Question
a. Compute allocation rates of overhead for each of these activities: (8 point) Setup __________________________________ Processing orders_________________________ Machining ______________________________ Packaging products_______________________ b. Allocate the overhead
a. | Compute allocation rates of overhead for each of these activities: (8 point) Setup __________________________________ Processing orders_________________________ Machining ______________________________ Packaging products_______________________ |
b. | Allocate the overhead costs to Product X and Z using Activity-Based Costing. (6 points) Product X _______________________________________ Product Z _______________________________________ |
c. | Compute the plant-wide overhead rate using machine hours as the cost driver under the traditional costing system. (2 points) _______________________________________ |
d. | Allocate the overhead costs to Products Y and Z using the traditional costing system overhead rate calculated in part (c). (6 points) Product Y ________________________________ Product Z_________________________________ |
manufactures three different products (X, Y and Z). The estimated overhead costs are divided into four cost pools that use the following activity drivers: # of | # of | Machine | # of | |
Product | Setups | Orders | hours | Orders |
X | 20 | 35 | 1,000 | 75 |
Y | 5 | 70 | 1,500 | 125 |
Z | 10 | 15 | 500 | 50 |
Activity | Setup | Processing orders | Machining | Packaging |
Overhead cost | Rp17,500 | Rp8,400 | Rp135,000 | Rp40,000 |
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