Oriole, Corp. manufactures balloons that it then packages and sells throughout the country. Oriole would like...

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Oriole, Corp. manufactures balloons that it then packages and sells throughout the country. Oriole would like to have a better understanding of its overall budgets, and has decided to implement the use of Activity-Based Costing (ABC). It has decided upon four unique key activities of which to assign activity-based rates to the following Manufacturing Overhead (MOH) costs: quality inspection $39000 (2600 inspection hours); maintenance, $17100 (1900 maintenance hours); moving and sorting, $13600 (680 pounds of materials); and factory supervisor wages, $60000 (4700 supervisor hours). Oriole will be allocating MOH to two different products: red balloons and blue balloons. Each balloon used the following resources: Red balloons: 1400 inspection hours, 1450 maintenance hours, 410 pounds of materials, and 2480 supervisor hours Blue balloons: 1200 inspection hours, 450 maintenance hours, 270 pounds of materials, 2220 supervisor hours How much of the Moving and Sorting MOH will be allocated to the blue balloons? Oriole, Corp. manufactures balloons that it then packages and sells throughout the country. Oriole would like to have a better understanding of its overall budgets, and has decided to implement the use of Activity-Based Costing (ABC). It has decided upon four unique key activities of which to assign activity-based rates to the following Manufacturing Overhead (MOH) costs: quality inspection $39000 (2600 inspection hours); maintenance, $17100 (1900 maintenance hours); moving and sorting, $13600 (680 pounds of materials); and factory supervisor wages, $60000 (4700 supervisor hours). Oriole will be allocating MOH to two different products: red balloons and blue balloons. Each balloon used the following resources: Red balloons: 1400 inspection hours, 1450 maintenance hours, 410 pounds of materials, and 2480 supervisor hours Blue balloons: 1200 inspection hours, 450 maintenance hours, 270 pounds of materials, 2220 supervisor hours How much of the Moving and Sorting MOH will be allocated to the blue balloons?

Answer rating: 100% (QA)

First we need to calculate the activitybased rate for moving a... View the full answer