The following annual budgeted information is available for Speckner Company, which manufactures folding tables, chairs, and footstools:
Question:
During the current month, the following cost drivers were used:
Required
A. Classify each of the activities as facility- sustaining, product- sustaining, batch- related, or unit-related.
B. Determine the types of costs included in each activity.
C. Calculate the overhead rate for each cost driver.
Transcribed Image Text:
Activity Setting up machines Processing orders Handing materials Using machines Managing quality Packing and shipping Using building Total cost Estimated Cost Cost Driver 90000 150,000 60,000 180,000 150,000 120,000 600,000 $1,350,000 Number of production runs Number of orders Pounds of materials Number of machine hours Number of inspections Number of units shipped Square feet occupied Usage 150 300 2,000 20,000 60 30,000 300,000 Tables Chairs Footstools Number of production runs Number of orders Pounds of materials Number of machine hours Number of inspections Number of units shipped Square feet occupied 400 500 200 300 200 300 1,000 60,000 500 40,000 300 100,000
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Related Book For
Introduction to Accounting An Integrated Approach
ISBN: 978-0078136603
6th edition
Authors: Penne Ainsworth, Dan Deines
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