Cricket Company has identified seven activities as part of its manufacturing process and chosen corresponding activity drivers for each activity. The chart below lists the total cost of each activity, the proportion of activity driver used for each of Cricket's two products, and the activity cost assigned to each product. Fill in the blanks below:
Activity
Cost
Activity Driver
Proportion used by
Activity Cost: Prod. 1
Activity Cost: Prod. 2
Prod. 1
Prod. 2
Design
$20,000
Design time
40%
60%
a.
b.
Preparation
$12,000
Labor hours
30%
c.
$3,600
d.
Machining
$45,000
Machine hours
e.
f.
$27,000
g.
Finishing
h.
Batches
40%
i.
$10,000
j.
Inspection
k.
Units
l.
m.
$9,000
$6,000
Packaging
n.
Orders
o.
25%
$13,500
p.
Shipping
$5,000
Packages
70%
q.
r.
$1,500
Correct Answer:
Verified
b. $12,000 = $...
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q105: Amy Andrews is a CPA who works
Q109: Which of the following involves analyzing the
Q110: Carter, Inc. uses a traditional volume-based costing
Q112: Magenta Company has identified seven activities as
Q113: Pecan Inc. produces water valves. Overhead costs
Q114: When target costing is used,the target cost
Q117: External failure costs occur _ a defective
Q118: Sonora,Inc.is launching a new product that it
Q119: Hayden, Inc. produces two different products, Product
Q120: Which type of quality cost would a
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents