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4 Pro-Craft Company computed the following activity rates to allocate overhead cost for the year. Activity 20 Materials handling Quality inspection points Activity Rate
4 Pro-Craft Company computed the following activity rates to allocate overhead cost for the year. Activity 20 Materials handling Quality inspection points Activity Rate $ 55 per materials requisition Utilities $ 45 per inspection $ 6 per machine hour During January, the company produced the following two jobs. Allocate overhead cost to each job using the activity rates. Activity Cost Driver Materials requisitions Inspections Machine hours Activity Usage Job A Job B 6 4 9 5 325 225 Allocate overhead based on actual activity usageJob A Activity Materials handling Quality inspection Utilities Total Activity Usage Allocate overhead based on actual activity usage-Job B Activity Materials handling Quality inspection Utilities Total Activity Usage Activity Rate Allocated Cost Activity Rate Allocated Cost
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