Answer
d. $ 400,000
Explanation:
Total Overheads applied = Machine hours * Machine hour rate
= 10,000 * 40
=$ 400,000
In case of any doubt, please comment.
The Mega Construction Company recently switched to activity-based costing (ABC) from the department allocation method. The...
The Mega Construction Company recently switched to activity based costing (ABC) from the department allocation method. The department method allocated overhead costs at a rate of $60 per machine hour The cost accountant for the Finishing Department has gathered the following data Amount $ 95 Activity Matenal handling Mochine Setups tes Quality Control Cost Drivers Tons of material Handled Number of production runs Machine Hours Number of inspections 2500 thing Department groductions using a total of 15.000 machine hours in...
Recently, MAKS Corp. switched to activity-based costing (ABC) from the department allocation method, where the company allocated overhead costs at a rate of $70 per machine hour. The company reported the following data for its Finishing Department: Activity Material handling Machine setups Utilities Quality control Cost Drivers Tons of material handled Number of production runs Machine hours Number of inspections Amount $ 90 3,600 30 400 During May, the company purchased and used $135,000 of direct materials at $25 per...
Southwest Components recently switched to activity-based costing from the department allocation method. The Fabrication Department manager has estimated the following cost drivers and rates: Activity Centers Cost Drivers Rate per Cost Driver Unit Materials handling Pounds of material handled $ 17 per pound Quality inspections Number of inspections $ 210 per inspection Machine setups Number of machine setups $ 2,500 per setup Running machines Number of machine-hours $ 22.00 per hour Direct materials costs were $282,000 and direct labor costs...
Southwest Components recently switched to activity-based costing from the department allocation method. The Fabrication Department manager has estimated the following cost drivers and rates: Activity Centers Cost Drivers Rate per Cost Driver Unit Materials handling Pounds of material handled $ 16 per pound Quality inspections Number of inspections $ 220 per inspection Machine setups Number of machine setups $ 2,900 per setup Running machines Number of machine-hours $ 24.00 per hour Direct materials costs were $317,000 and direct labor costs...
Southwest Components recently switched to activity-based costing
from the department allocation method. The Fabrication Department
manager has estimated the following cost drivers and rates:
Activity Centers
Cost Drivers
Rate per
Cost Driver Unit
Materials handling
Pounds of material handled
$
15
per pound
Quality inspections
Number of inspections
$
230
per inspection
Machine setups
Number of machine setups
$
2,700
per setup
Running machines
Number of machine-hours
$
22.00
per hour
Direct materials costs were $304,000 and direct labor costs...
Catalina Sails makes sails for small sailboats. It recently switched to activity-based costing from the department product costing method. The manager of Department Y, which manufactures the sails, has identified the following cost drivers and rates for overhead: Activity Centers Cost Drivers Rate per Cost Driver Unit Materials handling Yards of material handled $ 0.90 per yard Quality inspections Number of inspections $ 110 per inspection Machine setups Number of machine setups $ 800 per setup Running machines Number of...
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even have a number.
Southwest Components recently switched to activity-based costing from the department allocation method. The Fabrication Department manager has estimated the following cost drivers and rates: Activity Centers Materials handling Quality inspections Machine setups Running machines Cost Drivers Pounds of material handled Number of inspections Number of machine setups Number of machine-hours Rate per Cost Driver Unit $ 36 per pound $ 450 per inspection $5,400 per setup $ 45...
Activity-Based Costing Slack Corporation has the following predicted indirect costs and cost drivers for 2016 for the given activity cost pools Fabrication Department Finishing Department Cost Driver Maintenance Materials handling Machine setups Inspections $35,000 30,000 70,000 $25,000 Machine hours 15,000 Material moves 5,000 Machine setups 25,000 Inspection hours $135,000 $70,000 The following activity predictions were also made for the year: Machine hours Material moves Machine setups Inspection hours Fabrication Department Finishing Department 5,000 1,500 50 1,000 10,000 3,000 700 It...
Calculating Activity-Based Costing Overhead Rates Assume that manufacturing overhead for Glassman Company consisted of the following activities and costs: Setup (1,000 setup hours) $ 146,000 Production scheduling (400 batches) 60,000 Production engineering (60 change orders) 90,000 Supervision (2,000 direct labor hours) 56,000 Machine maintenance (12,000 machine hours) 96,000 Total activity costs $ 448,000 The following additional data were provided for Job 845: Direct material costs $ 8,000 Direct labor cost (5 Milling direct labor hours; 35 Finishing direct labor hours)...
Calculating Activity-Based Costing Overhead Rates Assume that manufacturing overhead for Glassman Company consisted of the following activities and costs: Setup (1,000 setup hours) $ 146,000 Production scheduling (400 batches) 60,000 Production engineering (60 change orders) 90,000 Supervision (2,000 direct labor hours) 56,000 Machine maintenance (12,000 machine hours) 96,000 Total activity costs $ 448,000 The following additional data were provided for Job 845: Direct material costs $ 8,000 Direct labor cost (5 Milling direct labor hours; 35 Finishing direct labor hours)...