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13. Arcane Co budgets factory overhead (FO) cost split into three activities: fabrication, assembly, and inspecting. Arcane plans to manufacture four products in the following
13. Arcane Co budgets factory overhead (FO) cost split into three activities: fabrication, assembly, and inspecting. Arcane plans to manufacture four products in the following quantities: A: 1,000 units, B: 900 units, C: 650 units; and D: 600 units. Determine the Budgeted Factory Overhead cost (Activity Cost Pool) for each of the three factory activities (make up your own numbers): Activity Cost Pool Activity Factory Overhead Cost Activity Base Fabrication $???? Direct Labor (DL) hours Assembly $???? Number of Parts Inspecting $???? Number of Inspections Total $????? Determine activity-base usage (product specifications) for each of the four products (make up your own numbers): Activity B Fabrication ???? DL hrs. ???? DL hrs. ???? DL hrs. ???? DL hrs. Assembly Inspecting ??? 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: Assembly: Insp.: c) Total Factory Overhead cost applied to "A" using Activity-Based Costing (ABC) is: D ??? parts ??? parts ??? insp. ??? parts ??? insp. ??? parts 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: f) Total Factory Overhead cost applied to "D" using Activity-Based Costing (ABC) is
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