Question

3. Borleau Corporation has an activity-based costing system with three activity cost pools-- Supporting direct labor,...

3. Borleau Corporation has an activity-based costing system with three activity cost pools-- Supporting direct labor, Setting up machines, and General factory. The company makes two products: Basic Product and Deluxe Product. Annual production and sales are 1,700 units of Basic Product and 1,100 units of Deluxe Product. The estimated overhead costs and expected activity for next period are as follows: Activity Cost Pools and Activity measures Estimated Overhead Costs Expected Activity Basic Product Deluxe Product Supporting direct labor (DLHs) $30,528 1,000 600 Setting up machines (setups) $17,385 1,700 200 General factory (MHs) $50,872 510 660 Total $98,785

a. Calculate the activity rate for each activity cost pool using activity-based costing.

b. Determine the amount of overhead cost that would be assigned to each product using activity-based costing.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Answer to the above question is shown.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Groleau Corporation has an activity-based costing system with three activity cost pools--Processing, Setting Up, and Other....
Groleau Corporation has an activity-based costing system with three activity cost pools--Processing, Setting Up, and Other. The company's overhead costs, which consist of factory utilities and indirect labor, are allocated to the cost pools in proportion to the activity cost pools' consumption of resources. Costs in the Processing cost pool are assigned to products based on machine-hours (MHs) and costs in the Setting Up cost pool are assigned to products based on the number of batches. Costs in the Other...
Groleau Corporation has an activity-based costing system with three activity cost pools--Processing, Setting Up, and Other....
Groleau Corporation has an activity-based costing system with three activity cost pools--Processing, Setting Up, and Other. The company's overhead costs, which consist of factory utilities and indirect labor, are allocated to the cost pools in proportion to the activity cost pools' consumption of resources. Costs in the Processing cost pool are assigned to products based on machine-hours (MHs) and costs in the Setting Up cost pool are assigned to products based on the number of batches. Costs in the Other...
Howell Corporation's activity-based costing system has three activity cost pools--Machining, Setting Up, and Other. The company's...
Howell Corporation's activity-based costing system has three activity cost pools--Machining, Setting Up, and Other. The company's overhead costs, which consist of equipment depreciation and indirect labor, are allocated to the cost pools in proportion to the activity cost pools' consumption of resources. Equipment depreciation (total) $ 31,200 Indirect labor (total) $ 7,110 Distribution of Resource Consumption Across Activity Cost Pools Machining Setting Up Other Equipment depreciation 0.40 0.50 0.10 Indirect labor 0.40 0.20 0.40 Costs in the Machining cost pool...
Marquette Corporation has an activity-based costing system with three activity cost pools--Processing, Setting Up, and Other....
Marquette Corporation has an activity-based costing system with three activity cost pools--Processing, Setting Up, and Other. Costs in the Processing cost pool are assigned to products based on machine-hours (MHs) and costs in the Setting Up cost pool are assigned to products based on the number of batches. Costs in the Other cost pool are not assigned to products. Data concerning the two products and the company's costs and activity-based costing system appear below: Activity Cost Pools Costs Processing $111,600...
Howell Corporation's activity-based costing system has three activity cost pools--Machining, Setting Up, and Other. The company's...
Howell Corporation's activity-based costing system has three activity cost pools--Machining, Setting Up, and Other. The company's overhead costs, which consist of equipment depreciation and indirect labor, are allocated to the cost pools in proportion to the activity cost pools' consumption of resources. Equipment depreciation (total) $ 29,400 Indirect labor (total) $ 7,380 Distribution of Resource Consumption Across Activity Cost Pools Machining Setting Up Other Equipment depreciation 0.30 0.20 0.50 Indirect labor 0.50 0.30 0.20 Costs in the Machining cost pool...
Musich Corporation has an activity-based costing system with three activity cost pools--Machining, Setting Up, and Other....
Musich Corporation has an activity-based costing system with three activity cost pools--Machining, Setting Up, and Other. The company's overhead costs, which consist of equipment depreciation and indirect labor, have been allocated to the cost pools already and are provided in the table below. Activity Cost Pools Machining Setting Up Other Total Equipment depreciation $ 11,000 $ 52,700 $ 25,400 $ 89,100 Indirect labor 6,900 3,700 4,900 15,500 Total $ 17,900 $ 56,400 $ 30,300 $ 104,600 Costs in the Machining...
Vieth Corporation has an activity-based costing system with three activity cost pools-Processing, Setting Up, and Other....
Vieth Corporation has an activity-based costing system with three activity cost pools-Processing, Setting Up, and Other. The company's overhead costs, which consist of factory utilities and indirect labor, are allocated to the cost pools in proportion to the activity cost pools' consumption of resources. Costs in the Processing cost pool are assigned to products based on machine-hours (MHs) and costs in the Setting Up cost pool are assigned to products based on the number of batches. Costs in the Other...
Howell Corporation's activity-based costing system has three activity cost pools--Machining, Setting Up, and Other. The company's...
Howell Corporation's activity-based costing system has three activity cost pools--Machining, Setting Up, and Other. The company's overhead costs, which consist of equipment depreciation and indirect labor, are allocated to the cost pools in proportion to the activity cost pools' consumption of resources. Equipment depreciation (total) $ 29,400 Indirect labor (total) $ 7,380 Distribution of Resource Consumption Across Activity Cost Pools Machining Setting Up Other Equipment depreciation 0.30 0.20 0.50 Indirect labor 0.50 0.30 0.20 Costs in the Machining cost pool...
Howell Corporation's activity-based costing system has three activity cost pools--Machining, Setting Up, and Other. The company's...
Howell Corporation's activity-based costing system has three activity cost pools--Machining, Setting Up, and Other. The company's overhead costs, which consist of equipment depreciation and indirect labor, are allocated to the cost pools in proportion to the activity cost pools' consumption of resources. Equipment depreciation (total) $ 35,300 Indirect labor (total) $ 7,910 Distribution of Resource Consumption Across Activity Cost Pools Machining Setting Up Other Equipment depreciation 0.40 0.10 0.50 Indirect labor 0.40 0.40 0.20 Costs in the Machining cost pool...
Howell Corporation's activity-based costing system has three activity cost pools--Machining, Setting Up, and Other. The company's...
Howell Corporation's activity-based costing system has three activity cost pools--Machining, Setting Up, and Other. The company's overhead costs, which consist of equipment depreciation and indirect labor, are allocated to the cost pools in proportion to the activity cost pools' consumption of resources. Equipment depreciation (total) $ 27,800 Indirect labor (total) $ 7,210 Distribution of Resource Consumption Across Activity Cost Pools Machining Setting Up Other Equipment depreciation 0.40 0.20 0.40 Indirect labor 0.30 0.30 0.40 Costs in the Machining cost pool...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT