costing system contains the following six activity cost pools and activity rates

Question

costing system contains the following six activity cost pools and activity rates: $9.00 per direct labor-hour $2.00 per machine-hour $40.00 per setup Supporting direct labor Machine processing Machine setups Production orders Shipments Product sustaining $170.00 per order $130.00 per shipment $850.00 per product Activity data have been supplied for the following two products: Number of units produced per year Direct labor-hours Machine-hours Machine setups Production orders Shipments Product sustaining 1,000 3,200 200 2,000 40 30 18 Required Determine the total overhead cost that would be assigned to each of the products listed above in the activity-based costing system K425 M67 ivity Cost Pool Supporting direct labor Machine processing Machine setups Production orders Shipments Product sustaining Total overhead cost O Type here to search DELL

Explanation / Answer

1 2 3 4 = 1 X3 5 = 2X 3 Overhead Cost Driver Expected Activity Rate per Activity ($) Overhead Cost K425 M67 K425 ($) M67 ($) Supporting Direct Labor Direct Labor Hours 1000 40 9 9000 360 Macine Processing Machine Hours 3200 30 2 6400 60 Machine Setups Machine Setups 9 2 40 360 80 Production Orders Production Orders 9 2 170 1530 340 Shipments Shipments 18 2 130 2340 260 Product Sustaining Product 2 2 850 1700 1700 Total Overhead Cost 21330 2800

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