Wednesday, 24 August 2011

Under ABC, complete the schedule showing the computations of the activity-based overhead rates. Activity Cost Pool Cost Drive Estimated Overhead Ex...

Under ABC, complete the schedule showing the computations of the activity-based overhead rates.

Activity Cost Pool Cost Drive Estimated Overhead Expected Use Activity Based Overhead

Of Cost Drivers



Receiving Pounds $90,450 335,000

Forming Machine hours 206,500 35,000

Assembling Number of parts 390,600 217,000

Testing Number of tests 89,250 25,500

Painting Gallons 57,200 5,200

Packing and shipping Pounds 971,500 335,000



Required:

1. Activity Based Overhead

2. Complete the schedule assigning each activity's overhead cost pool to each product based on the use of cost drivers.

3. Compute the total cost per unit for each product under ABC.

4. Classify each of the activities as a value-added activity or a non-value-added activity

Receiving

Forming

Assembling

Testing

Painting

Packing and shipping

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