Fenya Industries produces two surge protectors: K2761 with six outlets and D3354 with eight outlets and two
Question:
Expected activity for each product follows.
Required
a. Compute the overhead rate for each activity pool.
b. Determine the overhead cost allocated to eachproduct.
Transcribed Image Text:
Activity Pools Cost Pool Total Cost Driver Machine setup Machine operation Quality control Packaging Total overhead cost $144,000 360,000 57,600 38,400 $600,000 Number of setups Number of machine hours Number of inspections Number of units Number of Setups 48 72 120 Number of Machine Hours K2761 D3354 Total 1,400 2,600 4,000 Number of Inspections 78 172 250 Number of Units 25,000 15.000 40.000
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a Activity Pool Cost Cost Driver Allocation Rate Machine setup 144000 120 1...View the full answer
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Related Book For
Fundamental Managerial Accounting Concepts
ISBN: 978-0078025655
7th edition
Authors: Thomas Edmonds, Christopher Edmonds, Bor Yi Tsay, Philip Old
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