2. The activity-based overhead rates for each of the four activities: Activity E

Question

2. The activity-based overhead rates for each of the four activities:

Activity

Estimated Overhead

Expected use of Cost Drivers

Activity-Based Overhead Rates

Picking prints

$36,000

102,000 prints

$0.30 per print

Inventory selection and management

$91,700

131,000 components

$0.70 per component

Web-site optimization:

Unframed

$25,800

100,000 prints at capacity

$0.26 per print at capacity

Framed

$103,200

25,000 prints at capacity

$4.13 per print at capacity

Framing and matting

$123,900

59,000 components at capacity

$2.10 per component at capacity

3. The product costs for the following items using ABC:

Cost Elements

Lance Armstrong unframed print

John Elway print in steel frame,

no mat

Lambeau Field print in wood frame with mat

Direct Material

Print

12

16

20

Frame and glass

0

4

6

Matting

0

0

4

Direct Labor

(10/60×12)

2

Activity

Estimated Overhead

Expected use of Cost Drivers

Activity-Based Overhead Rates

Picking prints

$36,000

102,000 prints

$0.30 per print

Inventory selection and management

$91,700

131,000 components

$0.70 per component

Web-site optimization:

Unframed

$25,800

100,000 prints at capacity

$0.26 per print at capacity

Framed

$103,200

25,000 prints at capacity

$4.13 per print at capacity

Framing and matting

$123,900

59,000 components at capacity

$2.10 per component at capacity

Explanation / Answer

Hi You have done ABC steps correctly. Pl clarify what is yourquestion. Unless you post the actual problem, it is not possible to give asolution. Pl post actual question & then ur solution so we can value-add& respond to missing portions Thanks

Related Questions

Navigate

• Browse (All)
• Browse 2
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.