Ch 7 ABC Practice Problem with Solution

Ch 7 ABC Practice Problem with Solution -...

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RC Corp. has supplied the following data from its activity-based costing system: Distribution of Resource Consumption Across Activities: Annual Overhead Costs: Other Total Wages and Salaries  $300,000  Wages and Salaries 40% 30% 20% 10% 100% Other overhead costs  $100,000  Other Overhead Costs 30% 10% 20% 40% 100%     Total overhead costs  $400,000  Activity Cost Pool Activity Measure Data concerning the Smith Enterprises Order Volume Realated # of Direct Labor - Hours 20,000 DLH's Units Ordered 10 Units Order Related # of Customer Orders 400 Orders Direct Labor - Hours 2DLH's per unit Customer Support # of Customers 200 Customers Selling Price $300 per unit Other N/A Direct Materials $180 per unit Direct Labor $50 per unit Required: 1.  Prepare a report showing the first-stage allocations of overhead costs to the activity costs to the activity cost pools. 2.  Compute the activity rates for the activity cost pools.
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Ch 7 ABC Practice Problem with Solution -...

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