E5-22_Sol - $340.00/setup = 340 Insertion of parts 150...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
(15-20 min.) E 5-22 Req. 1 Northstar Computation of Indirect Cost Allocation Rates Activity Total Estimated Cost Estimated Quantity of Cost Allocation Base Activity Cost Allocation Rate Materials handling $12,000 ÷ 3,000 parts = $ 4.00 per part Machine setups $ 3,400 ÷ 10 setups = $340.00 per setup Insertion of parts $48,000 ÷ 3,000 parts = $ 16.00 per part Finishing $80,000 ÷ 2,000 hours = $ 40.00 per hour Req. 2 The amount of manufacturing overhead to be assigned to Job 420 is computed as follows Northstar- Job 420 Manufacturing overhead allocation Activity Actual Quantity of Cost Allocation Base Used per Wheel Cost Allocation Rate Cost per Wheel Materials handling 150 parts × $4.00/part = $ 600 Machine setups 1 setups
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: $340.00/setup = 340 Insertion of parts 150 parts $16.00/part = 2400 Finishing 120 hours $ 40.00/hr = 4800 Total manufacturing overhead $8,140 Req. 3 The amount of manufacturing overhead to be assigned to Job 510 is computed as follows Northstar- Job 510 Manufacturing overhead allocation Activity Actual Quantity of Cost Allocation Base Used per Wheel Cost Allocation Rate Cost per Wheel Materials handling 425 parts $4.00/part = $ 1700 Machine setups 2 setups $340.00/setup = 680 Insertion of parts 425 parts $16.00/part = 6800 Finishing 320 hours $ 40.00/hr = 12,800 Total manufacturing overhead $21,980...
View Full Document

This note was uploaded on 09/10/2011 for the course ACCT 101 taught by Professor Kang during the Spring '08 term at S.F. State.

Ask a homework question - tutors are online