Fick Corporation is a diversified manufacturer of consumer goods. The company's activity-based costing system has the following seven activity cost pools:
Activity Cost Pool |
Estimated Overhead Cost |
Expected Activity |
|||
Labor-related | $ | 24,400 | 4,000 | direct labor-hours | |
Machine-related | $ | 5,000 | 5,000 | machine-hours | |
Machine setups | $ | 13,200 | 400 | setups | |
Production orders | $ | 24,500 | 500 | orders | |
Product testing | $ | 34,100 | 1,100 | tests | |
Packaging | $ | 46,800 | 3,900 | packages | |
General factory | $ | 49,600 | 4,000 | direct labor-hours |
Compute the company's predetermined overhead rate, assuming that the company uses a single plantwide predetermined overhead rate based on direct labor-hours. (Round your answer to 2 decimal places.)
predetermined overhead rate ___________ per DLH
Total Estimated Overhead Cost = $24400+5000+13200+24500+34100+46800+49600 = $197,600
Predetermined overhead rate = Total Estimated Overhead Cost / direct labor-hours
= $197,600 / 4,000 hours
= $49.40 per hour
Fick Corporation is a diversified manufacturer of consumer goods. The company's activity-based costing system has the...
R Corporation is a diversified manufacturer of consumer goods.
The company's activity-based costing system has the following seven
activity cost pools:
Activity Cost Pool
Estimated
Overhead Cost
Expected
Activity
Labor-related
$
24,400
4,000
direct
labor-hours
Machine-related
$
5,000
5,000
machine-hours
Machine
setups
$
13,200
400
setups
Production
orders
$
24,500
500
orders
Product
testing
$
34,100
1,100
tests
Packaging
$
46,800
3,900
packages
General
factory
$
49,600
4,000
direct
labor-hours
1. Compute the activity rate for each activity cost pool....
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Rustafson Corporation is a diversified manufacturer of consumer goods. The company's activity-based costing system has the following seven activity cost pools: Activity Cost Pool Labor-related Machine-related Machine setups Production orders Product testing Packaging General factory Estimated Overhead Cost $ 24,400 $5,000 $13,200 $ 24,500 $ 34,100 $ 46,800 $ 49,600 Expected Activity 4,000 direct labor-hours 5,000 machine-hours 400 setup 500 orders 1.100 tento 3.900 packages 4,000 direct labor-hours Exercise 4-2 Part 1 Required: 1. Compute the activity rate for each...
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