# Cost 4 - RS Company manufactures and distributes two...

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RS Company manufactures and distributes two products, R and S. Overhead costs are currently allocated using the number of units produced as the allocation base. The controller has recommended changing to an activity-based costing (ABC) system. She has collected the following information: Activity Cost Driver Amount Production setups Number of setups \$82,000 Material handling Number of parts 48,000 Packaging costs Number of units 130,000 80,000 \$260,000 What is the total overhead allocated to Product R using the current system? Answer Selected Answer: \$146,400 Correct Answer: \$160,000 Response Feedback: \$260,000/130,000 = \$2.00 per unit; \$2(80,000 Question 2 0 out of 0 points What is the total overhead per unit allocated to Product R using activity- based costing (ABC)? Answer Selected Answer: \$1.83 Correct Answer: \$1.83 Response Feedback: (\$82,000/20)8 + (\$48,000/80)56 + (\$130,000/130,000)80,000 = \$146,400; \$146,400/80,000 = \$1.83 Question 3 0 out of 0 points

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What is the total overhead allocated to Product S using the current system? Answer Selected Answer: \$113,600 Correct Answer: \$100,000 Response Feedback: Question 4 0 out of 0 points
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