1.What is the total budgeted indirect cost at theElmorestore in January2018?What is the total budgeted cost of each activity at theElmorestore for January2018?What is the budgeted indirect cost of each product category for January2018?2.Which product category has the largest fraction of total budgeted indirect costs?3.Given your answer in requirement 2, what advantage doesMaclin's Cornergain by using an activity-based approach to budgeting over, say, allocating indirect costs to products based on cost of goods sold? The Elmore store of Maclin's Corner, a chain of small neighborhood convenience stores, is preparing its activity-based budget for January 2018. Maclin's Corner has three product categories: soft drinks (35% of cost of goods sold [COGS]), fresh produce(25% of COGS), and packaged food (40% of COGS). The following table shows the four activities that consume indirect resources at the Elmore store, the cost drivers and their rates, and the cost-driver amount budgeted to be consumed by each activity inJanuary 2018.E (Click the icon to view the activity and cost-driver information.)Read the requirementsRequirement 1. What is the total budgeted indirect cost at the Elmore store in January 2018? What is the total budgeted cost of each activity at the Elmore store for January 2018? What is the budgeted indirect cost of each product category for January 2018?Complete the following table to determine the total budgeted indirect cost, total budgeted cost of each activity, and budgeted indirect cost of each product category for January 2018. (Round the percentages to the nearest hundredth percent, X XX%.)SoftFreshPackagedDrinksSnacksFoodTotalData TableOrderingDeliveryJanuary 2018January 2018 BudgetedShelf-stockingBudgetedAmount of Cost Driver UsedCustomer supportCost-DriverSoftFreshPackagedTotal costsActivityCost DriverSnacksRateDrinksFoodPercentage of total indirect costs%%%OrderingNumber of purchase orders$86142914DeliveryNumber of deliveries85106820Shelf-stockingHours of stocking time24.001917898Customer support Number of items sold0.174,10034,10011,000PrintDone

"As per bartleby guidelines we will solve the first three question for you. If you want any specific…

1. What is the total budgeted indirect cost at the Elmore store in January 2018? What is the total budgeted cost of each activity at the Elmore store for January 2018? What is the budgeted indirect cost of each product category for January 2018?

1. What is the total budgeted indirect cost at the Elmore store in January 2018? What is the total budgeted cost of each activity at the Elmore store for January 2018? What is the budgeted indirect cost of each product category for January 2018?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter3: Cost Behavior

Section: Chapter Questions

Problem 38P: Friendly Bank is attempting to determine the cost behavior of its small business lending operations....

