Garden Variety is an organization that manufactures lawn gnomes and other decorative yard items. David, the senior accountant, is creating a budget for the New Year while simultaneously implementing a transition into Activity-Based Costing (ABC). The lawn gnomes had Direct Labor (DL) costs of $147,890.00 and Direct Materials (DM) costs of $90,707.00. David has gathered the following budgeted Manufacturing Overhead (MOH) costs information and divided it into four key activities:
During the current year, Garden Variety produced 19,480 lawn gnomes and used 6,230 setups, 3,440 inspections, 4,160 supervisor hours, and 1,880 cleaning/maintenance hours.
a. What are the activity rates of each of the four key activities? (If required, round calculations to two decimal places.)
b. What is the total amount of MOH allocated to the lawn gnomes?
c. What is the total cost per lawn gnome?

Question

Garden Variety is an organization that manufactures lawn gnomes and other decorative yard items. David, the senior accountant, is creating a budget for the New Year while simultaneously implementing a transition into Activity-Based Costing (ABC). The lawn gnomes had Direct Labor (DL) costs of $147,890.00 and Direct Materials (DM) costs of $90,707.00. David has gathered the following budgeted Manufacturing Overhead (MOH) costs information and divided it into four key activities:
  During the current year, Garden Variety produced 19,480 lawn gnomes and used 6,230 setups, 3,440 inspections, 4,160 supervisor hours, and 1,880 cleaning/maintenance hours.
a. What are the activity rates of each of the four key activities? (If required, round calculations to two decimal places.)
b. What is the total amount of MOH allocated to the lawn gnomes?
c. What is the total cost per lawn gnome?

Quizplus · Accepted Answer

The Answer of Garden Variety is an organization that manufactures lawn gnomes and other decorative yard items. David, the senior accountant, is creating a budget for the New Year while simultaneously implementing a transition into Activity-Based Costing (ABC). The lawn gnomes had Direct Labor (DL) costs of $147,890.00 and Direct Materials (DM) costs of $90,707.00. David has gathered the following budgeted Manufacturing Overhead (MOH) costs information and divided it into four key activities:
  During the current year, Garden Variety produced 19,480 lawn gnomes and used 6,230 setups, 3,440 inspections, 4,160 supervisor hours, and 1,880 cleaning/maintenance hours.
a. What are the activity rates of each of the four key activities? (If required, round calculations to two decimal places.)
b. What is the total amount of MOH allocated to the lawn gnomes?
c. What is the total cost per lawn gnome?

Garden Variety Is an Organization That Manufactures Lawn Gnomes and Other