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

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

Open Show Work

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

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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