There are 6 questions total. Please show work the best you can,


Question Description:

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There are 6 questions total. Please show work the best you can, thank you! 🙂 Acct 2 – Ch. 7 Homework.docx 1. 2. . 3. 4. The operations vice president of Security Home Bank has been interested in investigating the efficiency of the bank’s operations. She has been particularly concerned about the costs of handling routine transactions at the bank and would like to compare these costs at the The Westfield branch If Security Home Bank most efficient operations can be data for bank’s various branches. of the branches with the has submitted the following cost identified, last methods can be studied and then replicated elsewhere. While the bank maintains theiryear: meticulous records of wages and other costs, there has been no attempt thus far to show how Teller 160,000 those costs are$related to the various services provided by the bank. The operations vice wages president has asked your help in conducting an activity-based costing study of bank Assistant operations. In particular, she would like to know the cost of opening an account, the75,000 cost of branch processing deposits and withdrawals, and the cost of processing other customer transactions. manager salary Branch manager 80,000 salary Total $ 315,000 5. This problem contains 4 parts: Advanced Products Corporation has supplied the following data from its activity-based costing system: Overhead Costs Wages and salaries Other overhea d costs Total overhea d costs Activity Cost Pool Supporting direct labor Order processing Customer support Other $ 300,000 100,000 $ 400,000 Activity Measure Number of direct labor-hours Number of customer orders Number of customers This is an organization-sustaining activity Total Activity 20,000 DLHs 400 orders 200 customers Not applicable Wages and salaries Other overhead costs Distribution of Resource Consumption Across Activities Direct Labor Order Customer Support Processing Support Other Total 40% 30% 20% 10% 100% 30% 10% 20% 40% 100% During the year, Advanced Products completed one order for a new customer, Shenzhen Enterprises. This customer did not order any other products during the year. Data concerning that order follow: Data Concerning the Shenzhen Enterprises Order Units ordered 10 units Direct labor-hours 2 DLHs per unit Selling price $300 per unit Direct materials $180 per unit Direct labor $50 per unit 6. This question has 3 parts: Hi-Tek Manufacturing Inc. makes two types of industrial component parts—the B300 and the T500. An absorption costing income statement for the most recent period is shown below: Hi-Tek Manufacturing Inc. Income Statement $ 2,100,000 Sales Cost of goods sold Gross margin Selling and 1,600,000 500,000 550,000 administrativ e expenses Net operating loss $ (50,000) Hi-Tek produced and sold 70,000 units of B300 at a price of $20 per unit and 17,500 units of T500 at a price of $40 per unit. The company’s traditional cost system allocates manufacturing overhead to products using a plantwide overhead rate and direct labor dollars as the allocation base. Additional information relating to the company’s two product lines is shown below: B300 T500 Total Direct 436,300 $ $251,700 $ 688,000 materials 200,000 104,000 Direct labor $ $ 304,000 Manufacturing overhead 608,000 Cost of goods sold $ 1,600,000 The company has created an activity-based costing system to evaluate the profitability of its products. Hi-Tek’s ABC implementation team concluded that $50,000 and $100,000 of the company’s advertising expenses could be directly traced to B300 and T500, respectively. The remainder of the selling and administrative expenses was organization-sustaining in nature. The ABC team also distributed the company’s manufacturing overhead to four activities as shown below: Activity Manufacturing Activity Cost Pool (and Activity Measure) Machining (machinehours) Setups (setup hours) Product-sustaining (number of products) Other (organizationsustaining costs) Total manufacturing B300 Overhead

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