Activit3 - based costing Note that some of the overhead...

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ACTIVITY-BASED COSTING EXAMPLE Under  activity-based costing,  Check and Doublecheck distributes its estimated annual overhead costs  of $1,200,000 to several activity cost pools. The firm computes activity-based overhead rates per cost  driver by dividing each activity overhead cost pool by the expected number of cost drivers used per  activity. Illustration  17-16  shows an annual overhead budget using an ABC system.  Condensed annual budget of a service firm under activity-
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Unformatted text preview: based costing Note that some of the overhead costs can be directly assigned (see telephone and postage). The assignment of the individual overhead activity rates to the actual number of activities used in the performance of the Plano Molding audit results in total overhead assigned of $165,100 as shown in Illustration 17-17 . Illustration 17-17 Assigning overhead in a service company...
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This note was uploaded on 11/08/2011 for the course ACCOUNTING ac 202 taught by Professor - during the Fall '11 term at Montgomery.

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Activit3 - based costing Note that some of the overhead...

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