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What is the cost driver rate for general accounting? What is the cost driver rate for quality control? What costing method is used by companies that provide meals to clients?

Accounting

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Answer

C

Step-by-step solution

11 steps

Here are the answers to the questions:

Part 25· 2 steps

The cost driver rate for general accounting is?

  1. Identify the total cost for general accounting and its cost driver.

    General accounting cost = Le 6,000
    Number of customers (cost driver) = 200

  2. Calculate the cost driver rate.

    Cost driver rate=General accounting costNumber of customers\text{Cost driver rate} = \frac{\text{General accounting cost}}{\text{Number of customers}} Cost driver rate=Le 6,000200 customers\text{Cost driver rate} = \frac{\text{Le } 6,000}{200 \text{ customers}} Cost driver rate=Le 30.00/customer\text{Cost driver rate} = \text{Le } 30.00/\text{customer}

    The correct option is C.

    Le 30.00/customer\boxed{\text{Le } 30.00/\text{customer}}

Part 26· 2 steps

What is the cost driver rate for quality control?

  1. Identify the total cost for quality control and its cost driver.

    Quality control cost = Le 22,000
    Number of inspections (cost driver) = 1,100

  2. Calculate the cost driver rate.

    Cost driver rate=Quality control costNumber of inspections\text{Cost driver rate} = \frac{\text{Quality control cost}}{\text{Number of inspections}} Cost driver rate=Le 22,0001,100 inspections\text{Cost driver rate} = \frac{\text{Le } 22,000}{1,100 \text{ inspections}} Cost driver rate=Le 20.00/inspection\text{Cost driver rate} = \text{Le } 20.00/\text{inspection}

    The correct option is B.

    Le 20.00/inspection\boxed{\text{Le } 20.00/\text{inspection}}

Part 27

Companies that exist to provide meals to their clients use service costing. This method is used for services where the output is intangible.
The correct option is D.

Part 28· 2 steps

Calculate the normal loss for the process.

  1. Identify the units introduced and the normal loss percentage.

    Units introduced = 5,000 units
    Normal loss = 5%

  2. Calculate the normal loss in units.

    Normal loss units=Units introduced×Normal loss percentage\text{Normal loss units} = \text{Units introduced} \times \text{Normal loss percentage} Normal loss units=5,000 units×0.05\text{Normal loss units} = 5,000 \text{ units} \times 0.05 Normal loss units=250 units\text{Normal loss units} = 250 \text{ units}

    The correct option is C.

    250 units\boxed{250 \text{ units}}

Part 29· 2 steps

Production in the process resulted in

  1. Calculate the expected good units.

    Expected good units=Units introduced−Normal loss units\text{Expected good units} = \text{Units introduced} - \text{Normal loss units} Expected good units=5,000 units−250 units\text{Expected good units} = 5,000 \text{ units} - 250 \text{ units} Expected good units=4,750 units\text{Expected good units} = 4,750 \text{ units}

  2. Compare expected good units with actual production.

    Actual production = 4,800 units
    Since actual production (4,800 units) is greater than expected good units (4,750 units), there is an abnormal gain.

    Abnormal gain=Actual production−Expected good units\text{Abnormal gain} = \text{Actual production} - \text{Expected good units} Abnormal gain=4,800 units−4,750 units\text{Abnormal gain} = 4,800 \text{ units} - 4,750 \text{ units} Abnormal gain=50 units\text{Abnormal gain} = 50 \text{ units}

    The correct option is C.

    Abnormal gain of 50 units\boxed{\text{Abnormal gain of 50 units}}

Part 30· 3 steps

What is the value of abnormal loss or gain for the process?

  1. Determine the total cost incurred for the process.

    Units introduced into process: 5,000 units for GH¢ 30,000
    Actual production: 4,800 units for GH¢ 52,800
    The GH¢ 52,800 represents the total cost incurred for the process, including the initial input cost and any conversion costs.

  2. Calculate the cost per unit of good production.

    Cost per unit=Total cost incurredExpected good units\text{Cost per unit} = \frac{\text{Total cost incurred}}{\text{Expected good units}} Cost per unit=GH¢ 52,8004,750 units\text{Cost per unit} = \frac{\text{GH¢ } 52,800}{4,750 \text{ units}} Cost per unit≈GH¢ 11.11579/unit\text{Cost per unit} \approx \text{GH¢ } 11.11579/\text{unit}

  3. Calculate the value of the abnormal gain.

    Value of abnormal gain=Abnormal gain units×Cost per unit\text{Value of abnormal gain} = \text{Abnormal gain units} \times \text{Cost per unit} Value of abnormal gain=50 units×GH¢ 11.11579/unit\text{Value of abnormal gain} = 50 \text{ units} \times \text{GH¢ } 11.11579/\text{unit} Value of abnormal gain≈GH¢ 555.79\text{Value of abnormal gain} \approx \text{GH¢ } 555.79

    Rounding to the nearest whole number, this is GH¢ 556. The closest option is GH¢ 550.
    The correct option is C.

    GH¢ 550\boxed{\text{GH¢ } 550}

Part 31

Normal loss in process costing is considered to be unavoidable. It is an inherent part of the production process that cannot be eliminated, even under efficient operating conditions.
The correct option is C.

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