Durban Metal Products makes specialty metal parts and uses activity-based costing for internal decision-making purposes. The...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Durban Metal Products makes specialty metal parts and uses activity-based costing for internal decision-making purposes. The company has four activity cost pools as follows: Activity Cost Pool Activity Measure Number of direct labor-hours Number of customer orders Number of testing hours Order size Customer orders Product testing Selling Number of sales calls Activity Rate $ 17.80 per direct labor-hour $ 365.00 per customer order $ 72.00 per testing hour $ 1,491.00 per sales call The company's owner wants to know the cost of a customer order requiring 140 direct labor-hours, 17 hours of product testing, and 3 sales calls. Required: What is the total overhead cost assigned to this order? Activity Cost Pool ABC Cost Order size Customer orders Product testing Selling Total overhead cost Durban Metal Products makes specialty metal parts and uses activity-based costing for internal decision-making purposes. The company has four activity cost pools as follows: Activity Cost Pool Activity Measure Number of direct labor-hours Number of customer orders Number of testing hours Order size Customer orders Product testing Selling Number of sales calls Activity Rate $ 17.80 per direct labor-hour $ 365.00 per customer order $ 72.00 per testing hour $ 1,491.00 per sales call The company's owner wants to know the cost of a customer order requiring 140 direct labor-hours, 17 hours of product testing, and 3 sales calls. Required: What is the total overhead cost assigned to this order? Activity Cost Pool ABC Cost Order size Customer orders Product testing Selling Total overhead cost
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
For each polynomial function, find (a) (-1), (b) (2), and (c) (0). f(x) = x + 2x - 8
-
On November 31, the end of the current fiscal year, the following information is available to assist Caruso Company's accountants in making adjusting entries: a. Caruso Company's Supplies account...
-
Assume that security returns are normally distributed. Compare portfolios A and B, using both first- and second-order stochastic dominance: Case1 Cae Case 3
-
The return on shareholders equity ratio can be decomposed into three separate financial ratiosthe return on sales, asset turnover, and financial leverage. Define each of the ratios assuming the firm...
-
How does the task life cycle type affect our attempts to level the resource loads?
-
1. Describe criminal justice strategies the police use to support the community and justice-involved individuals in an institutional setting. 2. Explain how police community programs benefit society...
-
Explain the concept of consistency models. How do eventual consistency and strong consistency affect the design of distributed applications ?
-
What three amounts are used to calculate a plant asset's annual depreciation expense using the straight-line method of depreciation?
-
The Pet Center stocks many kinds of merchandise. The store has always taken a periodic inventory at the end of a fiscal year. The store has not kept a perpetual inventory because of the cost....
-
Which accounting concept is being applied when depreciation expense is recorded for plant assets?
-
What is the formula to calculate the gain or loss on the sale of a plant asset?
-
When an asset is disposed of after the beginning of the fiscal year, what entry may need to be recorded before an entry is made for the discarding of a plant asset?
-
Show that each of the following subsets is a subspace of the given vector spaces, or else provide a single counterexample to show that the subset is NOT a vector subspace. o 5 All polynomials in p...
-
Why should you not model a decision variable as a random variable with a probability distribution?
-
A job requires ten stages of work. The completion times for each are in the table below. Also listed in the table is the information of which stages cannot begin until other stages are complete,...
-
A large computer program is to be tested and debugged in modules, some of which require other modules to be completely tested before testing on them can proceed. The table below shows the...
-
Finish the proof of Theorem 2 by showing assertion 2: If \((u, v)\) is an omitted edge and \(S(u, v)=0\), then the spanning tree created by substituting \((u, v)\) for the edge \(\left(u_{0}, v...
Study smarter with the SolutionInn App