The following annual budgeted information is available for Beavis Company, which manufactures picnic tables, lawn chairs, and
Question:
During the current month, the following cost drivers were used:
Required
Use a computer spreadsheet.
A. Calculate the overhead rate for each cost driver.
B. Determine the overhead applied to each product line.
Transcribed Image Text:
Activity Estimated Cost Cost Driver Setting up machines Processing orders Handing materials Using machines Managing quality Packing and shipping Using building Total cost $180,000 300,000 120,000 360,000 300,000 240,000 1,200,000 700,000 Number of production runs Number of orders Pounds of materials Number of machine hours Number of inspections Number of units shipped Square feet occupied Usage 225 450 18,000 30,000 90 45,000 450000 Tables Chairs Umbrellas Number of production runs Number of orders Pounds of materials Number of machine hours Number of inspections Number of units shipped Square feet occupied 16 16 800 1,000 16 400 600 600 600 80,000 600 250,000 120,000
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Cost Pool Cost Cost Driver Budgeted Usage Rate Setting up machines 180000 Production runs 225 80000 ...View the full answer
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Related Book For
Introduction to Accounting An Integrated Approach
ISBN: 978-0078136603
6th edition
Authors: Penne Ainsworth, Dan Deines
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