Exercise 17 15 Activity based costing rates and allocations LO P3 A company has two products standard and deluxe The company expects to produce 38,375 standard units and 64,240 deluxe units It uses activity based costing and has prepared the following analysis showing budgeted cost and cost driver activity for each of its three activity cost pools Budgeted Activity of Cost Driver Activity Cost Pool Budgeted Cost Standard Deluxe Activity 1 $ 108,500 2,500 5,250 Activity 2 $ 112,000 4,500 5,500 Activity 3 $ 98,600 3,000 2,800 Required 1 Compute overhead rates for each of the three activities 2 What is the expected overhead cost per unit for the standard units 3 What is the expected overhead cost per unit for the deluxe units (Round activity rate and cost per unit answers to 2 decimal places )

The Answer is in the image, click to view ...

Question: Exercise 17-15 Activity-based costing rates and allocations LO P3 A company has two products: standard and deluxe. The company expects to produce 38,375 standard units

Exercise 17-15 Activity-based costing rates and allocations LO P3

A company has two products: standard and deluxe. The company expects to produce 38,375 standard units and 64,240 deluxe units. It uses activity-based costing and has prepared the following analysis showing budgeted cost and cost driver activity for each of its three activity cost pools.

			Budgeted Activity of Cost Driver
Activity Cost Pool	Budgeted Cost		Standard		Deluxe
Activity 1	$	108,500		2,500	5,250
Activity 2	$	112,000		4,500	5,500
Activity 3	$	98,600		3,000	2,800

Required: 1. Compute overhead rates for each of the three activities. 2. What is the expected overhead cost per unit for the standard units? 3. What is the expected overhead cost per unit for the deluxe units? (Round activity rate and cost per unit answers to 2 decimal places.)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

! Required information [The following information applies to the questions displayed below.] Ozuna Company uses a job-order costing system with a plantwide predetermined overhead rate based on direct...

Check Exercise 17-15 Activity-based costing rates and allocations LO P3 A company has two products standard and deluxe. The company expects to produce 36,375 standard units and 62 240 deluxe units....

Exercise 17-15 Activity-based costing rates and allocations LO P3 A company has two products: standard and deluxe. The company expects to produce 39,775 standard units and 65,640 deluxe units. It...

Exercise 17-15 Activity-based costing rates and allocations LO P3 A company has two products: standard and deluxe. The company expects to produce 36,575 standard units and 62,440 deluxe units. It...

Exercise 17-15 Activity-based costing rates and allocations LO P3 A company has two products: standard and deluxe. The company expects to produce 37,575 standard units and 63,440 deluxe units. It...

Exercise 17-15 Activity-based costing rates and allocations LO P3 A company has two products: standard and deluxe. The company expects to produce 36,775 standard units and 62,640 deluxe units. It...

Exercise 17-15 Activity-based costing rates and allocations LO P3 A company has two products: standard and deluxe. The company expects to produce 39,975 standard units and 65.840 deluxe units It uses...

Exercise 17-15 Activity-based costing rates and allocations LO P3 A company has two products: standard and deluxe The company expects to produce 36,775 standard units and 62,640 deluxe units It uses...

Exercise 17-15 Activity-based costing rates and allocations LO P3 A company has two products: standard and deluxe. The company expects to produce 37,975 standard units and 63,840 deluxe units. It...

Exercise 17-15 Activity-based costing rates and allocations LO P3 A company has two products: standard and deluxe. The company expects to produce 39.975 standard units and 65.840 deluxe units. It...

Exercise 17-12 Activity-based costing rates and allocations LO P3 A company has two products: standard and deluxe. The company expects to produce It uses activity-based costing and has prepared the...

A study of 218 students at Ohio State University suggests a link between time spent on the social networking site Facebook and grade point average. Students who rarely or never used Facebook had...

Will, a shareholder in Wiley Corporation, lent money to the corporation. The corporation is unable to repay him. What tax issues should will consider with respect to the loan?

Andrews and Coy tax reporting year end is on March 3 1 every year. This year end scheduie is known as which of the following? A 5 2 . 5 3 week year end A catendar year end A quarterly year end A...

The first scenario will be a Verbal Judo scenario in which your scenario follows the standard Verbal Judo interaction: You need to ask somebody to modify their behavior either to do something or to...

B Who is responsible for developing a shared code when coaches and players speak different languages? How might the rules of communication be worked out between individuals who speak different...

Define goals in terms of problems to be solved (for example, Our goal is to raise $4,000 to beautify Dixon Park), not values to be embodied (Our goal is to be good citizens of this community)....

What group are you spending most of your time in these days? What type of communication network exists in the group? Is that network helping the group achieve its goals? If not, what changes might...