Question

# Ready Ride is a trucking company. It provides local, short-haul, and long-haul services. It has developed...

Ready Ride is a trucking company. It provides local, short-haul, and long-haul services. It has developed the following three cost pools.

 Activity Cost Pool Cost Drivers Estimated Overhead Estimated Use of Cost Driver per Activity Loading and unloading Number of pieces \$85,785 90,300 Travel Miles driven 468,000 585,000 Logistics Hours 65,520 3,120

Compute the activity-based overhead rates for each pool. (Round answers to 2 decimal places, e.g. 12.75.)

 Activity Cost Pool Activity-Based Overhead Rate Loading and unloading \$ per piece Travel \$ per mile Logistics \$ per hour

Determine the overhead allocated to Job XZ3275 which has 150 pieces, requires 200 miles of driving, and 0.75 hours of logistics. (Round answer to 2 decimal places, e.g. 12.75.)

 Overhead applied to job XZ3275 \$Type your answer here

#### Homework Answers

Answer #1

Answer: \$318.25

Calculations:

 Activity Cost Pool Estimated Overhead Estimated Use of Cost driver per activity = Activity Rate / Loading and unloading \$85,785 / 90300 Number of pieces = \$0.95 per piece Travel \$468,000 / 585000 Miles driven = \$0.80 per mile Logistics \$65,520 / 3120 Hours = \$21.00 per hour

.

 Cost driver x Activity Rate = Overhead allocated Loading and unloading 150 x \$0.95 = \$142.50 Travel 200 x \$0.80 = \$160.00 Logistics 0.75 x \$21.00 = \$15.75 Overhead applied to Job XZ3275 \$318.25
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