Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

8. Dangerfield Enterprises produces three kinds of golf clubs: Fancy, Light, and

ID: 2542423 • Letter: 8

Question

8. Dangerfield Enterprises produces three kinds of golf clubs: Fancy, Light, and Disco. These unique clubs incur overhead costs during production. The manager at Dangerfield Enterprises examined the overhead costs and determined the cost drivers for each cost object.

ABC level

Overhead cost

Cost driver

Fancy

Light

Disco

Unit

$400,000

Number of units

2,300

2,500

3,200

Batch

$600,000

Number of set-ups

30

50

70

Product

$400,000

Percent of usage

30%

25%

45%

Facility

$800,000

Square feet

120,000

160,000

220,000

Using activity based costing, fill in the amount of overhead that is allocated to each product:

Fancy

Light

Disco

Unit Level:

Batch Level:

Product Level:

Facility Level:

Show work here please !!!!

ABC level

Overhead cost

Cost driver

Fancy

Light

Disco

Unit

$400,000

Number of units

2,300

2,500

3,200

Batch

$600,000

Number of set-ups

30

50

70

Product

$400,000

Percent of usage

30%

25%

45%

Facility

$800,000

Square feet

120,000

160,000

220,000

Explanation / Answer

Calculation of amount of overhead located: Fancy Light Disco Unit level 115000 125000 160000 (400000*0.2875, 400000*0.3125, 400000*0.40) Batch Level 120000 200000 280000 (600000*0.20, 600000*50/150, 600000*70/150) Product Level 120000 100000 180000 (400000*0.30, 400000*0.25, 400000*0.45) Facility level 192000 256000 352000 (800000*0.24, 800000*0.32, 800000*0.44) Working: Unit Level: Total units= 2300+2500+3200= 8000 Fancy= 2300/8000= 0.2875 Light= 2500/8000=0.3125 Disco= 3200/8000= 0.40 Batch Level: Total set up= 30+50+70= 150 Fancy= 30/150= 0.20 Light= 50/150 Disco= 70/150 Facility Level: Total squarefeet= 120000+160000+220000= 500000 Fancy= 120000/500000= 0.24 Light= 160000/500000= 0.32 Disco=220000/500000=0.44

Hire Me For All Your Tutoring Needs
Integrity-first tutoring: clear explanations, guidance, and feedback.
Drop an Email at
drjack9650@gmail.com
Chat Now And Get Quote