Homework Answers
Answer is $17,448
Overhead Costs:
Machining:
Overhead Cost = $15,800
Total Machine hours = 4,800 + 15,200
Total Machine hours = 20,000
Activity Rate = Overhead Cost / Total Machine hours
Activity Rate = $15,800 / 20,000
Activity Rate = $0.79 per machine hours
Order Filing:
Overhead Cost = $6,400
Total Order filled = 300 + 1,700
Total Order filled = 2,000
Activity Rate = Overhead Cost / Total Order filled
Activity Rate = $6,400 / 2,000
Activity Rate = $3.20 per order filled
Product S1:
Overhead Cost Assigned = 15,200 * $0.79 + 1,700 * $3.20
Overhead Cost Assigned = $17,448
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Handal Corporation uses activity-based costing to compute product margins. Overhead costs have already been allocated to the company's three activity cost pools--Machining, Order Filling, and Other. The costs in those activity cost pools appear below: Machining $ 6,077 Order Filling $ 16,274 Other $ 5,600 Machining costs are assigned to products using machine-hours (MHs) and Order Filling costs are assigned to products using the number of orders. The costs in the Other activity cost pool are not assigned to products....
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Doede Corporation uses activity-based costing to compute product margins. In the first stage, the activity-based costing...
Doede Corporation uses activity-based costing to compute product margins. In the first stage, the activity-based costing system allocates two overhead accounts--equipment depreciation and supervisory expense--to three activity cost pools--Machining, Order Filling, and Other--based on resource consumption. Data to perform these allocations appear below: Overhead costs: Equipment depreciation $ 28,000 Supervisory expense $ 14,100 Distribution of Resource Consumption Across Activity Cost Pools: Activity Cost Pools Machining Order Filling Other Equipment depreciation 0.50 0.30 0.20 Supervisory expense 0.50 0.20 0.30 In the...
Doede Corporation uses activity-based costing to compute product margins. In the first stage, the activity-based costing...
Doede Corporation uses activity-based costing to compute product margins. In the first stage, the activity-based costing system allocates two overhead accounts--equipment depreciation and supervisory expense--to three activity cost pools--Machining, Order Filling, and Other--based on resource consumption. Data to perform these allocations appear below: Overhead costs: Equipment depreciation $ 35,000 Supervisory expense $ 12,000 Distribution of Resource Consumption Across Activity Cost Pools: Activity Cost Pools Machining Order Filling Other Equipment depreciation 0.40 0.30 0.30 Supervisory expense 0.40 0.20 0.40 In the...
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Chapter 7 In-Class Case Vontungein Corporation uses activity-based costing to compute product margins. In the first stage, the activity-based costing system allocates two overhead accounts - equipment depreciation and supervisory expense - to three activity cost pools - Machining, Order Filing, and Other. Allocation is based on resource consumption. Data to perform these allocations appear below: Overhead costs: Equipment depreciation. Supervisory expenses $64,000 $4,000 Distribution of resource consumption across activity cost pools: Activity Cost Pools Order Filling 0.30 0.10 Machining...
Doede Corporation uses activity-based costing to compute product margins. In the first stage, the activity-based costing system allocates two overhead accounts equipment depreciation and supervisory expense to three activity cost pools-Machining Order Filling, and Other-based on resource consumption Data to perform these allocations appear below: Overhead costs Equipment depreciation Supervisory expense $88,000 $12,700 Distribution of Resource Consumption Across Activity Cost Pools: Equipment depreciation Supervisory expense Activity Cost Pools Machining Order Filling 0.50 9.30 0.5e 0.29 Other @.20 0.30 In the...
Stroth Corporation uses activity-based costing to compute product margins. Stroth Corporation manufactures and sells only two products - C4 and L4. Overhead costs have already been allocated to the company's three activity cost pools-Machining, Order Filling, and other. The costs in those activity cost pools appear below: ent Machining Order filling Other $5,400 $2,500 $13,100 Machining costs are assigned to products using machine-hours (MHs) and Order Filling costs are assigned to products using the number of orders. The costs in...
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