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3. DS Company has identified the following cost pools and activity rates
Activity Cost Pool Activity Rate
Supporting direct labor $4 per direct labor hour
Machine processing $3 per machine hour
Machine setups $30 per setup
Production orders $11 per order
Shipments $98 per shipment
Product sustaining $750 per product

Activity data have been supplied for the following products:
Total Expected Activity
D130 S150
Direct labor hours 2,500 300
Machine hours 4,300 250
Machine Setups 7 2
Production orders 3 2
Shipments 9 4
Products sustaining 2 1

Determine the total overhead cost that would be assigned to each of the products listed above in the activity based costing system: show computations and details

a. D130
b. S150

4. Statues Inc. has the following sales budget for the second of the current year:
April May June Total
Budgeted sales $250,000 $340,000 $590,000 $1,180,000
From past experience the company has learned that 10% of a monthâ??s sales are collected in the month of sale, another 60% are collected in the month following sale, and the remaining 30% are collected in the second month following sale. Bad debts are negligible and can be ignored. February sales totaled $150,000 and March Sales totaled $220,000.
For each of the following months, calculate the amount of projected cash collections: Show solutions and related details.
A. April
B. May
C. June

5. Valentino Company had the following budgeted sales over the last 4 months of the year:
Sales in Units
October 10,000
November 25,000
December 35,000
January 46,000
The company is now in the process of preparing a production budget for the forth quarter. Past experience has shown that end of the month inventories of finished good must equal 20% of the next month's sales.
The inventory at the end of September is 2,000 units
For each of the following months calculate the number of units that need to be produced: show computations and related details
a. October
b. November
c. December
Please show computations

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Solution Summary

DS Company has identified the following cost pools and activity rates

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DS Company:
a. D130
Activity Base Rate Total OH
Direct labor-hours 2,500 $4 $10,000
Machine hours 4,300 $3 $12,900
Machine setups 7 $30 $210
Production orders 3 $11 $33
Shipments 9 $98 $882
Product sustaining 2 $750 $1500

Total Overhead Cost $25,525

b. ...

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