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

Expert Solution

ekkarill92 answered 3 years ago

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The following table lists out the overhead cost: Activity cost pool Overhead cost (£) Additional Notes...

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