need help with 7 a) and )b not sure if i did the first part correct with the budgeted OH and im not sure what to do with 3c) 25.17 . is that even used ? it says as it relates to each cost pool

7) Activity Based Costing as an alternative: Because the company has become much more automated in recent periods, Superior is considering adopting an Activity Based Costing System to replace its traditional costing system. Superior Company would like to compare operating results under the two methods, traditional and ABC. Superior Company has identified the following cost activities; Support, Batch setups, Product sustaining, Inspection and General Factory. Eighteen percent of the overhead costs can be attributable to Support, 10% to Batch Setups, 22% to Product sustaining, 8% for inspection and the rest to General Factory. Superior Company has identified the drivers for each of these costs pools and accumulated statistics for each as they have related to the recent period. Use the table below to complete each requirement a) BUDGETED overhead is allocated to cach activity. Use the percentage provided in the description (underlined) to allocate the total applied overhead determined in 3c) as it relates to each cost pool. MAKE SURE YOU USE BUDGETED OVERHEAD FROM 3b. 3C) 25.17 Allocated costs Support (Total x 18%) 63,418 Batch Setups (Total x 10%) 3512 32 Product Sustaining (Total x 44%) T55,020 Inspection (Total x 8%) 28/186 General Factory (Total x 20%) 701464 Total Budgeted OH = (amount from 3b) $352,320 36) 352.31 b) Use the driver units to calculate an activity rate for each pool by dividing Allocated costs by units". Show 2 decimals for calculated rates. Allocated Driver Calculated costs units Driver Activity Rate Support 3,000 Receipts Batch Setups 155 # of set ups Product Sustaining 70 # of materials Inspection 1,200 units General Factory 14,000 machine hours Budgeted OH (36) b) Now assume that Superior had budgeted for only 48,000 hours of direct labor. Determine the value of the averhead that would have book BUDGETED for the year. Hint: Une formula (1) above. (Show whole number) 18100 X 7.34 = 3521320 = Budgeted oh 2 c) Instead of using direct labor hours to apply overhead, Superior could have used machine hours. Assume Superior had originally budgeted 14,000 machine hours for the year. Calculate the alternative predetermined rate. Hint: Use formula (1) above. (show 2 decimals) 3521320 = 25,17 74000 7) Activity Based Costing as an alternative: Because the company has become much more automated in recent periods, Superior is considering adopting an Activity Based Costing System to replace its traditional costing system. Superior Company would like to compare operating results under the two methods, traditional and ABC. Superior Company has identified the following cost activities; Support, Batch setups, Product sustaining, Inspection and General Factory. Eighteen percent of the overhead costs can be attributable to Support, 10% to Batch Setups, 22% to Product sustaining, 8% for inspection and the rest to General Factory. Superior Company has identified the drivers for each of these costs pools and accumulated statistics for each as they have related to the recent period. Use the table below to complete each requirement a) BUDGETED overhead is allocated to cach activity. Use the percentage provided in the description (underlined) to allocate the total applied overhead determined in 3c) as it relates to each cost pool. MAKE SURE YOU USE BUDGETED OVERHEAD FROM 3b. 3C) 25.17 Allocated costs Support (Total x 18%) 63,418 Batch Setups (Total x 10%) 3512 32 Product Sustaining (Total x 44%) T55,020 Inspection (Total x 8%) 28/186 General Factory (Total x 20%) 701464 Total Budgeted OH = (amount from 3b) $352,320 36) 352.31 b) Use the driver units to calculate an activity rate for each pool by dividing Allocated costs by units". Show 2 decimals for calculated rates. Allocated Driver Calculated costs units Driver Activity Rate Support 3,000 Receipts Batch Setups 155 # of set ups Product Sustaining 70 # of materials Inspection 1,200 units General Factory 14,000 machine hours Budgeted OH (36) b) Now assume that Superior had budgeted for only 48,000 hours of direct labor. Determine the value of the averhead that would have book BUDGETED for the year. Hint: Une formula (1) above. (Show whole number) 18100 X 7.34 = 3521320 = Budgeted oh 2 c) Instead of using direct labor hours to apply overhead, Superior could have used machine hours. Assume Superior had originally budgeted 14,000 machine hours for the year. Calculate the alternative predetermined rate. Hint: Use formula (1) above. (show 2 decimals) 3521320 = 25,17 74000