,600 80 400 6,800 310 Units completed Number of setups Number of orders Machine hours Receiving hours Required: Model Y Activity Driver Activity Capacity Number of setups 120 Number of orders 1,200 Machine hours 11,900 Receiving hours 930 9,200 40 800 5,100 620 1. Determine the total overhead assigned to each product using the four activity drivers.

Name: Silven Company has identified the following overhead activities, cost
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Description: Silven Company has identified the following overhead activities, costs, and activity drivers for the coming year:ActivityExpected CostActivity Driver Activity CapacitySetting up equipment$138,000Number of setups120Ordering materials21,600Number of o

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter4: Activity-based Costing

Section: Chapter Questions

Problem 27E: Plata Company has identified the following overhead activities, costs, and activity drivers for the...

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Silven Company has identified the following overhead activities, costs, and activity drivers for the coming year: Silven produces two models of cell phones with the following expected activity demands: Required: 1. Calculate the global consumption ratios for the two products. 2. Using the activity consumption ratios for number of orders and number of setups, show that the same cost assignment can be achieved using these two drivers as that of the complete, four-driver ABC system.
Bumblebee Mobiles manufactures a line of cell phones. The management has identified the following overhead costs and related cost drivers for the coming year. The following were incurred in manufacturing two of their cell phones, Bubble and Burst, during the first quarter. REQUIREMENT Review the worksheet called ABC that follows these requirements. You have been asked to determine the cost of each product using an activity-based cost system. Note that the problem information is already entered into the Data Section of the ABC worksheet.
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