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In: Accounting

Compute the ABC rates based on the following information: Activity Cost Pool (a) Estimated Overhead Cost...

Compute the ABC rates based on the following information:

Activity Cost Pool

(a)

Estimated

Overhead

Cost

(b)

Expected

Activity

Labor related...........................

$ 5,200

800

DLHs

Machine related.......................

1,500

2,000

MHs

Machine setups........................

4,200

100

setups

Production orders.....................

1,800

50

orders

Product testing........................

4,800

200

tests

Packaging...............................

7,000

500

packages

General factory........................

108,800

800

DLHs

Compute the single overall predetermined overhead rate based entirely on direct labor-hours:

Compute the cost for completing 100,000 widgets if the direct materials cost was $45,000 and the Direct labor cost was $60,000.   They data for activity based costing is below:

Actual

Activity

400

DLHs

900

MHs

20

setups

20

orders

40

tests

200

packages

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