Question
Anfuso Corporation uses activity-based costing. The company has provided the following data concerning its activity-based costing system: Activity Cost Pools (and Activity Measures) Estimated Overhead
AnfusoCorporation uses activity-based costing.
The company has provided the following data concerning its activity-based costing system:
Activity Cost Pools (and Activity Measures) | Estimated Overhead Cost for 20X5 |
Machine related(machine-hours)..................... | $159,500 |
Batch setup(setups)........................................ | $269,000 |
General factory (direct labor-hours)................. | $166,500 |
Expected Activity in 20X5 | ||
Activity levels | Product X | Product Y |
Machine hours........... | 8,000 | 3,000 |
Setups................. | 6,000 | 4,000 |
Direct labor hours...... | 5,000 | 4,000 |
a. Compute the activity rate for each pool. (Just compute the rates here- you are not being asked to allocate costs yet.)
b.This is a continuation of theAnfusoproblem above. Refer to that.
A batch of product X uses the following during 20X5
- Direct materials: $1,200 (300 pounds at $4/lb.)
- Direct labor hours: $4,500 (450 at $10 wage rate)
- Machine hours: 840 hours
- Setups: 510 setups
1. Compute the overhead cost that will be allocated to this batch of products, using ABC. Labelyour work clearly.
2. Compute the total cost of that batch of products.
(Hint- I want total cost, not just overhead cost)
Put your final answers for both partsfirst, then show workunderthat.
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