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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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