An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded.
a.
Indirect Labor / Plantwide Allocation Base = Single Plantwide Rate
dlh per dlh
Direct Indirect Indirect
Labor Plantwide Labor Labor Cost
b.
Activity-based rates: Production
Setup Support
Budgeted activity cost
Activity base setups dlh
Activity rate /setup /dlh
c.
Activity-Base
Activity Activity Activity-Base Activity Activity
Activity Usage Rate Cost Usage Rate Cost
Setup setups /setup setups /setup
Prod. support dlh /dlh dlh /dlh
Total
Units
Activity cost per unit
d.
Exercise 18(4)-13
Name:
Section:
Cell Phones
[Key essay answer here]
Tablets
Cells with non-gray backgrounds are protected and cannot be edited.
0%
[Key code here]
Answers are entered in the cells with gray backgrounds.
Score:
Key Code:
Instructions
An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded.
a.
Direct Indirect Indirect
Labor Plantwide Labor Labor Cost
b.
Activity-based rates: Production
Setup Support
Budgeted activity cost 60,000$ 140,000$
c.
Activity-Base
Activity Activity Activity-Base Activity Activity
Activity Usage Rate Cost Usage Rate Cost
d.
The per-unit indirect labor costs in (a) are distorted because setup activity is consumed by the products in a different ratio from
the direct labor. Cell phones required 1,200 setups over a volume of 80,000 units (or 67 units per production run), while tablets
Cell Phones
Tablets
Exercise 18(4)-13
Name:
Solution
Section:
ON
Score:
Instructions
Answers are entered in the cells with gray backgrounds.
Cells with non-gray backgrounds are protected and cannot be edited.