Excel Template 6_8B

Excel Template 6_8B - 6-8 Traditional Costing Unit Total OH...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: 6-8 Traditional Costing: Unit Total OH Batch + Product + Facility Total OH = + / Total = OH x Weight Cost Rate of Cost Driver Driver $- / = #DIV/0! x # Units OH Allocated = #DIV/0! / = #DIV/0! / OH/ Unit Direct Cost = ### + Total Cost Price = 120% Cost = #DIV/0! #DIV/0! ABC: OH Cost Cost Driver Allocation Rate Unit $/ Batch $/ = #DIV/0! x = #DIV/0! x Weight of Cost Driver OH Allocated #DIV/0! + #DIV/0! Product $- Facility $/ = #DIV/0! x x + $- + #DIV/0! = - = ### + $- = #DIV/0! #DIV/0! Undercosting #DIV/0! Rigsby Sporting Goods, Inc., produces indoor treadmills. The company allocates its overhead co and cost drivers associated with the four overhead activity cost pools follow: Producing 5,000 units of PFT200, one of the company's five products, took 4,000 labor hours, 25 product-sustaining activities. Required a. Had the company used labor hours as a companywide allocation base, how much overhead w PFT200? b. How much overhead is allocated to the 5,000 PFT200 units using activity-based costing? c. Compute the overhead cost per unit for PFT200 using activity-based costing and direct labor h product costs are $120 and PFT200 is priced at 20 percent above cost (rounded to the nearest w price under each allocation system. d. Assuming that activity-based costing provides a more accurate estimate of cost, indicate whet Rigsby uses direct labor hours as the allocation base. Explain how over- or undercosting can affe e. Comment on the validity of using the allocated facility-level costs in the pricing decision. Shoul pricing decision? If so, which ones? What costs would you include if you were trying to decide wh ...
View Full Document

{[ snackBarMessage ]}

Page1 / 2

Excel Template 6_8B - 6-8 Traditional Costing Unit Total OH...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online