MaScare Company produces clothing and has identified five overhead cost activities. These activities are shown as the

Question:

MaScare Company produces clothing and has identified five overhead cost activities. These activities are shown as the columns in the table below, along with the percentage of time spent in each activity by various factory employees.


Percentage of Time Spent on Each Activity Hiring & Creating Repairing Training Inspecting Ordering Clothing Equipment Wo


The total overhead cost associated with each of the categories of factory employee is as follows:
Maintenance people . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $150,000
Production supervisor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75,000
Accounting department . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125,000
Design staff . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 180,000
Factory superintendent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 135,000
Required:
From these data, compute the amount of the cost pool associated with each of the five overhead costactivities.

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Accounting concepts and applications

ISBN: 978-0538745482

11th Edition

Authors: Albrecht Stice, Stice Swain

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