Question

CALCULATOR FULL SCREEN PRINTER VERSION BACK NEXT Brief Exercise 4-7 Spud, Inc. a manufacturer of gourmet potato chips, employs activity-based costing. The budgeted data for each of the activity cost pools is provided below for the year 2020. Activity Cost Pools Ordering and receiving Food processing Packaging Estimated Overhead $95,953 497,150 1,680,210 Estimated Use of Cost Drivers per Activity 14,300 orders 61,000 machine hours 441,000 labor hours For 2020, the company had 10,100 orders and used 50,600 machine hours, and labor hours totaled 494,000. Calculate the overhead rates for each activity. (Round answers to 2 decimal places, e.g. 12.25.) Overhead Rates Ordering and receiving 6.71 per order Food processing 8.15 per machine hour Packaging 3.81 per labor hour What is the total overhead applied? Total overhead applied 2362301 Click I wou would like to show Work for this question: One Show Work

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Answer 1

The answers are already correct so i will post the workings to get the answer.

Calculation of Activity rates
Activity Cost Pool	Activity driver	Overhead Cost (A)	Expected Activity (B)	Activity rate (A/B)
Ordering and receiving	Number of orders	$        95,953.00	14300	$               6.71	Per orders
Foods processing	Number of Machine hour	$      497,150.00	61000	$               8.15	Per Machine hour
Packaging	Number of Labor hour	$    1,680,210.00	441000	$               3.81	Per Labor hour

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Activity name	Activity Rates	Activity	ABC Cost
	(A)	(B)	(A x B)
Ordering and receiving	$                       6.71	10100	$         67,771.00
Foods processing	$                       8.15	50600	$       412,390.00
Packaging	$                       3.81	494000	$     1,882,140.00
Total Overheads assigned			$     2,362,301.00