Problem P4-3A_Stellar_Stairs

Problem P4-3A_Stellar_Stairs - Activity-Based Activity Cost...

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a Predetermined Overhead Rate = $830,000 / 100,000 machine hours Predetermined Overhead Rate = $8.30 per machine hours b Unit Cost per Unit (Traditional Costing) Direct Materials $103,600 Direct Labor $112,000 Manufacturing Overhead $120,350 Total Cost of 280 chairs $335,950 Unit Cost $1,200 c Activity-Based Overhead Rate Estimated Expected Use of Cost Activity-Based Activity Cost Pools Overhead Drivers per Activity Overhead Rate Purchasing $57,000 600 Orders $95.00 per Orders Handing Materials $82,000 8,000 Moves $10.25 per Moves Production $210,000 100,000 DL Hours $2.10 per DL Hours Setting Up Machine $85,000 1,250 Setups $68.00 per Setups Inspecting $90,000 6,000 Inspections $15.00 per Inspections Inventory Control $126,000 168,000 Components $0.75 per Components Utilities $180,000 90,000 Sq. Ft. $2.00 per Sq. Ft. Total $830,000 Cost Assignment Expected Use of Cost
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Unformatted text preview: Activity-Based Activity Cost Pools Drivers per Activity Overhead Rate Cost Aasigned Purchasing 60 Orders $95.00 per Orders $5,700 Handing Materials 800 Moves $10.25 per Moves $8,200 Production 5,000 DL Hours $2.10 per DL Hours $10,500 Setting Up Machine 100 Setups $68.00 per Setups $6,800 Inspecting 450 Inspections $15.00 per Inspections $6,750 Inventory Control 16,000 Component $0.75 per Components $12,000 Utilities 8,000 Sq. Ft. $2.00 per Sq. Ft. $16,000 Total Ovehead Assigned $65,950 Unit Cost per Unit (Activity Based Costing) Direct Materials $103,600 Direct Labor $112,000 Manufacturing Overhead $65,950 Total Cost of 280 chairs $281,550 Unit Cost $1,005.54 d Activity based costing is the preferred costing system because it reflects the real cost more accurate ly....
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Problem P4-3A_Stellar_Stairs - Activity-Based Activity Cost...

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