ABC cost report. Be sure to show an allocation of the overhead cost to Bats and Gloves
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Question:
ABC cost report. Be sure to show an allocation of the overhead cost to Bats and Gloves and proof that you did the allocation correctly.
The activities involved with manufacturing the bats and gloves in a week include the following.
ActivityBatsGloves
Set-Ups 24
Machining150 hours 350 hours
Receiving30 receipts70 receipts
Packing250 deliveries 550 deliveries
Engineering400 hours 600 hours
The overhead costs per activity are as follows in a week.
ActivityCost
Set Ups$600
Machining$7,500
Receiving$3,000
Packing$16,000
Engineering$22,000
Total$49,100
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