Ace Mining Tools Ltd. of Calgary makes specialty tools used in the mining industry. The company uses

Question:

Ace Mining Tools Ltd. of Calgary makes specialty tools used in the mining industry. The company uses an ABC system for internal decision making. The company has four activity cost pools, as listed below:

Activity Rate Activity Cost Pool Activity Measure Order size..... Customer orders. Product testing . $17.60 per direct l


The managing director of the company would like information concerning the cost of a recently completed order for hard-rock drills. The order required 100 direct labour-hours, 20 hours of product testing, and five sales calls.


Required:

Prepare a report showing the overhead cost of the order for hard rock drills according to the ABC system. What is the total overhead cost assigned to the order?

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Related Book For  book-img-for-question

Managerial Accounting

ISBN: 9781259275814

11th Canadian Edition

Authors: Ray H Garrison, Alan Webb, Theresa Libby

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