Question

Two Step Dance manufactures all types of shoes for the avid cancer, like ballet slippers and tap shoes. Two Step Dance uses the activity based costing method to allocate manufacturing overhead to its products. Below is a table summarizing the Estimated MOH costs and their respective drivers. Using this information, what is the MOH Rate for the Packaging activity? Round your answer to the nearest penny (i.e. Xxx). Activity Estimated MOH Estimated Basis Purchasing $20,000 2,500 purchase orders Assembling $75,000 60,000 DL hours Packaging $35,000 5,000 units Inspecting $10,000 2,000 batches

Answer 1

Using Activity based costing method. Given the below data: Activity Purchasing Assembling Packaging Suspecting Estimated MOH $ 20,000 $ 75,000 $ 35,000 $ 10,000 Estimated Basis 2,500 purchase orders 60,000 OL hoding 5000 units 2,000 batches. calculation of MOH Rate for packaging activity. = $ 35,000 Estimated MoH for Packaging Estimated Basis Sooo Knits MOH Rate Estimated Overhead costs Estimated activity base conits: MOH Rate for Packaging . 7$ 35,000 5000 7 $ per ( cenito & MOH Rate for Packaging