Brief Exercise 17-6 Activity Cost Pools Estimated Overhead Expected Use of Cost

Question

Brief Exercise 17-6

Activity Cost Pools

Estimated
Overhead

Expected Use of
Cost Drivers per Activity

Activity-based overhead rates

Brief Exercise 17-6

Weisman, Inc. uses activity-based costing as the basis for information to set prices for its six lines of seasonal coats.

Activity Cost Pools

Estimated
Overhead

Expected Use of
Cost Drivers per Activity

Designing $448,000 10,600 designer hours Sizing and cutting 4,230,000 156,000 machine hours Stitching and trimming 1,440,000 76,500 labor hours Wrapping and packing 334,000 34,000 finished units
Compute the activity-based overhead rates using the following budgeted data for each of the activity cost pools. (Round answers to 2 decimal places, e.g. 12.25.)

Activity-based overhead rates

Designing $

per designer hour Sizing and cutting $

per machine hour Stitching and trimming $

per labor hour Wrapping and packing $

per finished unit

Explanation / Answer

The correct answer is :

Note :

Activity-based overhead rates Designing $ 42.26 per designer hour Sizing and cutting $ 27.12 per machine hour Stitching and trimming $ 18.82 per labor hour Wrapping and packing $ 9.82 per finished unit

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