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13. Arcane Co. budgets factory overhead (FO) cost split into four activities: fabrication, painting, assembly, and inspecting. Arcane plans to manufacture three products in the
13. Arcane Co. budgets factory overhead (FO) cost split into four activities: fabrication, painting, assembly, 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 Direct Labor (DL) hours Painting Machine (mach.) Hours Assembly $???? Number of Parts Inspecting Number of Inspections Total $???? $???? S????? Determine activity-base usage (product specifications) for each of the three products (make up your own numbers): Activity A B Fabrication ???? DL hrs. ???? DL hrs. ???? DL hrs. Painting ??? mach. hrs. ??? mach. hrs. ??? mach. hrs. Assembly ??? parts ??? parts ??? parts 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: Assembly: Insp.: c) Total Factory Overhead cost applied to "A" using Activity- Based Costing (ABC) is
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