2 Durban Metal Products, Ltd, of the Republic of South Africa makes edges of bul
ID: 2568960 • Letter: 2
Question
2 Durban Metal Products, Ltd, of the Republic of South Africa makes edges of bulldozer blades to replacement parts for Land Rove decision-making purposes. The company has four activity cost pools as listed below rica makes specialty metal parts used in applications ranging from the cuting rs. The company uses an activity-based costing system for internal Activity Rate $16.48 per direct 1 Product testing Selling Number of customer orders Number of testing hours 354.e0 per customer order s 79.e0 per testing hour s 1,484.80 per sales call The managing director of the company would like information concerning the cost of a recently completed order for heavy-duty trailer axles. The order required 190 direct labor-hours, 16 hours of product testing, and 4 sales calls Print Required: what is the total overhead cost assigned to the order for heavy-duty trailer axles? Order size Reference linksExplanation / Answer
Calculation of total overhead cost
Activity cost pool
Activity measures
Activity rate
No of hours/orders
ABC Costing
Order size
No of direct labour hours
16.4
190
$3,116
Customer order size
Customer order
354
1
$354
Product testing
Testing hours
79
16
$1,264
Selling
Selling cell
1484
4
$5,936
Total overhead cost
$10,670
Ans
Total overhead cost
10,670
Calculation of total overhead cost
Activity cost pool
Activity measures
Activity rate
No of hours/orders
ABC Costing
Order size
No of direct labour hours
16.4
190
$3,116
Customer order size
Customer order
354
1
$354
Product testing
Testing hours
79
16
$1,264
Selling
Selling cell
1484
4
$5,936
Total overhead cost
$10,670
Ans
Total overhead cost
10,670
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.