Fast Company has established the following overhead cost pools and cost drivers for the month of May Cost Pool Overhead Costs Cost Driver Levels Purchase orders $ 19,080 30 orders Machine setups 42,000 100 setups Electricity 20,000 20,000 kilowatt hours The following information pertains to the act...

To calculate the activitybased overhead rate per pur ...

Fast Company has established the following overhead cost pools and cost drivers for the month of May:

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Fast Company has established the following overhead cost pools and cost drivers for the month of May:

Cost Pool	Overhead Costs	Cost Driver Levels
Purchase orders	$ 19,080	30	orders
Machine setups	42,000	100	setups
Electricity	20,000	20,000	kilowatt hours

The following information pertains to the actual consumption of activity resources for two sample jobs completed during May.

	Job M1	Job M2
Number of units produced	480	960
Number of purchase orders	20	15
Number of setups	25	15
Number of kilowatt hours	480	960

What is the activity-based overhead rate per purchase order?

Related Book For answer-question

Cost Accounting Foundations and Evolutions

ISBN: 978-1111626822

8th Edition

Authors: Michael R. Kinney, Cecily A. Raiborn

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Posted Date: May 31, 2023 05:40 AM

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Fast Company has established the following overhead cost pools and cost drivers for the month of May:

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Cost Accounting Foundations and Evolutions

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