Question

A company incurs $3360000 of overhead each year in three departments: Processing, Packaging, and Testing. The...

A company incurs $3360000 of overhead each year in three departments: Processing, Packaging, and Testing. The company performs 800 processing transactions, 200000 packaging transactions, and 2000 tests per year in producing 400000 drums of Oil and 600000 drums of Sludge. The following data are available:

Department Expected Use of Driver     Cost
Processing   800 $1380000
Packaging 200000    1380000
Testing 2000 600000


Production information for the two products is as follows:

            Oil                         Sludge            
Department Expected Use of Driver Expected Use of Driver
Processing 300 500
Packaging 120000     80000   
Testing 1600 400


The amount of overhead assigned to Oil using ABC is

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1
Activity rate
Activity    Overheads Driver Activity
rate
Processing 13,80,000 800 1725
Packaging 13,80,000 2,00,000 6.9
Testing 6,00,000 2,000 300
Oh allocated to OIL:
Activity Rate Driver used OH allocated
Processing 1725 300 517500
Packaging 6.9 120000 828000
Testing 300 1600 480000
Total Overheads allocated 1825500
Answer is $1825,500
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
A company incurs $3660000 of overhead each year in three departments: Processing, Packaging, and Testing. The...
A company incurs $3660000 of overhead each year in three departments: Processing, Packaging, and Testing. The company performs 800 processing transactions, 200000 packaging transactions, and 2000 tests per year in producing 400000 drums of Oil and 600000 drums of Sludge. The following data are available: Department Expected Use of Driver Cost Processing 800 $1530000 Packaging 200000 1530000 Testing 2000 600000 Production information for the two products is as follows: Oil Sludge Department Expected Use of Driver Expected Use of Driver...
A company incurs $1100000 of overhead each year in three departments, Processing, Packaging, and Testing. The...
A company incurs $1100000 of overhead each year in three departments, Processing, Packaging, and Testing. The company performs 800 processing transactions, 190000 packaging transactions, and 2000 tests per year in producing 390000 drums of oil and 590000 drums of sludge. The following data are available: Department Expected use of Driver Cost Processing 800 $490000 Packaging 190000 490000 Testing 2000 120000 Production information for sludge is as follows: Department Expected use of Driver Processing 600 Packaging 95000 Testing 400 Calculate the...
A company incurs $4218500 of overhead each year in three departments: Ordering and Receiving, Mixing, and...
A company incurs $4218500 of overhead each year in three departments: Ordering and Receiving, Mixing, and Testing. The company prepares 2000 purchase orders, works 50000 mixing hours, and performs 1500 tests per year in producing 200000 drums of Goo and 600000 drums of Slime. The following data are available: Department Estimated use of Driver Cost Ordering and Receiving 2000 $1380000 Mixing 50000 1475000 Testing 1500 1363500 Production information for Goo is as follows: Department Estimated use of Driver Ordering and...
Process Costing Journal Entries. Assume a company has two processing departments—Molding and Packaging. Transactions for the...
Process Costing Journal Entries. Assume a company has two processing departments—Molding and Packaging. Transactions for the month are shown as follows. 1. The Molding department requisitioned direct materials totaling $2,000 to be used in production. 2. Direct labor costs totaling $3,500 were incurred in the Molding department, to be paid the next month. 3. Manufacturing overhead costs applied to products in the Molding department totaled $2,500. 4. The cost of goods transferred from the Molding department to the Packaging department...
1. Foxx Company incurs $410000 overhead costs each year in its three main departments, setup ($35000),...
1. Foxx Company incurs $410000 overhead costs each year in its three main departments, setup ($35000), machining ($265000), and packing ($110000). The setup department performs 40 setups per year, the machining department works 5000 hours per year, and the packing department packs 500 orders per year. Information about Foxx’s two products is as follows: Product A1 Product B1 Number of setups      20     20 Machining hours   1000 4000 Orders packed    150    350 Number of products manufactured    600    400 If machining hours...
Swifty Co. incurs $533000 of overhead costs each year in its three main departments, setup ($45000),...
Swifty Co. incurs $533000 of overhead costs each year in its three main departments, setup ($45000), machining ($405000), and packing ($83000). The setup department performs 60 setups per year, the machining department works 8000 hours per year, and the packing department packs 200 orders per year. Information about Swifty’s 2 products is as follows: Product One Product Two Number of setups 10 50 Machining hours 2800 5200 Orders packed 120 80 Using ABC, how much overhead is assigned to Product...
Fickel Company has two manufacturing departments—Assembly and Testing & Packaging. The predetermined overhead rates in Assembly...
Fickel Company has two manufacturing departments—Assembly and Testing & Packaging. The predetermined overhead rates in Assembly and Testing & Packaging are $25.00 per direct labor-hour and $21.00 per direct labor-hour, respectively. The company’s direct labor wage rate is $27.00 per hour. The following information pertains to Job N-60: Assembly Testing & Packaging Direct materials $ 405 $ 51 Direct labor $ 297 $ 54 Required: 1. What is the total manufacturing cost assigned to Job N-60? (Do not round intermediate...
Fickel Company has two manufacturing departments—Assembly and Testing & Packaging. The predetermined overhead rates in Assembly...
Fickel Company has two manufacturing departments—Assembly and Testing & Packaging. The predetermined overhead rates in Assembly and Testing & Packaging are $26.00 per direct labor-hour and $22.00 per direct labor-hour, respectively. The company’s direct labor wage rate is $28.00 per hour. The following information pertains to Job N-60: Assembly Testing & Packaging Direct materials $ 410 $ 53 Direct labor $ 322 $ 70 Required: 1. What is the total manufacturing cost assigned to Job N-60? (Do not round intermediate...
Fickel Company has two manufacturing departments—Assembly and Testing & Packaging. The predetermined overhead rates in Assembly...
Fickel Company has two manufacturing departments—Assembly and Testing & Packaging. The predetermined overhead rates in Assembly and Testing & Packaging are $14.00 per direct labor-hour and $10.00 per direct labor-hour, respectively. The company’s direct labor wage rate is $17.00 per hour. The following information pertains to Job N-60: Assembly Testing & Packaging Direct materials $ 355 $ 31 Direct labor $ 102 $ 34 Required: 1. What is the total manufacturing cost assigned to Job N-60? (Do not round intermediate...
Fickel Company has two manufacturing departments—Assembly and Testing & Packaging. The predetermined overhead rates in Assembly...
Fickel Company has two manufacturing departments—Assembly and Testing & Packaging. The predetermined overhead rates in Assembly and Testing & Packaging are $32.00 per direct labor-hour and $28.00 per direct labor-hour, respectively. The company’s direct labor wage rate is $34.00 per hour. The following information pertains to Job N-60: Assembly Testing & Packaging Direct materials $ 440 $ 65 Direct labor $ 493 $ 187 Required: 1. What is the total manufacturing cost assigned to Job N-60? (Do not round intermediate...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT