Question

$47,170 21,170 Activity cost pools Materials handling Machine maintenance Cost drivers Number of material moves Number of machine hours 890 73,000 Required: 1. Calculate the activity rate for each cost pool. 2. Determine the amount of overhead assigned to Fellar's products if they have the following activity demands: Number of material moves Number of machine hours Product Product B 550 340 42,100 30,900 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Calculate the activity rate for each cost pool. (Round your answers to 2 decimal places.) Activity Rate Material Handling per Material Move Machine Maintenance per Machine Hour Required Required 2 >

Answer 1

25 26 Activity Cost Pool Material Handling Machine Maintenance Overhead (A) 47170 21170 Activity Usage (B) 890 73000 Activity Rate (A/B) 53.00 Per Material Move 0.29 Per Machine Hour 27 28 29 Determine the amount assigned to Fellar's Products 30 31 32 Product A (B) Product B (C) Activity Cost Pool Material Handling Machine Maintenance Activity Rate (A) 53.00 0.29 550 340 Assignment of Overheads Product A (A*B) Product B (AC) 29150 18020 12209 8961 41359 26981 33 42100 30900 34 35 36 37 38 Product A Product B Total Overheads Assigned 41359 26981

39 Using activity proportions, determine the amount of overhead assigned to Fellar's products. 40 41 42 Product A Product B Material Handling (A) % of Proportion (A/890)=(B) 550 61.80% 340 38.20% 890 Overhead (C) Assignment of Overhead (B*C) 47170 29150 47170 18020 43 44 45 46 47 48 49 Product A Product B Machine Maintenance (A) % of Proportion (A/73000)=(B) 42100 57.67% 30900 42.33% 73000 Overhead (C) Assignment of Overhead (B*C) 21170 12209 21170 8961 50 51 52 Product A Product B Total Overheads Assigned 41359 26981 53 54