Question: Part II - Problem 1 - Activity-Based Costing - 04 Note - The background Information is the same for all parts of this question. GolfClubsRUs
Part II - Problem 1 - Activity-Based Costing - 04 Note - The background Information is the same for all parts of this question. GolfClubsRUs manufactures 3 types of golf clubs: drivers, wedges, and putters. The company has decided to adopt an ABC system for allocating manufacturing overhead to production. It determines that the manufacturing process is made up of 3 activities, machine set-up fabrication, and packaging. The cost of each activity will be allocated using the activity allocation bases indicated and the estimated cost for each activity in 2020 is as shown: Activity Activity Allocation Base Total 2020 Estimated Cost Machine Set-up Number of set-ups $210,000 Fabrication Direct labor hours 102,000 Packaging Number of boxes 19.200 In addition, GolfClubsRUs estimates the following for 2020: Units to be Produced Direct labor hours per unit Number of set-ups Number of clubs in each box Drivers 5.000 5 hours 25 Wedges 10,000 2 hours Putters 2,000 3 hours 100 100 Q4: In June, Golf ClubsRUs produced one batch of putters. The batch contained 210 clubs and required 1 machine set-up, 640 direct labor hours and 2 boxes. How much overhead was allocated to this batch of putters
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