Question
A running shoe manufacturer produces three types of shoes: traditional, minimalist, and spikes. The company uses the following information to determine activity rates for each
A running shoe manufacturer produces three types of shoes: traditional, minimalist, and spikes.
The company uses the following information to determine activity rates for each pool:
Cost Pool
Costs
Cost Driver
Shoe Production
$250,000
Pairs of Shoes
Shoe batches
$10,000
Batches
Shoe design
$5,000
Parts
Total
$265,000
Data concerning the three shoe products appear below:
Cost Driver
Traditional
Minimalist
Spikes
Number of pairs of shoes
20,000
15,000
5,000
Number of batches
300
500
200
Number of parts
50
70
80
What is the total amount of overhead applied to Minimalist shoes?
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Financial Accounting
Authors: Robert Libby, Patricia A Libby
7th Edition
0078111021, 9780078111020
