Question

Please solve this using an Excel Spreadsheet (that's what it asks for in the question)

Answer 1

Requirement 1
Compute the Activity Rate for each of activity cost pools :
Activity Cost Pool	Estimated Overhead cost (A)	Expected Activity (B)	Activity Rate (A/B)
Materials Handling	$                                 53,100.00	900	$           59.00	Per Material Move
Machine Maintenace	$                                 21,000.00	84000	$            0.25	Per Machine hour
	$                                 74,100.00
Requirement 2
Determine the amount of overhead assigned to Fellar’s products if they have the following activity demands:
	Product A	Product B
Number of Material moves	540	360
Per Material Move	$                                        59.00	$                          59.00
Total Overhead (A)	$                 31,860.00	$        21,240.00
Number of Machine Hours	42200	41800
Per Machine hour	$                                           0.25	$                            0.25
Total Overhead (B)	$                 10,550.00	$        10,450.00
Total Overhead Cost (A+B)	$                 42,410.00	$        31,690.00
Determine the amount of overhead assigned to Fellar’s products if they have the following activity demands:
	Product A	Product B
Number of Material moves	600	360
Per Material Move	$                                        59.00	$                          59.00
Total Overhead (A)	$                 35,400.00	$        21,240.00
Number of Machine Hours	42000	33000
Per Machine hour	$                                           0.25	$                            0.25
Total Overhead (B)	$                 10,500.00	$          8,250.00
Total Overhead Cost (A+B)	$                 45,900.00	$        29,490.00