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A company produces pool pumps. Overhead costs have been identified as follows: Activity Pool Cost Material handling $ 65,985.00 Machine maintenance 111,000.00 Setups 82,236.00 Cost
A company produces pool pumps. Overhead costs have been identified as follows:
| Activity Pool | Cost |
|---|---|
| Material handling | $ 65,985.00 |
| Machine maintenance | 111,000.00 |
| Setups | 82,236.00 |
| Cost Driver | Total Activity |
|---|---|
| Number of moves | 415 |
| Number of machine hours | 37,000 |
| Number of production runs | 66 |
The company makes three models of pumps with the following activity demands:
| Economy | Standard | Premium | |
|---|---|---|---|
| Units produced | 10,130 | 20,600 | 3,520 |
| Number of moves | 112 | 133 | 170 |
| Machine hours | 9,950 | 20,900 | 6,150 |
| Production runs | 20 | 15 | 31 |
Required:
- Calculate the activity rate for each activity.
- Determine the amount of indirect costs assigned to each of the products.
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Auditing The Auditors Waste And Abuse At Irs And Customs Hearing Before The Committee On Governmental Affairs United States Senate One Hundred Session August 4 1993
Authors: U. S. Committee On Governmental Affairs
1st Edition
1334865558, 978-1334865558
