Question
30. Rockwell Co. budgets factory overhead (FO) cost split into two activities assembly and finishing Rockwell plans to manufacture multiple units of three products
30. Rockwell Co. budgets factory overhead (FO) cost split into two activities assembly and finishing Rockwell plans to manufacture multiple units of three products X, Y, and Z. The Budgeted Factory Overhead cost (Activity Cost Pool) for each of the two activities is: Activity Assembly Finishing Total Activity Cost Pool Factory Overhead Cost 5820,000 5580,000 $1,400,000 Activity Base Number of Parts Direct Labor (DL) hours Activity-base usage (product specifications) for each of the three products is: Activity Assembly 10,000 parts 12,000 parts Z 18,000 parts Finishing 3,000 DL brs. 5,000 DL hrs. 7,000 DL hrs. Totals 40,000 parts 15,000 DL hrs. Instructions (1, 2, 3, 4): 1) Calculate the Activity FO rates for each activity (round to nearest 50.00). Assembly: Finishing: 2) Calculate total Factory Overhead cost applied to "X" using Activity-Based Costing (ABC) (round to nearest $1). 3) Calculate total Factory Overhead cost applied to "Y" using Activity-Based Costing (ABC) (round to nearest SI). 4) Calculate total Factory Overhead cost applied to "Z" using Activity-Based Costing (ABC) (round to nearest SI).
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