Question

please show me detailed calculations from one of the last problems answered. thanks

2:28 ft . + Expert Q&A + 00 Expert Answer Anonymous. 16 minutes later Activity Cost Overhead Cost Allocation Basis F Machine Set up 15840 132:88 Purchase Order 76800 672:1248 2 Order Size 42160 1290:1190 2 Total Total No. of Units Overhead Cost per Unit Note: Please free to ask for any detailed calculat above sum. 00 Was this answer helpful? Ono

Answer 1

rate positively ..

	First we have to compute the overhead rate per activity.
		i	ii	iii=i/ii
		Estimated overhead	Estimated activity	Rate
	Machine setups	15840	220	72.00
	Purchase orders	76800	1920	40.00
	Order size	42160	2480	17.00
	Computation of overhead rate for each product
		Product F			Product G
i	Machine setups	9504	132*72		6336	88*72
ii	Purchase orders	26880	672*40		49920	1248*40
iii	Order size	21930	1290*17		20230	1190*17
iv=i+ii+iii	Total cost	58314			76486
v	Number of unit	2000			2400
vi=iv/v	Overhead cost per unit	29.16			31.87