Question

Fellar Corp. has identified the following information: Activity cost pools Materials handling Machine maintenance Cost drivers Number of material moves Number of machine hours $42,560 18,360 760 68,000 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 A Product B 580 180 42,800 25,200 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 Machine Maintenance per Material Move per Machine Hour Required 2 >

Answer 1

1 Materials Handling Machine Maintenance $ $ 56.00 Per material move 0.27 Per machine hour 2 Product A Product B Total OH assigned $ 44,036.00 $ 16,884.00 3 Product A Product B Total OH assigned $ 44,036.00 $ 16,884.00

Based On Activity Based costing 1 Activity Rate for each cost pool Overhead cost pool Materials Handling Machine Maintenance Total OH Cost $ $ $ OH COST 42,560.00 18,360.00 60,920.00 Activity level Cost drivers Allocation rate 760 No.of Material Moves $ 56.00 68,000 No.of Machine Hours $ 0.27 2 Segrecation of activity for each product: Overhead cost pool Materials Handling Machine Maintenance Allocation rate $ 56.00 $ 0.27 Product A Activity Driver 580 $ 42,800 $ $ Product B Overhead Allocation rate Activity Driver 32,480.00 $ 56.00 180$ 11,556.00 $ 0.27 25,200 $ 44,036.00 $ Overhead 10,080.00 6,804.00 16,884.00 3 Segrecation of activity for each product: Overhead cost pool Materials Handling Machine Maintenance Allocation rate $ 56.00 $ 0.27 Product A Activity Driver 580$ 42,800 $ $ Product B Overhead Allocation rate Activity Driver Overhead 32,480.00 $ 56.00 180 $ 10,080.00 11,556.00 $ 0.27 25,200 $ 6,804.00 44,036.00 $ 16,884.00

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