managerial accounting

Project Description:

american fabrics has budgeted overhead costs of $910,800. it has allocated overhead on a plantwide basis to its two products (wool and cotton) using direct labor hours which are estimated to be 455,400 for the current year. the company has decided to experiment with activity-based costing and has created two activity cost pools and related activity cost drivers. these two cost pools are: cutting (cost driver is machine hours) and design (cost driver is number of setups). overhead allocated to the cutting cost pool is $303,600 and $607,200 is allocated to the design cost pool. additional information related to these pools is as follows.

wool cotton total
machine hours 101,200 101,200 202,400
number of setups 1,012 506 1,518

a. determine the amount of overhead allocated to the wool product line and the cotton product line using activity-based costing.

wool product line $
cotton product line $





b. what is the total cost allocated using the traditional approach, assuming direct labor hours were incurred evenly between the cutting and design activities?

wool product line $
cotton product line $
Skills Required:
Project Stats:

Price Type: Negotiable

Completed
Total Proposals: 14
1 Current viewersl
55 Total views
Project posted by:

Proposals

Proposals Reputation Price offered
  • 4.8
    232 Jobs 193 Reviews
    $0 in 0 Day
  • 4.2
    37 Jobs 24 Reviews
    $35 in 0 Day
  • 4.6
    113 Jobs 80 Reviews
    $20 in 0 Day
  • 4.8
    405 Jobs 247 Reviews
    $0 in 0 Day
  • 4.9
    73 Jobs 54 Reviews
    $0 in 0 Day
  • 4.5
    50 Jobs 37 Reviews
    $0 in 0 Day
  • 4.9
    69 Jobs 54 Reviews
    $0 in 0 Day
  • 4.4
    86 Jobs 65 Reviews
    $0 in 0 Day
  • 0.0
    1 Jobs 0 Reviews
    $5 in 0 Day
  • 4.9
    287 Jobs 248 Reviews
    $0 in 0 Day