Flanigan Manufacturing uses an activity-based cost system. The company produces Product R and Product X. Information concerning the two products is as follows:
The following costs are reported:
Required:

a.
Classify the overhead activities as:
•
Unit-level activities
•
Batch-level activities
•
Product-sustaining activities
b.
Calculate the following:
•
The pool rate for power
•
The pool rate for setups
•
The pool rate for engineering
c.
Calculate the following:
•
Power costs assigned to Product X
•
Setup costs assigned to Product R
•
Engineering costs assigned to Product R

Question

Flanigan Manufacturing uses an activity-based cost system. The company produces Product R and Product X. Information concerning the two products is as follows:
The following costs are reported:
  Required:
  
a.
Classify the overhead activities as:
•
Unit-level activities
•
Batch-level activities
•
Product-sustaining activities
b.
Calculate the following:
•
The pool rate for power
•
The pool rate for setups
•
The pool rate for engineering
c.
Calculate the following:
•
Power costs assigned to Product X
•
Setup costs assigned to Product R
•
Engineering costs assigned to Product R

Quizplus · Accepted Answer

The Answer of Flanigan Manufacturing uses an activity-based cost system. The company produces Product R and Product X. Information concerning the two products is as follows:
The following costs are reported:
  Required:
  
a.
Classify the overhead activities as:
•
Unit-level activities
•
Batch-level activities
•
Product-sustaining activities
b.
Calculate the following:
•
The pool rate for power
•
The pool rate for setups
•
The pool rate for engineering
c.
Calculate the following:
•
Power costs assigned to Product X
•
Setup costs assigned to Product R
•
Engineering costs assigned to Product R

Flanigan Manufacturing Uses an Activity-Based Cost System