A | Overhead allocated | |||||||||||
Activity | Cost driver | Rate | Cats | Dogs | Total | Cost | Total activity | Rate | Cats | Dogs | ||
(cost/total activity) | ||||||||||||
Production setup | Setups | $2,000 | $80,000 | $120,000 | $200,000 | $200,000 | 100 | $2,000 | 40 | 60 | ||
Material Handling | Part | $500 | $24,000 | $36,000 | $60,000 | $60,000 | 120 | $500 | 48 | 72 | ||
Packaging & Shipping | Units shipped | $0.30 | $48,000 | $72,000 | $120,000 | $120,000 | 400000 | $0.30 | 160000 | 240000 | ||
Totals | $380,000 | $380,000 | ||||||||||
Overhead allocated | ||||||||||||
B | Cats | Dogs | Total | |||||||||
Units produced | 160000 | 240000 | 400000 | |||||||||
Labor hours per unit | 1 | 2 | ||||||||||
total labor hours | 160000 | 480000 | ||||||||||
Overhead rate per hour | 0.59375 | 0.59375 | ||||||||||
Overhead allocation | 95,000 | 285,000 | 380,000 | |||||||||
*Feel free to ask any doubt related to this question in the comment section. Please give your valuable feedback.
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