Sundial Company has assigned $710,000 in total overhead cost to four different activity cost pools. The...
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Sundial Company 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. 9 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. 5 6 7 Note: Use cell A2 from the given information to complete this question. B 1 Assign indirect costs to products or services using activity based costing. Activity Overhead Cost Cost Driver Total overhead cost Activity Cost Pool Material Handling 2 Machine Set-Ups 3 Engineering Support 4 Power and Space 5 $ 710,000 16 7 Use formulas to assign overhead to each product using both activity rates and activity proportions (%). 18 $ $ 300,000 210,000 5,000 Material moves Set-ups Activity Rate per move per set-up Engineering hours $12.50 per hour 20,000 square feet. per square feet Economy Model Activity Requirements by Product Line Deluxe Model 2,000 3004 2,000 Activity Proportion (%) 20% 50% 3,000 900 Activity Proportion (%) Use formulas to assign overhead to 3 21 each product using both activity rates and activity proportions (%). Create if/then statements to verify that the two methods produce the same results. Note: Use cell A2 from the given information to complete this question. 22 23 Activity Cost Pool 24 Material Handling 25 Machine Set-Ups 26 Engineering Support 27 Power and Space 28 Total Overhead Cost 29 30 31 Overhead Assigned Using Activity Rates Total Economy Deluxe Overhead Assigned Using Activity Proportions (96) Deluxe Economy Total Verification: Create if/t to determine if the b produce identical resul "pass" or " Delu pass pass pass pass pass Economy pass pass (pass pass pass I n Sundial Company 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. 9 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. 5 6 7 Note: Use cell A2 from the given information to complete this question. B 1 Assign indirect costs to products or services using activity based costing. Activity Overhead Cost Cost Driver Total overhead cost Activity Cost Pool Material Handling 2 Machine Set-Ups 3 Engineering Support 4 Power and Space 5 $ 710,000 16 7 Use formulas to assign overhead to each product using both activity rates and activity proportions (%). 18 $ $ 300,000 210,000 5,000 Material moves Set-ups Activity Rate per move per set-up Engineering hours $12.50 per hour 20,000 square feet. per square feet Economy Model Activity Requirements by Product Line Deluxe Model 2,000 3004 2,000 Activity Proportion (%) 20% 50% 3,000 900 Activity Proportion (%) Use formulas to assign overhead to 3 21 each product using both activity rates and activity proportions (%). Create if/then statements to verify that the two methods produce the same results. Note: Use cell A2 from the given information to complete this question. 22 23 Activity Cost Pool 24 Material Handling 25 Machine Set-Ups 26 Engineering Support 27 Power and Space 28 Total Overhead Cost 29 30 31 Overhead Assigned Using Activity Rates Total Economy Deluxe Overhead Assigned Using Activity Proportions (96) Deluxe Economy Total Verification: Create if/t to determine if the b produce identical resul "pass" or " Delu pass pass pass pass pass Economy pass pass (pass pass pass I n
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Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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