Design changes assigned all costs of resources

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Design Changes - assigned all costs of resources consumed by customer requested design changes. Order Size - assigned all costs of resources consumed as a consequence of the number of units produced. Customer Relations – assigned all costs associated with maintaining relations with customers. Other – assigned all organization-sustaining costs and unused capacity costs   Define Activities, Activity Cost     Pools, and Activity Measures
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7-12 Production Department Indirect factory wages 6,000,000 $ Factory equipment depreciation 3,500,000 Factory utilities 2,500,000 Factory building lease 2,000,000 14,000,000 $ General Administrative Department Administrative wages and salaries 4,000,000 Office equipment depreciation 900,000 Administrative building lease 1,100,000 6,000,000 Marketing Department Marketing wages and salaries 1,500,000 Selling expenses 500,000 2,000,000 Total overhead costs 22,000,000 $ Overhead Costs at Baxter Battery (Manufacturing and Nonmanufacturing)   Assign Overhead Costs to     Activity Cost Pools
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7-13 Customer Orders Design Changes Order Size Customer Relations Other Total Production Department Indirect factory wages 30% 30% 20% 10% 10% 100% Factory equipment depreciation 20% 10% 60% 0% 10% 100% Factory utilities 0% 10% 60% 0% 30% 100% Factory building lease 0% 0% 0% 0% 100% 100% General Administrative Department Administrative wages and salaries 30% 10% 10% 30% 20% 100% Office equipment depreciation 30% 10% 0% 20% 40% 100% Administrative building lease 0% 0% 0% 0% 100% 100% Marketing Department Marketing wages and salaries 30% 10% 0% 50% 10% 100% Selling expenses 20% 0% 0% 70% 10% 100% Activity Cost Pools At Baxter Battery the following distribution of resource  consumption across activity cost pools is determined.   Assign Overhead Costs to     Activity Cost Pools
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7-14   Assign Overhead Costs to     Activity Cost Pools Customer Orders Design changes Order Size Customer Relations Other Total Production Department Indirect factory wages 1,800,000 $ Factory equipment depreciation Factory utilities Factory building lease General Administrative Department Administrative wages and salaries Office equipment depreciation Administrative building lease Marketing Department Marketing wages and salaries Selling expenses Total Activity Cost Pools Production Department Indirect factory wages 6,000,000 $ Factory equipment depreciation 3,500,000 Factory utilities 2,500,000 Factory building lease 2,000,000 14,000,000 $ General Administrative Department Administrative wages and salaries 4,000,000 Office equipment depreciation 900,000 Administrative building lease 1,100,000 6,000,000 Marketing Department Marketing wages and salaries 1,500,000 Selling expenses 500,000 2,000,000 Total overhead costs 22,000,000 $ Overhead Costs at Baxter Battery (Manufacturing and Nonmanufacturing) Indirect factory wages $6,000,000 Percent consumed by customer orders 30% $1,800,000
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7-15   Assign Overhead Costs to     Activity Cost Pools Customer Orders Design changes Order Size Customer Relations Other Total Production Department Indirect factory wages 1,800,000 $ Factory equipment depreciation 700,000 Factory utilities Factory building lease General Administrative Department Administrative wages and salaries Office equipment depreciation
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