Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

13. Arcane Co, budgets factory overhead (FO) cost split into five activities: fabrication, painting, assembly, finishing and inspecting, Arcane plans to manufacture three products in

image text in transcribed
image text in transcribed
13. Arcane Co, budgets factory overhead (FO) cost split into five activities: fabrication, painting, assembly, finishing and inspecting, Arcane plans to manufacture three products in the following quantities: A: 500 units; B: 900 units, and C: 650 units. Determine the Budgeted Factory Overhead cost (Activity Cost Pool) for each of the four factory activities (make up your own numbers): Activity Cost Pool Activity Factory Overhead Cost Activity Base Fabrication S???? Direct Labor (DL) hours Painting S???? Machine (mach.) Hours Assembly $???? Number of Parts Finishing $???? Direct Labor (DL) hours Inspecting S???? Number of Inspections Total $????? Determine activity-base usage (product specifications) for each of the three products (make up your own numbers): Activity A Fabrication ???? DL hrs. ???? DL hrs. ???? DL. hrs. Painting ??? mach. hrs. ??? mach. hrs. ??? mach. hrs. Assembly ??? parts Finishing ??? DL hrs. ??? DL hrs. ??? DL hrs Inspecting ??? insp. ?!? insp. ??? insp. Instructions: a) Determine your Budgeted Factory Overhead (FO) cost and Activity-base usage data in the format above (make up your own numbers). b) Calculate the Activity FO rates for each activity. Fab: Paint: Insp: Assm: ??? parts ??? parts Fin: c) Total Factory Overhead cost applied to "A" using Activity Based Costing (ABC) is: c) Total Factory Overhead cost applied to A using Activity- Based Costing (ABC) is: d) Total Factory Overhead cost applied to B using Activity- Based Costing (ABC) is: e) Total Factory Overhead cost applied to C using Activity- Based Costing (ABC) is

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Measuring Business Interruption Losses And Other Commercial Damages An Economic Approach

Authors: Patrick A. Gaughan

3rd Edition

1119647916, 9781119647911

More Books

Students also viewed these Accounting questions

Question

What research background do you have?

Answered: 1 week ago

Question

=+9. Think about a campaign direction.

Answered: 1 week ago

Question

=+Who is the audience?

Answered: 1 week ago