Appleby Manufacturing uses an activity-based costing system. The company produces Model F and Model G. Information relating to the two products is as follows: ​ ​ Model F Model G Units produced 24,000 30,000 Machine hours 7,500 8,500 Direct labor hours 8,000 12,000 Material handling (number of moves) 4,000 6,000 Setups 5,000 7,000 Purchase orders 30 40 Inspections 10,000 14,000 Product line variations 8 12 ​ The following overhead costs are reported for the following activities of the production process: ​ Material handling $ 40,000 Labor-related overhead 120,000 Setups 60,000 Product design 100,000 Batch inspections 120,000 Central purchasing 70,000 ​ Jones manufacturing has used activity based costing to assign costs to Models F and G as given in the table below: ​ Activity Cost Pool Driver Pool Rate Model F Activity Model F Cost Model G Activity Model G Cost Total Material handling $40,000 10,000 $4 4,000 $16,000 6,000 $24,000 $40,000 Labor related overhead $120,000 20,000 $6 8,000 $48,000 12,000 $72,000 $120,000 Setups $60,000 12,000 $5 5,000 $25,000 7,000 $35,000 $60,000 Product design $100,000 20 $5,000 8 $40,000 12 $60,000 $100,000 Batch inspections $120,000 24,000 $5 10,000 $50,000 14,000 $70,000 $120,000 Central purchasing $70,000 70 $1,000 30 $30,000 40 $40,000 $70,000 total ​ ​ ​ ​ $209,000 ​ $301,000 $510,000 ​ Appleby Manufacturing wants to implement an approximately relevant ABC system by using the two most expensive activities for cost assignment. ​ Under this new approach using the new rates, what are the overhead costs assigned to Model G in this approximately relevant ABC system?

Homogeneous products refer to

In a traditional enterprise, the flow of costs through the system is

Batch-level costs are assigned using

A job-order costing process would be applicable for an airplane manufacturer.

In JIT manufacturing, work cells are created that produce a product from start to finish.

Excellent Corporation is a job-order costing company that uses activity-based costing to apply overhead to jobs. The following overhead activities were budgeted for the year: ​ Activity Cost Driver Amount of driver Setups $ 250,000 Number of setups   5,000 Purchasing  190,000 Number of parts 18,000 Other overhead  270,000 Direct labor hours 88,000 ​ The following information about the jobs was given for June: ​ ​ Job 201 Job 202 Job 203 Job 204 Balance 6/1 $64,500 $40,200 $32,500         0 Direct materials   74,000   37,900   23,000 13,000 Direct labor   77,000   36,500   43,500 22,000 Number of setups        50        10         20     200 Number of parts      200       80       400    500 Direct labor hours   4,000  2,300    5,100 1,500 ​ By June 30, Jobs 202 and 203 were completed and sold. The remaining jobs were still in process. The ending work in process would consist of the costs of _____.

Increases in sales of low contribution margin products decrease the break-even point.

Boysenberry Corp. has two support departments, Personnel (P) and Maintenance (M), and two producing departments, Blending (B) and Finishing (F). Estimated direct costs and percentages of services used by these departments are as follows:   ​ Used by Department Support Dept. P M B F P – 10% 60% 30% M 10% – 40% 50% Direct costs $9,000 $13,500 $40,000 $35,000 Required: ​ a. Prepare a schedule allocating the support department costs to the producing departments using the direct allocation method. b. Prepare a schedule allocating the support department costs to the producing departments using the sequential allocation method.

Colorado Corporation has the following sales forecast for the next quarter: ​ July, 4,000 units; August, 4,800 units; September, 5,600 units ​ Sales totaled 3,200 units in June. The June ending finished goods inventory was 800 units. End-of-month finished goods inventory levels are planned to be equal to 30 percent of the next month’s planned sales. Records showed that each unit is budgeted at 2 pounds of materials costing $3 per pound. Direct labor was budgeted at .5 direct labor hours per unit at a wage of $20 per hour. Budgeted variable overhead is $1.50 per direct labor hour. Fixed overhead is budgeted at $250,000 for the year, and 50,000 units are expected to be produced. ​ After preparing a finished goods inventory budget for August, what is the total ending inventory cost?