Yoke Corporation has provided the following data from its activity-based costing accounting system:

Yoke Corporation has provided the following data from its activity-based costing accounting system:

Supervisory wages	$	86,200
Factory Utilities	$	296,000

Distribution of Resource Consumption across Activity Cost Pools:

Activity Cost Pools	Batch set-ups		Unit Processing		Other		Total
Supervisory wages	62	%	37	%	1	%	100	%
Factory Utilities	32	%	64	%	4	%	100	%

The "Other" activity cost pool consists of the costs of idle capacity and organization-sustaining costs that are not assigned to products.

Required:

a.	Determine the total amount of supervisory wages and factory utilities costs that would be allocated to the unit Processing activity cost pool. (Omit the "$" sign in your response.)

Total amount

$

b.	Determine the total amount of supervisory wages and factory utilities costs that would be allocated to the Other cost pool. (Omit the "$" sign in your response.)

Total amount

$

Explanation:

a.

Supervisory wages (37% × $86,200)	$	31,894
Factory utilities (64% × $296,000)		189,440
Total	$	221,334

b.

Supervisory wages (1% × $86,200)	$	862
Factory utilities (4% × $296,000)		11,840
Total	$	12,702

Hugle Corporation's activity-based costing system has three activity cost pools-Machining, Setting Up, and Other. The company's overhead costs have already been allocated to these cost pools as follows:

Hugle Corporation's activity-based costing system has three activity cost pools-Machining, Setting Up, and Other. The company's overhead costs have already been allocated to these cost pools as follows:

Machining	$	72,798
Setting up	$	119,978
Other	$	23,900

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. The following table shows the machine-hours and number of batches associated with each of the company's two products:

	MHs	Batches
Product E8	2,580	1,330
Product V8	8,450	1,180
Total	11,030	2,510

Additional data concerning the company's products appears below:

	Product E8		Product V8
Sales (total)	$	273,000	$	273,000
Direct materials (total)	$	88,300	$	83,500
Direct labor (total)	$	99,400	$	66,300

Required:
a.	Calculate activity rates for each activity cost pool using activity-based costing. (Round your answers to 2 decimal places. Omit the "$" sign in your response.)

	Activity Rate
Machining	$	per MH
Setting up	$	per batch

b.	Determine the amount of overhead cost that would be assigned to each product using activity-based costing. (Omit the "$" sign in your response.)

	Product E8	Product V8
Machining	$	$
Setting up
Total	$	$

c.	Determine the product margins for each product using activity-based costing. (Omit the "$" sign in your response.)

	Product Margin
Product E8	$
Product V8	$

Explanation: a.
Computation of activity rates:

Activity Cost Pools	Total Cost		Total Activity		Activity Rate
Machining	$	72,798	11,030	MHs	$	6.60	per MH
Setting up	$	119,978	2,510	batches	$	47.80	per batch

b.
Assign overhead costs to products:
Overhead cost for Product E8:

	Activity Rate			Activity		ABC Cost
Machining	$	6.60	per MH	2,580	MHs	$	17,028
Setting up	$	47.80	per batch	1,330	batches		63,574
Total						$	80,602

Overhead cost for Product V8:

	Activity Rate			Activity		ABC Cost
Machining	$	6.60	per MH	8,450	MHs	$	55,770
Setting up	$	47.80	per batch	1,180	batches		56,404
Total						$	112,174

c.
Determine product margins:

	Product E8				Product V8
Sales			$	273,000			$	273,000
Direct materials	$	88,300			$	83,500
Direct labor		99,400				66,300
Machining		17,028				55,770
Setting up		63,574		268,302		56,404		261,974
Product margin			$	4,698			$	11,026

Blockmon Hospital bases its budgets on patient-visits. The hospital's static planning budget for November appears below:

Blockmon Hospital bases its budgets on patient-visits. The hospital's static planning budget for November appears below:

Budgeted number of patients-visits		8,300
Budgeted variable costs:
Supplies (@ $8.39 per patient-visit)	$	69,637
Laundry (@ $7.89 per patient-visit)		65,487
Budgeted fixed costs:
Wages and salaries		97,800
Occupancy costs		80,180
Total cost	$	313,104

Required:

Complete the flexible budget for 8,800 patient-visits per month. (Omit the "$" sign in your response.)

