Brief Exercise 17-6 Weisman, Inc. uses activity-based costing as the basis for i

Question

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 Click if you would like to Show Work for this question: Open Show Work

Explanation / Answer

Compute the activity-based overhead rates using the following budgeted data for each of the activity cost pools:

Activity Expected cost Cost driver expected activity Activity rate Designing 448000 Designer hour 10600 42.26 per design hour Sizing and cutting 4230000 Machine hour 156000 27.12 per machine hour Stitching and trimming 1440000 Labour hour 76500 18.82 per labour hour Wrapping and packing 334000 No of units 34000 9.82 per unit

Related Questions

Navigate

• Browse (All)
• Browse B
• Subjects

---

---

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