A company incurs $4451000 of overhead each year across three departments: Ordering and Receiving, Mixing, and...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
A company incurs $4451000 of overhead each year across three departments: Ordering and Receiving, Mixing, and Testing. The company prepares 2000 purchase orders, works 50000 mixing hours, and performs 1500 tests per year in producing 200000 drums of product Goo and 600000 drums of product Slime. The following data are available: Activity Cost Pools Ordering and Receiving Mixing Testing Estimated use of Driver Activity Cost Pools Ordering and Receiving Mixing Testing 2000 50000 1500 Production information product Goo is as follows: Estimated use of Driver 400 20000 500 Cost $1020000 1225000 1338000 If ABC is used, what amount of overhead will be assigned to Goo? A company incurs $4451000 of overhead each year across three departments: Ordering and Receiving, Mixing, and Testing. The company prepares 2000 purchase orders, works 50000 mixing hours, and performs 1500 tests per year in producing 200000 drums of product Goo and 600000 drums of product Slime. The following data are available: Activity Cost Pools Ordering and Receiving Mixing Testing Estimated use of Driver Activity Cost Pools Ordering and Receiving Mixing Testing 2000 50000 1500 Production information product Goo is as follows: Estimated use of Driver 400 20000 500 Cost $1020000 1225000 1338000 If ABC is used, what amount of overhead will be assigned to Goo?
Expert Answer:
Answer rating: 100% (QA)
First lets calculate the overhead allocation rate for each activity For Ordering and Receiving Overh... View the full answer
Related Book For
Management Accounting Information for Decision-Making and Strategy Execution
ISBN: 978-0137024971
6th Edition
Authors: Anthony A. Atkinson, Robert S. Kaplan, Ella Mae Matsumura, S. Mark Young
Posted Date:
Students also viewed these accounting questions
-
A company incurs $3,600,000 of overhead each year in three departments: Processing, Packaging, and Testing. The company performs 800 processing transactions, 200,000 packaging transactions, and 2,000...
-
The managing partners of the law firms Spencer, Spinelli, and Howe (SSH) and Gilbert and Lenz (GL) are discussing a possible merger. The two firms specialize in different areas of law, but focus on...
-
In a status report, executives want to know not only where we are today, but also where we will end up. Calculating where we will end up financially is not as easy as it sounds. Selecting the wrong...
-
Considering these data where 'P1' estimates are analyst forecasts of future stock prices: Stock PO P1 A B C D B 52.5 59 0.4 1.1 24.5 29 0.26 2.1 36.4 43 0.23 1.5 38 42 0.33 1.4 Market Risk Premium...
-
(a)A deuteron, 2/1H1 is the nucleus of a hydrogen isotope and consists of one proton and one neutron. The plasma of deuterons in a nuclear fusion reactor must be heated to about 300 million K. What...
-
In your own words describe the following heat treatment procedures for steels and, for each, the intended final microstructure: full annealing, normalizing, quenching, and tempering.
-
Following is a sample of five matched pairs. Let 1 and 2 represent the population means and let d = 1 2. A test will be made of the hypotheses H0: d = 0 versus H1: d > 0. a. Compute the differences....
-
1. How would you characterize the main economic, legal-political, and sociocultural difference influencing the relationship between the partners in Shui Fabrics? What GLOBE Project dimensions would...
-
Describe the improvement and what difference it will make to the change process. (5) (ii) Analyse the improvement against EACH stage of the Kubler-Ross Curve to show how the proposed improvement...
-
The steel plane truss shown in the figure is loaded by three forces P, each of which is 490 kN. The truss members each have a cross-sectional area of 3900 mm2 and are connected by pins each with a...
-
Case Questions Critical Legal Thinking What is a recording statute Ethics Was it ethical for Centex to argue that its unrecorded mortgage should take priority over Fifth Thirds prior recorded...
-
List the different ways in which rating agencies measure the creditworthiness of a bond.
-
What is default risk? Is it different from default risk premium?
-
What do you understand by the term world real interest rate? How is it determined?
-
What are the purposes of the international capital market?
-
The Pandora Papers and the Paradise Papers, two sets of leaked documents that exposed offshore investments in shell companies for tax avoidance by political and business leaders from across the...
-
If sales mixin peso is 60% for A and 40% to B, what is the total peso sales needed to earn a profit of P 60,000 permonth? Selling Price per unit Variable cost per unit A P 18 P9 B P 24 P6
-
TRUE-FALSE QUESTIONS 1. In terms of preliminary analytical procedures, assume that the company has introduced a new product with a low price point and significant customer demand. The auditor would...
-
A major car manufacturer developed the following information as part of its target costing efforts: Required(a) Prepare an exhibit similar to Exhibit 8-9 showing percentage contributions of each...
-
For each of the following two jobs manufacturing two different products, determine the missing amounts for items (a) through(h): J 321 ITEM J 322 Units produced 200 (e) Standards per unit: Material...
-
Behavioral considerations in MACS design List the four key behavioral considerations in MACS design and explain the importance or benefits of each.
-
The beam is constructed from two boards fastened together at the top and bottom with three rows of nails spaced every 8 in. If each nail can support a \(300-\) lb shear force, determine the maximum...
-
The double-web girder is constructed from two plywood sheets that are secured to wood members at its top and bottom. If each fastener can support \(600 \mathrm{lb}\) in single shear, determine the...
-
The beam is fabricated from two equivalent structural tees and two plates. Each plate has a height of 6 in. and a thickness of 0.5 in. If a shear of \(V=50\) kip is applied to the cross section,...
Study smarter with the SolutionInn App