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8 Chapter 08 - 2008.4
Course: ACC 202, Winter 2008School: N. Central IL
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8-18 Exercise 1. First-stage allocations of overhead costs to the activity cost pools: Distribution of Resource Consumption Across Activity Cost Pools Direct Labor Order Customer Support Processing Support Other Wages and salaries ......... 30% 35% 25% 10% Other overhead costs ...... 25% 15% 20% 40% Direct Labor Order Customer Support Processing Support Wages and salaries ......... $105,000 $122,500 $ 87,500...
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8-18 Exercise 1. First-stage allocations of overhead costs to the activity cost pools:
Distribution of Resource Consumption Across Activity Cost Pools Direct Labor Order Customer Support Processing Support Other Wages and salaries ......... 30% 35% 25% 10% Other overhead costs ...... 25% 15% 20% 40% Direct Labor Order Customer Support Processing Support Wages and salaries ......... $105,000 $122,500 $ 87,500 Other overhead costs ...... 50,000 30,000 40,000 Total cost....................... $155,000 $152,500 $127,500
Example: of 30% $350,000 is $105,000. 2. Computation of activity rates:
Totals 100% 100%
Other Totals $ 35,000 $350,000 80,000 200,000 $115,000 $550,000
(a) (b) (a) (b) Activity Cost Pools Total Cost Total Activity Activity Rate Direct labor support ........ $155,000 10,000 DLHs $15.50 per DLH Order processing ............ $152,500 500 orders $305 per order Customer support ........... $127,500 100 customers $1,275 per customer
The McGraw-Hill Companies, Inc., 2008. All rights reserved. 6 Managerial Accounting, 12th Edition
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