This Question: 6 pts 19 of 28 (°complete) This Test: 100 pts possible Nala Compa

Question

This Question: 6 pts 19 of 28 (°complete) This Test: 100 pts possible Nala Company has analyzed its production process and identified two primary activites These activities, their alocation bases, and their esimated costs are listed below ack on the icon to view the estimated oosts data) The company manutactures two products Reguiar and Super The products use the following resources in March cickonte icon to view the actuai data for March) Rend the auremonts Requirement 5. Compute the predetermined overhead alocation rates using activity-based costing Begin by selecting the formule to cniculate the predetermined overhend (OH) allocation rate. Then enter the amounts to compute the alocation rate or each acivity, (Round your answers to the nearest cent Predetermined alocation rate Puechssing Material handing Requiremonts & and 7. Determine the amount of overhead allocated to Regular products and Super products in March s overhead costs Compute the amount of overhead alocated to Reguiar, then compule the amount of averhead slocated to Super Choose from any list or enter any number in the input fields and then contnue to the next question

Explanation / Answer

Answer =1 Activity Cost Driver   Activity Cost / Cost River = Predetermined OH Allocation rate Purchasing = Number of Purhcase Orders Estimated Cost / Estimated Activity = = $ 14,500 / 250 Purchase Orders =                                  58.0 Per Orders   Material Handling Number of Parts = Estimated Cost / Estimated Activity = = $ 7840 / 16000 Parts = $                              0.49 Per Parts   Answer =2 Calculation of the overhead allocation of regular products Overhead Activity Formula Number of Purchase Orders X Predetermined Overdead Rate = Allocated Mfg. Overhead Cost Purchasing Cost = 13 Purchase Orders X $ 58 Per Orders = $                         754.00 Material Handling = Number of Parts X Handling cost per Parts = 600 Parts X 0.49 = $                         294.00 Calculation of the overhead allocation of Supar products Overhead Activity Formula Number of Purchase Orders X Predetermined Overdead Rate = Allocated Mfg. Overhead Cost Purchasing Cost = 15 Purchase Orders X $ 58 Per Purcahse Orders = $                         870.00 Material Handling = Number of Parts X Handling cost per Parts = 1100 Parts X 0.49 = $                         539.00

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