	Cost Formula (per patient-visit)	Flexible Budget Based on 8,800 Patient-Visits
Variable costs:
Supplies	$ 8.39	$
Laundry	7.89
Fixed costs:
Wages and salaries
Occupancy costs
Total cost		$

Filkins Clinic bases its budgets on the activity measure patient-visits. During February, the clinic

Filkins Clinic bases its budgets on the activity measure patient-visits. During February, the clinic planned for 4,400 patient-visits, but the actual level of activity was 4,600 patient-visits. The clinic has provided the following data concerning the formulas it uses in its budgeting:

	Fixed element per month			Variable element per patient-visit
Revenue				$	32.60
Personnel expenses	$	31,900		$	10.00
Medical Supplies	$	1,900		$	6.00
Occupancy expenses	$	6,900		$	2.00
Administrative expenses	$	5,900		$	0.20

Required:

Complete the report showing the clinic's activity variances for February. (Input all amounts as positive values. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Omit the "$" sign in your response.)

Filkins Clinic Activity Variances For the Month Ended February 28
Revenue	$	F
Expenses:
Personnel expenses		U
Medical Supplies		U
Occupancy expenses		U
Administrative expenses		U
Total expense		U
Net operating income	$	F

Explanation:

Filkins Clinic Activity Variances For the Month Ended February 28
	Planning Budget		Flexible  Budget		Activity Variances
Patient-visits (q)		4,400		4,600
Revenue ($32.60q)	$	143,440	$	149,960	$	6,520	F
Expenses:
Personnel expenses ($31,900 + $10.00q)		75,900		77,900		2,000	U
Medical Supplies ($1,900 + $6.00q)		28,300		29,500		1,200	U
Occupancy expenses ($6,900 + $2.00q)		15,700		16,100		400	U
Administrative expenses ($5,900 + $0.20q)		6,780		6,820		40	U
Total expense		126,680		130,320		3,640	U
Net operating income	$	16,760	$	19,640	$	2,880	F

Voytek Corporation bases its budgets on the activity measure customers served. During October, the company planned to serve 49,000 customers, but actually served 50,000 customers. The company has provided the following data concerning the formulas it uses in its budgeting:

Voytek Corporation bases its budgets on the activity measure customers served. During October, the company planned to serve 49,000 customers, but actually served 50,000 customers. The company has provided the following data concerning the formulas it uses in its budgeting:

	Fixed element per month			Variable element per customer
Revenue				$	3.87
Wages and salaries	$	38,300		$	1.34
Supplies	$	0		$	0.64
Insurance	$	8,800		$	0.00
Miscellaneous	$	8,300		$	0.54

Required:

Complete the report showing the company's activity variances for October. (Input all amounts as positive values. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Omit the "$" sign in your response.)

Voytek Corporation Activity Variances For the Month Ended October 31
Revenue	$	F
Expenses:
Wages and salaries		U
Supplies		U
Insurance		None
Miscellaneous		U
Total expense		U
Net operating income	$	F

Explanation:

Voytek Corporation Activity Variances For the Month Ended October 31
	Planning Budget		Flexible  Budget		Activity Variances
Customers served (q)		49,000		50,000
Revenue ($3.87q)	$	189,630	$	193,500	$	3,870	F
Expenses:
Wages and salaries ($38,300 + $1.34q)		103,960		105,300		1,340	U
Supplies ($0.64q)		31,360		32,000		640	U
Insurance ($8,800)		8,800		8,800		0	None
Miscellaneous ($8,300 + $0.54q)		34,760		35,300		540	U
Total expense		178,880		181,400		2,520	U
Net operating income	$	10,750	$	12,100	$	1,350	F

Perfect Systems borrows $160,000 cash on May 15, 2011, by signing a 60-day, 6% note. 1. On what date does this note mature?

Perfect Systems borrows $160,000 cash on May 15, 2011, by signing a 60-day, 6% note.   

1.	On what date does this note mature?
	July 14, 2011

  

2.	Assume the face value of the note equals $160,000, the principal of the loan.

  

(a)	Prepare the journal entries to record issuance of the note. (Omit the "$" sign in your response)

  

Date		General Journal	Debit	Credit
May	15	Cash
		Notes payable

  

(b)	Prepare the journal entries to record payment of the note at maturity. (Use 360 days a year. Do not round intermediate calculations and round your final answers to the nearest dollar amount. Omit the "$" sign in your response)

  

Date	General Journal	Debit	Credit
July 14	Interest expense
	Notes payable
	Cash

Explanation: 1.

Maturity date = May 15 + 60 days = July 14, 2011.

 
2

Calculation of Interest Expense

Principal	$	160,000
× Interest rate		6	%
× Fraction of year		60/360
Total interest	$	1,600