Question

Bluefield has decided to use an ABC costing system and has identified the following detailed information about its cost pools and cost drivers: Activity cost pools Materials handling Machine maintenance $57,960 $13,230 Cost drivers Number of material moves Number of machine hours 460 49,000 Required: 1. Calculate Bluefield's activity rate for each cost pool. 2. Determine the amount of overhead assigned to Bluefield's products if each has the following activity demands: Product A Product B Number of material moves 200 260 Number of machine hours 16,700 32,300 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate Bluefield's activity rate for each cost pool. (Round your final answer for per material moves to nearest dollar amount and per machine hour to 4 decimal places.) Activity Rate Materials Handling per Material Move Machine Maintenance per Machine Hour < Required 1 Required 2 >

Answer 1

Determine the Activity rate for each activity pool Activity rate=Cost Total Cost pool total Activt pool/ Activity Materila Handling 57960 460 126.00 Machine Maintenance 13230 49000 0.27 Activity rate=Cost pool/ Activity Product A Prodcut B OH allocated = OH allocated Activity Activy *rate Activity = Activy *rate 25200 260 32760 16700 4509 323001 8721 29709 41481 Activity Rate Materila Handling 126.00 Machine Maintenance 0.27 Total verehead Cost 200 Activity Cost pool Materila Handling Machine Maintenance Answers Overehead Rate 126.0000 Per Material Move 0.2700 PerMH Answers Product A Prodcut B 29709.00 41481.00 Overhead cost assigned