See similar textbooks

Similar questions

The Ferico store is a neighborhood convenience store. The accountant is preparing its activity-based budget for January 2023. The Ferico has three product categories: child clothes (35% of cost of goods sold) women's clothes (25% of cost of goods sold) and men's clothes (40% of cost of goods sold). The following table shows the four activities that consume indirect resources at the Ferico store, the cost drivers and their rates, and the cost-driver amount budgeted to be consumed by each activity in January 2025. Activity Ordering Delivery Shelf stocking Customer support Average contribution margin Cost driver Number of purchase orders Number of deliveries Hours of stocking time Number of items sold Budgeted cost driver rate $50 $40 $12 $1 Children clothes 15 10 20 5000 $30 Women's clothes 180 35,000 $50 Men's clothes 15 20 100 Required: a. Calculate the total budgeted indirect cost at the Ferico store in January 2023 b. Calculate the budgeted operating income of the company based on…
Analyze Adventure Park’s Staffing Budget Describe and illustrate the use of staffing budgets for nonmanufacturing businesses. Adventure Park is a large theme park. Staffing for the theme park involves many different labor classifications, one of which is the parking lot staff. The parking lot staff collects parking fees, provides directions, and operates trams. The staff size is a function of the number of daily vehicles. Adventure Park has determined from historical experience that a staff member is needed for every 200 vehicles. Adventure Park estimates staff for both school days and non school days. Non school days are higher attendance days than school days. The number of expected vehicles for each day is as follows: School Days Nonschool Days Number of vehicles per day 3,000 8,000 Number of days per year 165 200 Parking fees are $10 per vehicle. Each parking lot employee is paid $110 per day. Determine the annual parking lot staff budget for school…
Nozama.com Inc. sells consumer electronics over the Internet. For the next period, the budgeted cost of the sales order processing activity is $179,400, and 13,800 orders are estimated to be processed. a. Determine the activity rate of the sales order processing activity. per sales order b. Determine the amount of sales order processing cost that Nozama.com would receive if it had 7,900 sales orders.
The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified two cost drivers it uses in its budgeting and performance reports-the number of courses and the total number of students. For example, the school might run two courses in a month and have a total of 63 students enrolled in those two courses. Data concerning the company's cost formulas appear below. Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Revenue Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Courses Students Revenue Expenses: Fixed Cost per Cost per Month $ 46 For example, administrative expenses should be $3.700 per month plus $46 per course plus $3 per student. The company's sales should average $900 per student. Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Total expense Net operating income $ 1,238 $ 5,000 $ 2,200 $ 3,700 The company planned…
The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified two cost drivers it uses in its budgeting and performance reports-the number of courses and the total number of students. For example, the school might run two courses in a month and have a total of 62 students enrolled in those two courses. Data concerning the company's cost formulas appear below: Instructor wages classroom supplies Utilities Campus rent Insurance. Administrative expenses Revenue Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Fixed Cost per Month $ 1,240 $5,000 $ 2,200 $4,000 Required 1 Required 2 Cost per Course $ 2,940 $75 For example, administrative expenses should be $4,000 per month plus $45 per course plus $4 per student. The company's sales should average $880 per student. Actual $ 51,660 $ 11,040 $ 18,450 $1,950 $5,000 $ 2,340 $ 3,854 $45 The company planned to run four courses with a total of 62 students; however,…
The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified two cost drivers it uses in its budgeting and performance reports-the number of courses and the total number of students. For example, the school might run two courses in a month and have a total of 64 students enrolled in those two courses. Data concerning the company's cost formulas appear below: Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Revenue Instructor wages. Classroom supplies Utilities Campus rent Insurance Administrative expenses For example, administrative expenses should be $4,000 per month plus $45 per course plus $7 per student. The company's sales should average $860 per student. The company planned to run four courses with a total of 64 students; however, it actually ran four courses with a total of only 60 students. The actual operating results for September appear below: Courses Students Revenue Expenses: Instructor…
The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified two cost drivers it uses in its budgeting and performance reports-the number of courses and the total number of students. For example, the school might run two courses in a month and have a total of 62 students enrolled in those two courses. Data concerning the company's cost formulas appear below: Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Revenue Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Courses Students Revenue Expenses: For example, administrative expenses should be $4,000 per month plus $43 per course plus $6 per student. The company's sales should average $880 per student. Instructor wages Classroom supplies Utilities Campus rent Insurance Fixed Cost per Cost per Cost per Month Student Course $ 2,940 $65 The company planned to run four courses with a total of 62 students; however,…
The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified two cost drivers that it uses in its budgeting and performance reports-the number of courses and the total number of students. For example, the school might run two courses in a month and have a total of 63 students enrolled in those two courses, Data concerning the company's cost formulas appear below Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Revenue Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Fixed Cost per Month For example, administrative expenses should be $3,600 per month plus $41 per course plus 54 per student. The company's sales should average $890 per student. The actual operating results for September appear below: Cost per Cost per Course Student $2.930 $290 $1,200 $4,600 $2,000 $3,800 $ 41 $ 4 Revenue Expenses $ 90 Actual $53.170 $ 11,000 $18,120 $ 1.970 $ 4,600 Required: 1.…
Nozama.com Inc. sells consumer electronics over the Internet. For the next period, the budgeted cost of the sales order processing activity is $250,000 and 50,000 sales orders are estimated to be processed. a. Determine the activity rate of the sales order processing activity. b. Determine the amount of sales order processing cost associated with 30,000 sales orders.
The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified two cost drivers it uses in its budgeting and performance reports-the number of courses and the total number of students. For example, the school might run two courses in a month and have a total of 63 students enrolled in those two courses. Data concerning the company's cost formulas appear below: Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Fixed Cost per Month Revenue Instructor wages Classroom supplies Utilities $ 1,210 $ 4,800 $ 2,400 $ 3,500 Campus rent Insurance Administrative expenses Cost per Course $ 2,930 $75 $ 45 For example, administrative expenses should be $3,500 per month plus $45 per course plus $6 per student. The company's sales should average $860 per student. Cost per Student $300 The company planned to run four courses with a total of 63 students; however, it actually ran four courses with a total of only 59 students.…
Walmart Retail Company has three Departments: Clothing, Household Appliances and Food Store. It has advertising budget of $150,000 that promotes the Company’s businesses. Walmart allocates advertising costs based on the each departmental Sales figures at the end of the year. The annual sales figures for the departments are as follows: Clothing $200,000; Household Appliances $600,000; and Food Stores $400,000. How much advertising budget is allocated to Household Appliances based on its sales figure? $37,500 b. $75,000 c. $45,000 d. $150,000 e. None of the above. 2. Refer to Question 1 above, the allocation for advertising for Food Store Department should be: a. $50,000 b. $37,500 c. $25,000 d. $427,000 e. None of the above
Walmart Retail Company has three Departments: Clothing, Household Appliances and Food Store. It has advertising budget of $150,000 that promotes the Company’s businesses. Walmart allocates advertising costs based on the each departmental Sales figures at the end of the year. The annual sales figures for the departments are as follows:Clothing $200,000; Household Appliances $600,000; and Food Stores $400,000.How much advertising budget is allocated to Household Appliances based on its sales figure?a$37,500 b. $75,000 c. $45,000 d. $150,000 e. None of the above.

SEE MORE QUESTIONS

Recommended textbooks for you

Cornerstones of Cost Management (Cornerstones Ser…

Accounting

ISBN:

9781305970663

Author:

Don R. Hansen, Maryanne M. Mowen

Publisher:

Cengage Learning

Cornerstones of Cost Management (Cornerstones Ser…

Accounting

ISBN:

9781305970663

Author:

Don R. Hansen, Maryanne M. Mowen

Publisher:

Cengage Learning

SEE MORE TEXTBOOKS

GET THE APP

About FAQ Academic Integrity Sitemap Document Sitemap

Contact Bartleby Contact Research (Essays)High School Textbooks Literature Guides Concept Explainers by Subject Essay Help Mobile App

GET THE APP

Privacy

Your CA Privacy Rights

Your NV Privacy Rights

About Ads

Manage My Data

bartleby, a Learneo, Inc. business

1.	What is the total budgeted indirect cost at the Elmore store in January 2018? What is the total budgeted cost of each activity at the Elmore store for January 2018? What is the budgeted indirect cost of each product category for January 2018?
2.	Which product category has the largest fraction of total budgeted indirect costs?
3.	Given your answer in requirement 2, what advantage does Maclin's Corner gain by using an activity-based approach to budgeting over, say, allocating indirect costs to products based on cost of goods sold?

1. What is the total budgeted indirect cost at the Elmore store in January 2018​? What is the total budgeted cost of each activity at the Elmore store for January 2018​? What is the budgeted indirect cost of each product category for January 2018​?

1. What is the total budgeted indirect cost at the Elmore store in January 2018? What is the total budgeted cost of each activity at the Elmore store for January 2018? What is the budgeted indirect cost of each product category for January 2018?