FINC 577 Chapter 4 Notes Outline

Facilityfacility level activities required to support

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Unformatted text preview: sustain an entire production process. Chapter 4-26 Hierarchy Hierarchy of Activity Levels Chapter 4-27 Example Example 1 Coats Galore, Inc. uses activity-based costing as activitythe basis for information to set prices for its six lines of seasonal coats. Compute the activityactivityth based overhead rates using the following budgeted data data for each of the activity cost pools. Activity Cost Pools Estimated Overhead Designing $ Expected Use of Cost Drivers per Activity 450,000 12,000 designer hours Sizing and cutting 4,000,000 160,000 machine hours Stitching and trimming 1,440,000 Wrapping and Packing Chapter 4-28 336,000 80,000 labor hours 32,000 finished units Example Example 1 Chapter 4-29 Example Example 2 Koppa Inc. manufactures two products: car wheels and truck wheels. To determine the amount of overhead to assign to each product line, the controller, Robert Kruegel, has developed the Kruegel, following information. Car Estimated wheels produced Direct labor hours per wheel Truck 40,000 10,000 1 3...
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This document was uploaded on 01/19/2014.

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