Phoenix Company Makes Custom Covers for Air Conditioning Units for Homes

question 4

Essay

Phoenix Company makes custom covers for air conditioning units for homes and businesses.The company uses an activity-based costing system for its overhead costs.The company has provided the following data concerning its annual overhead costs and its activity cost pools:
The "Other" activity cost pool consists of the costs of idle capacity and organization-sustaining costs.
The amount of activity for the year is as follows:
Required:
a.Prepare the first-stage allocation of overhead costs to the activity cost pools by filling in the table below:
b.Compute the activity rates (i.e. ,cost per unit of activity)for the Making Awnings and Job Support activity cost pools by filling in the table below:
c.Prepare an action analysis report in good form of a job that involves making 50 yards of covers and has direct materials and direct labor cost of $1,500.The sales revenue from this job is $2,500.
For purposes of this action analysis report,direct materials and direct labor should be classified as a Green cost;production overhead as a Red cost;and office expense as a Yellow cost.
$\begin{array}{llcc} \text { Overhead costs:} &\\ \text { Production overhead.... } &\$100.000\\ \text { Office expense...............} &\underline{50,000}\\ \text {Total............................. } &\underline{\$150,000}\\\end{array}$
$\text { Distribution of resource consumption: }$

$\begin{array}{ccccc}&\text { Making}& \text { Job }\\ \text { Activity Cost Pools } & \text { Covers } & \text { Support } & \text { Other } & \text { Total } \\\text { Production overhead .......... } & 40 \% & 42 \% & 18 \% & 100 \% \\\text { Office expense..................... } & 12 \% & 60 \% & 28 \% & 100 \%\end{array}$ $$\begin{array} { l r } \text { Activity Cost Pool } & \text { Annual Activity } \\\text { Making covers } & 2,500 \text { yards } \\\text { Job support } &200 \text { jobs } \\\text { Other }&\text { Not applicable }\end{array}$$ $$\begin{array} { | l | l | l | l | l | } \hline & \begin{array} { c } \text { Making } \\\text { Covers }\end{array} & \begin{array} { c } \text { Job } \\\text { Support }\end{array} & \text { Other } & \text { Total } \\\hline \text { Production overhead.......... } & & & & \\\hline \text { Office expense ................. } & & & & \\\hline \text { Total ....................... } & & & & \\\hline\end{array}$$ $\begin{array}{|l|r|r|}\hline & \text { Makinn Covers} & \text { Job Support } \\\hline \text { Activity ........................ } & & \\\hline \text { Production overhead........ } & & \\\hline \text { Office expense ................. } & & \\\hline \text { Total ..................... } & & \\\hline \end{array}$

Assess the impact of Prohibition and its eventual failure on American society.

Recognize the influence of immigration policies and attitudes towards immigrants in the 1920s.

Understand the dynamics of racial relations and the KKK’s resurgence during this period.

Understand the sequence and relationship between invention, innovation, and diffusion within the technological advancement process.

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Definitions:

England

A country that is part of the United Kingdom, known for its rich history, cultural heritage, and as the birthplace of the English language.

United States

A country in North America comprising 50 states, a federal district, five major self-governing territories, and various possessions.

Canada

A country in North America known for its vast landscapes, multicultural communities, and as the second-largest country by total area.

Shift Work

A work schedule involving work hours that occur outside the traditional 9 to 5, often including evenings, nights, and weekends.