Fellar Corp. has identified the following information: Activity cost pools Materials handling $53,100 Machine maintenance 21,000 Cost
Question:
Fellar Corp. has identified the following information:
Activity cost pools | |
Materials handling | $53,100 |
Machine maintenance | 21,000 |
Cost drivers | |
Number of material moves | 900 |
Number of machine hours | 84,000 |
Required:
1. Calculate the activity rate for each cost pool.
2. Determine the amount of overhead assigned to Fellar’s products if they have the following activity demands:
Product A | Product B | ||
Number of material moves | 540 | 360 | |
Number of machine hours | 42,200 | 41,800 | |
Calculate the activity rate for each cost pool.
|
Determine the amount of overhead assigned to Fellar’s products if they have the following activity demands: (Round your intermediate calculations to 2 decimal places and final answers to the nearest whole dollar amount.)
Product A | Product B | ||
Number of material moves | 600 | 360 | |
Number of machine hours | 42,000 | 33,000 | |
|
Using activity proportions, determine the amount of overhead assigned to Fellar’s products. (Round your intermediate percentages to the nearest whole percent. Round final answers to the nearest whole dollar amount.)
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Fundamentals of Taxation 2015
ISBN: 9781259293092
8th edition
Authors: Ana Cruz, Michael Deschamps, Frederick Niswander, Debra Prendergast, Dan Schisler, Jinhee Trone