Sundial Co. has assigned $710,000 in total overhead cost to four different activity cost pools. The...

 

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Sundial Co. has assigned $710,000 in total overhead cost to four different activity cost pools. The activity requirements for its two products lines, Economy and Deluxe, are shown below. Input formulas to solve for the various unknowns in the table below. The formulas may vary for each cost pool depending on what items are known and unknown. Activity Cost Pool Material Handling Overhead Cost Activity Cost Driver Activity Rate Activity Requirements by Product Line Activity Economy Model Proportion (%) Activity Deluxe Proportion Model (%) S 300,000 Machine Set-Ups S 210,000 5,000 Material moves Set-ups Engineering Support Engineering hours $ per move per set-up 12.50 per hour 2,000 3,000 300 900 2,000 20% Power and Space 20,000 square feet. per sq. ft. 50% Total overhead cost S 710,000 0 1 Use formulas to assign overhead to each product using both activity rates and activity proportions (%). 2 Create if/then statements to verify that the two methods produce the same results. 3 Sundial Co. has assigned $710,000 in total overhead cost to four different activity cost pools. The activity requirements for its two products lines, Economy and Deluxe, are shown below. Input formulas to solve for the various unknowns in the table below. The formulas may vary for each cost pool depending on what items are known and unknown. Activity Cost Pool Material Handling Overhead Cost Activity Cost Driver Activity Rate Activity Requirements by Product Line Activity Economy Model Proportion (%) Activity Deluxe Proportion Model (%) S 300,000 Machine Set-Ups S 210,000 5,000 Material moves Set-ups Engineering Support Engineering hours $ per move per set-up 12.50 per hour 2,000 3,000 300 900 2,000 20% Power and Space 20,000 square feet. per sq. ft. 50% Total overhead cost S 710,000 0 1 Use formulas to assign overhead to each product using both activity rates and activity proportions (%). 2 Create if/then statements to verify that the two methods produce the same results. 3