Computing Cost Pools

MaScare Company produces clothing and has identified five overhead cost activities.

These activities are shown as the columns in the table below, along with the percentage

of time spent in each activity by various factory employees.

Percentage of Time Spent on Each Activity

Hiring and Creating

Repairing Training Inspecting Ordering Clothing

Equipment Workers Clothing Materials Designs

Maintenance people $100\%0\%0\%0\%0\%$

Production supervisor $30\%60\%10\%0\%0\%$

Accounting department $0\%40\%0\%60\%0\%$

Design staff $0\%0\%10\%15\%75\%$

Factory superintendent $10\%25\%45\%15\%5\%$

The total overhead cost associated with each of the categories of factory employee is

as follows:

Maintenance people $$150,000$

Production supervisor $75,000$

Accounting department $125,000$

Design staff $180,000$

Factory superintendent $135,000$

Required: From these data, compute the amount of the cost pool associated with each

of the five overhead cost activities.

Answer rating: 100% (QA)

To compute the amount of the cost pool associated with each of the five overhead cost activities we ... View the full answer