Accounting Question 1

1. Company XYZ has two fixed price contracts for two different clients. The company has enough capacity for both contracts but is uncertain whether they will be profitable.
   
   Data as follows:
   
   
   
   Annual Budgeted overheads as follows:
   
   
   
   
   Required:
   
   1. Calculate the activity-based costs and profits for each contract.
   2.  There is not a word length requirement for this question; however, you must show your work

Accounting Question 2

1. Davis-Bell Corporation has an activity-based costing system with three activity cost pools – Machining, Setting Up, and Other. The company’s overhead costs have already been allocated to the cost pools and total $5,800 for the Machining cost pool, $4,700 for the Setting Up cost pool, and $7,500 for the Other cost pool. Costs in the machining cost pool are assigned to products based on machine-hours (MHs) and costs in the Setting Up cost pool are assigned to products based on the number of batches. Costs in the Other cost pool are not assigned to products. Data concerning the two products are below: Accounting Question Assignment Help
   
   MHs Batches Product Z73,800700Product K96,200300Total10,0001,000
   
   1. Calculate activity rates for each activity cost pool using activity-based costing.
   2. Determine the amount of overhead cost that would be assigned to each product using activity-based costing.

Bell Products Corporation manufactures after-market clutch plates for motorcycles, automobiles, racing applications, and heavy industry vehicles. One of the first stages of clutch plate production is to stamp the raw plates out of rolls of metal. The process requires the use of 100 ton presses that stamp out hundreds of plates per minute. Accounting Question Assignment Help

A chemical is used to keep the presses from overheating and is automatically sprayed in fractions of seconds to keep the press operating smoothly to lubricate and prepare the metal. The chemical also keeps the press from sparking during the punching process. A small spark could cause a fire and safety hazard. Therefore, the chemical is crucial to the operation of the stamping process.

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