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Question

$3.00 Business Accounting

  • From Business: Accounting
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  • Due on Oct. 14, 2011
  • Asked on Oct 11, 2011 at 5:44:10PM
Asked by :
Picasso412
Picasso412
Rating :No Rating
Questions Asked: 22
Tutorials Posted: 0
 
 
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?

 

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ACTIVITY BASED COSTING
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  • Posted on Oct 12, 2011 at 12:44:48PM
Posted by :
pavan101
pavan101
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Questions Asked: 10
Tutorials Posted: 1773,
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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 ...

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