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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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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