6 spire 6gmail C STEM CELL HAIR Help Save &Exit Submit The following is taken fr

Question

6 spire 6gmail C STEM CELL HAIR Help Save &Exit Submit The following is taken from Ronda Co.'s internal records of its factory with two production departments. The cost driver for indirect labor and suppliles is direct labor costs, and the cost driver for the remaining overhead items is number of hours of machine use 2,000 1,200 Depar $18,800 200 Totals $32,000 3,200 $12,200 5,400 4,000 3,000 2,600 Rent and utilities Labor Department 1 using activity-based costing. (Round activity rate answers to 2 Compute the total amount of overhead cost allocated to clecimal places to be a Estimated Estimated Cost driver

Explanation / Answer

Calculate overhead allocated to department 1

Cost to be allocated Estimated cost Estimated cost driver Activity rate Cost driver quantity incurred OH allocated Indirect labour and supplies 8000 32000 Direct labour 25% of direct labour cost 18800 4700 Rent, utilities,general office and depreciation 19200 3200 Machine hour 6 per machine hour 2000 12000 Total 16700

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