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1.Assign overhead costs to activity pools 2. calculate activity rates Total cost Order size Customer Design order changes Customer Other Total Relations $400,000 0% $300,000
1.Assign overhead costs to activity pools 2. calculate activity rates Total cost Order size Customer Design order changes Customer Other Total Relations $400,000 0% $300,000 30% 0% 50% 40% 10% 10% 10% 50% 100% 0% $200,000 10% $600,000 10% 20% 30% 10% 10% 30% 0% 30% 50% 100% 100% Production Department Indirect factory wages Factory equipment depreciation factory utilities Factory building General administrative department Administrative wages and salaries Office Equipment Dep Administrative building leas Marketing Department Marketing wages and salaries Selling expenses $500,000 0% 0% 30% 30% 40% 100% 40% $100,000 20% $120,000 10% 0% 30% 10% 10% 30% 50% 100% 100% 0% $300,000 20% $80,000 30% 20% 30% 10% 20% 30% 10% 20% 10% 100% 100%
1.Assign overhead costs to activity pools
2. calculate activity rates
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