Question: Alignment font Question 6 (9 Marks) Maverick Company makes custom covers for air conditioning units for homes and businesses. The company uses an activity-based costing




Alignment font Question 6 (9 Marks) Maverick Company makes custom covers for air conditioning units for homes and businesses. The company uses an activity-based costing system for its overhead costs. The company has provided the following data concerning its annual overhead costs and its activity cost pools Overhead Costs: Production Overhead Office Expense Total $100,000 $50,000 $150.000 Distribution of Resource Consumption: Activity Cost Pools Making Job Covers Support 40% 42% 12% Production overhead Office expense Other 18% 289 Total 100% 100% 60% The "other" activity cost pool consists of the costs of idle capacity and organization- Cover Page 01 02 03 04 05 06 07 08 09 SAMSUNG Styles NEO-A-EEL Number Alignment Pont L C D E F G H I J K The "Other activity cost pool consists of the costs of idle capacity and organization- sustaining costs. The amount of activity for the year is as follows Activity Cost Pool Making Covers Job Support Other Annual Activity 2,500 yards 200 jobs Not applicable Required: a) Prepare the first stage allocation of overhead costs to the activity cost pools by replicating and filling in the table below. (6 marks) Making Cowes Job Support Other Total Production Overhead Office Expense b) Compute the activity rates (i e cost per unit of activity) for the Making Covers and Job Support activity cost pools by replicating and filling in the table below. (3 marks) Cover Page 01 02 03 04 05 06 07 08 09 SAMSUNG General Wrap Text Merge Center - $ - % PUED O -A Conditional Format as Cell Formatting Table Styles - Styles Number Alignment KLM DEFGHI replicating and filling in the table below. (6 marks) Making Covers Job Support Other Total Production Overhead Office Expense b) Compute the activity rates (ie cost per unit of activity) for the Making Covers and Job Support activity cost pools by replicating and filling in the table below. (3 marks) Making Covers Job Support Production Overhead Office Expense Total Show all applicable calculations below each table Zover Page 01 02 03 04 05 06 07 08 09 SAMSUNG G H I replicating and filling in the table below. (6 marks) Making Covers Job Support Other Total Production Overhead Office Expense b) Compute the activity rates (ie cost per unit of activity) for the Making Covers and Job Support activity cost pools by replicating and filling in the table below. (3 marks) Making Covers Job Support Production Overhead Office Expense Total Show all applicable calculations below each table Cover Page 01 02 03 04 05 06 07 08 09 +
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
