Tim's Timekeepers Inc. manufactures three types of products: Sundials, Wall Clocks, and Grandfather Clocks. The company...

 

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Tim's Timekeepers Inc. manufactures three types of products: Sundials, Wall Clocks, and Grandfather Clocks. The company uses an activity-based costing system. At the beginning of the year, the company made the following estimates of cost and activity for its three cost pools: Cost Driver Direct labor hours Number of units Total Expected Activity 22,000 hours Clock Face etching 14,000 units $89,600 $180,200 General factory Square footage 170,000 square feet Expected activity for the year was distributed among the company's three products as follows: Cost Pool Labor-related Cost Pool Labor-related Clock face etching General factory Cost Driver Direct labor hours Number of units Square footage Expected Overhead Cost $156,200 Sundials 6,000 5,000 30,000 Expected Activity Wall 11,000 8,000 80,000 Grandfathers 5,000 1,000 60,000 Assume the actual amounts equaled the budgeted amounts. If the company uses the activity based costing method, how much of the overhead will be allocated to each of the products? Tim's Timekeepers Inc. manufactures three types of products: Sundials, Wall Clocks, and Grandfather Clocks. The company uses an activity-based costing system. At the beginning of the year, the company made the following estimates of cost and activity for its three cost pools: Cost Driver Direct labor hours Number of units Total Expected Activity 22,000 hours Clock Face etching 14,000 units $89,600 $180,200 General factory Square footage 170,000 square feet Expected activity for the year was distributed among the company's three products as follows: Cost Pool Labor-related Cost Pool Labor-related Clock face etching General factory Cost Driver Direct labor hours Number of units Square footage Expected Overhead Cost $156,200 Sundials 6,000 5,000 30,000 Expected Activity Wall 11,000 8,000 80,000 Grandfathers 5,000 1,000 60,000 Assume the actual amounts equaled the budgeted amounts. If the company uses the activity based costing method, how much of the overhead will be allocated to each of the products?

Answer rating: 100% (QA)

Laborrelated Predetermined overhead rate Expected overhead cost Total expected direct labor hours 156200 22000 hours 710 per direct labor hour Clock F... View the full answer