Question: Check My Work 1 . Activity Rate ( = ) Expected cost ( div ) activity capacity. Overhead Cost
Check My Work
Activity Rate Expected cost div activity capacity. Overhead Cost Activity Rate times Expected Activity demand
New Cost Pools Expected Cost Expected Cost div Total two most expensive times two least expensive New activity rates Above calculation div Activity Capacity. This answer is used to calculate the Total OH assigned to each Model.
Percentage error Total approx. A B C cost Activity cost assignment div Activity cost assignment. Discuss desirability. Approximately Relevant ABC
Silven Company has identified the following overhead activities, costs, and activity drivers for the coming year:
Silven produces two models of cell phones with the following expected activity demands:
Determine the total overhead assigned to each product using the four activity drivers.
Total Overhead Assigned
Determine the total overhead assigned to each model using the two most expensive activities. The costs of the two relatively inexpensive activities are allocated to the
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