A company has identified the following overhead costs and cost drivers for the coming year: (CIA...

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A company has identified the following overhead costs and cost drivers for the coming year: (CIA adapted) Overhead Item Machi

business accounting

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Answer 1

Answer #1

Activity rate=Respective cost/Respective activity

Activity rate for:

Machine setup=(20,000/200)=$100 per setups

Inspection=(130,000/6500)=$20 per inspection

Material handling=80,000/8000=$10 per material moves

Engineering=(50,000/1000)=$50 per engineering hour

Hence total overhead assigned to Job 101=activity rate*Respective activity

=(100*1)+(20*20)+(10*30)+(50*10)

=$1300

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Answer 2

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A company has identified the following overhead costs and cost drivers for the coming year: (CIA...

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