Question
$3.00 Business Accounting
- From Business: Accounting
- Closed, but you can still post tutorials
- Due on Oct. 14, 2011
- Asked on Oct 11, 2011 at 5:44:10PM
Q:
Bass Corporation manufactures two products: A and B. The total indirect manufacturing overhead resource costs of $91,700 have been assigned to four activity cost pools that use the following cost drivers:
|
Product |
Number of Setups |
Machine Runs |
Packing Hours |
Orders |
|
Product A |
40 |
70 |
2,000 |
150 |
|
Product B |
20 |
140 |
3,000 |
250 |
|
|
|
|
|
|
|
Cost per Pool |
$7,500 |
$4,200 |
$60,000 |
$20,000 |
Required:
a. Compute the unit activity costs for each of the cost drivers listed.
b. Assign the overhead costs to products A and B using activity-based costing.
c. What is the total overhead cost for Product A and Product B?
ACTIVITY BASED COSTING
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- Posted on Oct 12, 2011 at 12:44:48PM
Posted by :
pavan101
Rating (189):A-
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Rating (189):A-
Questions Asked: 10
Tutorials Posted: 1773,
Blog Posts: 2,
Earned: $5,654.94
A:
Preview: ... 60, COSTS $7500,
SO, COST PER SET UP=7500/60=$ 125 .(ANSWER)
2. MACHINE RUNS TOTAL=70+1400 = 210, COSTS $4200,
SO, COST PER RUN = 4200/210 =$ 20 .(ANSWER).
3. PACKING HRS TOTAL=2000+3000=50 ...
The full tutorial is about 151 words long .