Question
1. Activity Cost Pool Activity Measure Estimated Overhead Costs Expected Activity Machine Setup Number of Setups 20,000 50 Special Processing Machine Hours 200,000 8,000 General
1.
Activity Cost Pool | Activity Measure | Estimated Overhead Costs | Expected Activity |
Machine Setup | Number of Setups | 20,000 | 50 |
Special Processing | Machine Hours | 200,000 | 8,000 |
General Factory | Direct labor Hours | 250,000 | 12,500 |
Calculate the activity rate for the following:
Machine Setup: ____________
Special Processing: ____________
General Factory: ____________
2.
Product A | Product B | Product C | ||
Direct Labor Costs | $ 40,000.00 | $ 190,000.00 | $ 50,000.00 | |
Direct Materials | $ 100,000.00 | $ 120,000.00 | $ 60,000.00 | |
Number of Setups | 30 | 10 | 15 | |
Machine hours | 5000 | 2800 | 3000 | |
direct labor hours | 2500 | 11875 | 2000 |
Calculate the total costs associated with Product A, Product B, and Product C for this months production run:
Total Costs Product A: ____________
Total Costs Product B: ____________
Total Costs Product C: ____________
Actual manufacturing overhead for the month was $625,500. Note that all over/under applied overhead is applied to cost of goods sold at the end of the month. Answer the following questions:
Was manufacturing overhead over or under applied? ____________
What is the amount of over/under applied overhead? ____________
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