The Jester Manufacturing Company produces two products: One is a recreational wh
ID: 2460955 • Letter: T
Question
The Jester Manufacturing Company produces two products: One is a recreational whitewater kayak molded and the other product is a high performance competition kayak model. Jester retained a consultant to create an activity based costing system and provided the following data: Actual & Estimated Activity Cost Pool Est. Amount Driver Rec.
Kayaks Competition Kayaks Building $35,000 Square Footage 8,000 2,000 Quality Control $20,000 number of inspections 300 200 Materials Ordering $25,000 Number of order 200 100 How much overhead was assigned to the Recreational Kayaks using ABC. Please round to 2 decimals when calculating the PDORs.
Explanation / Answer
recreational whitewater kayak molded performance competition kayak model total recreational whitewater kayak molded performance competition kayak model Building $35,000 square footage 8000 2000 10000 Building 35000 28000 7000 quality control 20000 number of inspection 300 200 500 quality control 20000 12000 8000 Material handling 25000 number of orders 200 100 300 material handling 25000 16666.67 8333.333 total overhead assigned 80000 56666.67 23333.33
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