Consider the generic ABC graphic below, for a standard two-step allocation process. ON Pool 1 ON...

Question

Question

Answer 1

Answer #1

		Costs	Divided by: Total of cost driver	POHR
Overhead pool 1	Cost driver 4	$ 47,000	55	$ 854.54545
Overhead pool 2	Cost driver 1	$ 122,000	12,760	$ 9.56113
Overhead pool 3	Cost driver 5	$ 16,000	1,523	$ 10.50558

Overhead pool 1	Activity 1	Activity 2	Activity 3	Activity 4
Predermined overhead rate	$ 854.54545	$ 854.54545	$ 854.54545	$ 854.54545
Multiply: Cost driver 4	35	12	-	8
Allocated overhead pool 1	$ 29,909.09	$ 10,254.55	$ -	$ 6,836.36

Overhead pool 2	Activity 1	Activity 2	Activity 3	Activity 4
Predermined overhead rate	$ 9.56113	$ 9.56113	$ 9.56113	$ 9.56113
Multiply: Cost driver 1	4,350	-	2,270	6,140
Allocated overhead pool 2	$ 41,590.91	$ -	$ 21,703.76	$ 58,705.33

Overhead pool 3	Activity 1	Activity 2	Activity 3	Activity 4
Predermined overhead rate	$ 10.50558	$ 10.50558	$ 10.50558	$ 10.50558
Multiply: Cost driver 5	820	155	108	440
Allocated overhead pool 3	$ 8,614.58	$ 1,628.37	$ 1,134.60	$ 4,622.46

Final answers:	Activity 1	Activity 2	Activity 3	Activity 4
Allocated overhead pool 1	$ 29,909.09	$ 10,254.55	$ -	$ 6,836.36
Allocated overhead pool 2	$ 41,590.91	$ -	$ 21,703.76	$ 58,705.33
Allocated overhead pool 3	$ 8,614.58	$ 1,628.37	$ 1,134.60	$ 4,622.46
Allocated overhead costs	$ 80,114.58	$ 11,882.91	$ 22,838.36	$ 70,164.15
Allocated overhead costs (rounded)	$ 80,115	$ 11,883	$ 22,838	$ 70,164

Answer 2