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Activity Based Costing The overhead cost is now being allocated based on the following table below: Category Plant and Equipment Management Purchasing Sales and Shipping
Activity Based Costing
The overhead cost is now being allocated based on the following table below:
Category | Plant and Equipment | Management | Purchasing | Sales and Shipping |
Total Cost | $700.00 | $2,200.00 | $600.00 | $1,500.00 |
Cost Allocation | Square feet | Labor hours | Purchase orders | Customer orders |
Total units used | 10000 | 2400 | 130 | 91 |
Product A | 1000 | 500 | 10 | 5 |
Product B | 2000 | 450 | 35 | 20 |
Product C | 3000 | 690 | 60 | 41 |
Product D | 4000 | 760 | 25 | 25 |
Determine the following based on the original production plan (product A -700, B-350, C-80 and D-42):
- Total allocated overhead cost?
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