Rocoe Company produces a variety of garden tools in a highly
automated manufacturing facility. The costs and cost drivers
associated with four activity cost pools are given below:
Activities: | Unit Level | Batch Level | Product Level | Facility Level |
Total Cost | $32,480 | $19,840 | $5,680 | $49,300 |
Total Cost Driver Volume | 5,800 labor hours | 400 set ups | % of use | 29,000 units |
Production of 26,000 units of a hand-held tiller required 320 labor
hours, 41 setups, and consumed 40% of the product sustaining
activities. Assuming the company uses activity-based costing, how
much total overhead will be allocated to this tool? (Do not
round intermediate calculations. Round final answer to the nearest
whole dollar.)
Calculate overhead allocated
Unit level (32480/5800*320) | 1792 |
Batch level (19840/400*41) | 2033.60 |
Product level (5680*40%) | 2272 |
Facility level (49300/29000*26000) | 44200 |
Total overhead | 50298 |
Rocoe Company produces a variety of garden tools in a highly automated manufacturing facility. The costs and cost driver...
Valpar Company produces several lines of laundry hampers. The factory is highly automated and uses an activity-based costing system to allocate overhead costs to its various products. During the upcoming period the company expects to produce 72,000 units. The costs and cost drivers associated with four activity cost pools are given below: Activities Unit Level Batch Level Product Level Facility Level Cost $20,000 $8,000 $15,000 $36,000 Cost Driver 4,000 labor hours 200 set-ups % of use 72,000 units Production of...
Jordan Company produces commercial gardening equipment. Since production is highly automated, the company allocates its overhead costs to product lines using activity-based costing. The costs and cost drivers associated with the four overhead activity cost pools follow: Activities Unit Level Batch Level Product Level Facility Level Cost $ 29,000 $ 17,390 $ 19,000 $ 361,000 Cost driver 1,000 labor hrs. 37 setups Percentage of use 19,000 units Production of 720 sets of cutting shears, one of the company’s 20 products,...
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