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17. Armstrong Co. budgets factory overhead cost split into three activities: fabrication, assembly, and finishing. Armstrong plans to manufacture three types of bikes in the
17. Armstrong Co. budgets factory overhead cost split into three activities: fabrication, assembly, and finishing. Armstrong plans to manufacture three types of bikes in the following quantities: racing 1,500 units; and BMX 2,500 units. $???? Determine the Budgeted Factory Overhead cost (Activity Cost Pool) for each of the three factory activities: Activity Cost Pool Activity Factory Overhead Cost Activity Base Fabrication Number of Parts Assembly $???? Direct Labor (DL) hours Finishing $???? Machine (mach.) Hours Painting $???? Gallons (paint) Total $???? ??? parts Determine activity-base usage (product specifications) for each of the three types of bikes: Activity Racing BMX Fabrication ??? parts Assembly ??? DL hrs. ??? DL hrs. Finishing ??? mach. hrs. ??? mach. hrs. Painting ??? gallons ??? gallons Instructions: a) Determine your Budgeted Factory Overhead cost and Activity-base usage data above (make up your own numbers). b) Total Factory Overhead cost applied to Racing using Activity-Based Costing (ABC) is: c) Total Factory Overhead cost applied to BMX using Activity-Based Costing (ABC) is
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