Acct 361 Assignment Solution

In: Business and Management

Submitted By marija333
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Exercise 39, Page 186 of textbook Cost Category | Cost Hierarchy | Direct Materials – Purses | Output Unit-Level Costs | Direct Materials – Backpacks | Output Unit-Level Costs | Direct Labour – Purses | Output Unit-Level Costs | Direct Labour – Backpacks | Output Unit-Level Costs | Setup | Batch-Level Costs | Shipping | Batch-Level Costs | Design | Product-Sustaining Costs | Plant Utilities And Administration | Facility-Sustaining Costs |
2.
Cost Category | Cost Driver | Direct Materials – Purses | Number Of Bags
(Direct Materials can easily be traced to output, which is number of bags produced) | Direct Materials – Backpacks | Number Of Bags
(Direct Materials can easily be traced to output, which is number of bags produced) | Direct Labour – Purses | Number Of Bags
(Direct Labour can easily be traced to output, which is number of bags produced) | Direct Labour – Backpacks | Number Of Bags
(Direct Labour can easily be traced to output, which is number of bags produced) | Setup | Number Of Batches
(Setup is a function of the number of batches produced) | Shipping | Number Of Batches (Shipping is a function of the number of batches produced) | Design | Number Of Designs (Design is related to the number of designs for each product) | Plant Utilities And Administration | Hours Of Production (Seeing as both plant utilities and administration are the product of general activity in the plant, production hours are a good cost driver) |
3.
Cost Category | Cost Per Unit Of Cost Driver | Direct Materials – Purses | $362,000 = $114.92 per purse 3,150 purses | Direct Materials – Backpacks | $427,0006,000 backpacks
= $71.17 per backpack | Direct Labour – Purses | $98,000 = $31.11 per purse 3,150 purses | Direct Labour – Backpacks | $115,5976,000 backpacks
= $19.27 per backpack | Setup | $64,960 = $320 per batch…...

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