Question

Managerial Accounting: Creating Value in a Dynamic Business Environment (11th Edition)

Ch. 5 prob 52 parts 1, 2, and 3

I think I understand what to do, but I'd like to check my answers to be sure.

My answers are bold.

1)	Activity cost pool	Budgeted Overhead Cost	Cost driver	Budgeted Level	Rate	Needed per 1,000 boxes	Activity Cost Pool
	Machine setups	$          250,000	No. of setups	125	$    2,000	5	$                          10,000
	Material handeling	$            75,000	Weight of material	37500	$             2	10000	$                          20,000
	Hazardous waste control	$            25,000	Weight of haz chem	5000	$             5	2000	$                          10,000
	Quality control	$            75,000	No. of inspections	1000	$          75	10	$                                750
	Other	$          200,000	Machine hours	20000	$          10	500	$                            5,000
	Total	$          625,000					$                          45,750
2)	Activity Cost pool	$            45,750
	No. of boxes	1000
	Overhead cost per unit	$               45.75
3)	Budgeted Overhead	$          625,000
	Machine hours	20000
	Predetermined overhead rate (per hr.)	$               31.25
	Total overhead for job	$            45,750
	Machine hours needed for job	500
	Adjusted predetermined rate (per hr.)	$               91.50

Answer 1

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Ans:

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