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Angora, Inc. uses activity-based costing to cost its two products: Standard and Deluxe. The company has provided the following data relating to its activities: Estimated
Angora, Inc. uses activity-based costing to cost its two products: Standard and Deluxe. The company has provided the following data relating to its activities: Estimated Cost Cost Pools Machine (machine-hours) Cutting (number of cuts) Sales (number of orders) $144,000 $536,000 $108,000 Estimated Activity Deluxe 7,000 Standard 1,000 3,000 Machine hours 5,000 Number of cuts 2,000 7,000 Number of orders Required: What is the activity rate for the cutting cost pool? a. If actual activity is the same as that estimated, what is the total amount of overhead cost allocated to the Standard product? b. 10. Camilla, Inc. uses activity-based costing to cost its two products: Standard and Deluxe. The company has provided the following data relating to its activities: Cost Pools Estimated Cost $144,000 $536,000 $108,000 Machine (machine-hours) Cutting (number of cuts) Sales (number of orders) Estimated Activity Standard Deluxe Machine hours Number of cuts Number of orders 1,000 3,000 7,000 7,000 5,000 2,000 Required: What is the activity rate for the sales cost pool? a. b. If actual activity is the same as that estimated, what is the total amount of overhead cost allocated to the Deluxe product
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