Activity based costing

Mid-Term Question #4 ABC FILE HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW X Cut Calibri Ef Wrap Text General Paste BE Copy 12 - A" A " Normal Format Painter BIU - - MAY E Merge & Center $ % " 00 2.0 Conditional Format as Check Cell Formatting * Table Clipboard Font Alignment Number A7 X V fx A Ic D E F G H 6 7 8 10 The DSU Corporation sells two versions of gas grills: a regular model and a stainless steel model. To better estimate the costs of the two products, 11 the company recently adopted an activity-based costing system. Last year, the company incurred $100,000 in overhead costs. Detailed information 12 is listed below: 13 14 Activity Allocation Base Overhead Cost 15 16 Purchasing Number of Purchase Orders 30% 17 Machining Number of Machine Hours 40% 18 Assembly Number of Assembly 20% 19 Quality Inspection Number of Inspections 10% 20 21 22 DSU Corporation tracked the number of purchase orders, machine hours, 23 assembly hours and inspections consumed by each model as follows: 24 25 26 Stainless Steel Regular 27 28 Purchase Orders 1,000 2,000 29 Machine Hours 1,500 2,000 30 Assembly Hours 2,000 3,000 31 Inspections 2,000 2,000 32 33 34 If the production of a regular grill requires two (2) purchase orders, one (1) machine hour, one and one half (1.5) assembly hours 35 and one (1) inspection, calculate the total overhead cost that should be allocated to each unit (i.e. one regular grill)? 36 37 38 39 40 41 42 Sheet1 Sheet2 Sheet3 + ENTER X