Sonoma Manufacturing has five activity cost pools and two products (a T-Vacuum and a D-Vacuum). Information...
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Sonoma Manufacturing has five activity cost pools and two products (a T-Vacuum and a D-Vacuum). Information related to the activity is presented below: Activity Cost Pool Ordering and Receiving Machine Setup Machining Assembly Inspection Cost Driver Orders Setups Machine hours Parts Inspections Selling price Direct material per unit Direct labor per unit Estimated Overhead $ 150,000 I- Vacuum $40 $6 $10 277,000 1,000,000 1,500,000 350,000 D- Vacuum Cost Drivers by Product D-Vacuum $45 $8 $10 T-Vacuum 700 Sonoma Produce 200,000 units of T-Vacuum and 500,000 units of D-Vacuum. The following is additional information related to each product: Cost 600 200,000 1,500,000 650 500 400 150,000 750,000 550 Required: 1. Calculate the overhead rate by using Activity Base Costing (ABC method) 2. Using the ABC rate, calculate the total cost per each unit for each product (Round your answ to the nearest cent) Sonoma Manufacturing has five activity cost pools and two products (a T-Vacuum and a D-Vacuum). Information related to the activity is presented below: Activity Cost Pool Ordering and Receiving Machine Setup Machining Assembly Inspection Cost Driver Orders Setups Machine hours Parts Inspections Selling price Direct material per unit Direct labor per unit Estimated Overhead $ 150,000 I- Vacuum $40 $6 $10 277,000 1,000,000 1,500,000 350,000 D- Vacuum Cost Drivers by Product D-Vacuum $45 $8 $10 T-Vacuum 700 Sonoma Produce 200,000 units of T-Vacuum and 500,000 units of D-Vacuum. The following is additional information related to each product: Cost 600 200,000 1,500,000 650 500 400 150,000 750,000 550 Required: 1. Calculate the overhead rate by using Activity Base Costing (ABC method) 2. Using the ABC rate, calculate the total cost per each unit for each product (Round your answ to the nearest cent)
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1 Calculate the overhead rate for each activity cost pool using the ABC method Ordering and Receivin... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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