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ID: 343279 • Letter: I

Question

instructions help Question 3 (of 9) E) | Save & Exit ]|Submit) Time remaining: 0:43:05 value 10.00 points Durban Metal Products, Ltd, of the Republic of South Africa makes specialty metal parts used in applications ranging from the cutting edges of bulldozer blades to replacement parts for Land Rovers. The company uses an activity-based internal decision-making purposes. The company has four activity cost pools as listed below costing system for Activity Cost Pool Order size Customer orders Product testing Selling Activity Measure Activity Rate per direct labor-hour Number of direct labor-hours Number of customer orders Number of testing hours Number of sales calls 17.10 363.00 per customer order 1,483.00 per sales call 76.00 per testing hour 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 Required: Prepare a report summarizing the overhead costs assigned to the order for heavy-duty trailer axles. What is the total overhead cost assigned to the order? tivity Cost Pool Order size Customer orders Product testing Selling Total overhead cost ABC Cost

Explanation / Answer

Activity Cost Pool Activity Rate Activity Requirement ABC Cost Order Size                              17.10                            190.00                        3,249.00 Customer Order                            363.00                                1.00                            363.00 Product Testing                              76.00                              16.00                        1,216.00 Selling                        1,483.00                                4.00                        5,932.00 Total Overhead Cost                      10,760.00