Cost Pools and Cost Drivers Based on a Recent Study

question 13

Essay

Cost Pools and Cost Drivers Based on a recent study of its manufacturing operations Johnston Manufacturing Corporation has identified six resource consumption cost drivers. These cost drivers and their budgeted activity levels for the coming year are: The firm has budgeted the following costs for the year: With the exception of the factory space cost pool, which uses machine-hours as the activity consumption cost driver, other cost pools have identical resource and activity consumption cost drivers.
Required:
1. Identify the most appropriate activity cost pool for each of the cost items and cost driver for each activity cost pool you identified.
2. Johnston has received a request to quote the price for 4,000 units of a new product. The production will require 100 engineering-hours and 4,250 machine-hours. What is the manufacturing overhead per unit the firm should use in determining the price?

Learn about the flow of information through a neuron.

Comprehend the methodologies used in studying nervous system function.

Understand the implications of neuron damage and neurological disorders.

Learn about the principles of neuron communication and neuron network.

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Definitions:

Transaction Costs

Expenses incurred when buying or selling securities, including broker's fees, commissions, and taxes, which can affect the overall profitability of an investment.

Stock Split

A corporate action in which a company divides its existing shares into multiple shares to boost the liquidity of the shares, though the market capitalization remains the same.

Pre-split Price

The pre-split price is the value of a stock before it undergoes a split, affecting the total number of shares in circulation but not the company's market capitalization.

Post-split Price

Post-split price is the share price of a stock after the company has completed a stock split, adjusting the price proportionately to the split ratio.