1. Assign indirect costs to products or services using activity based costing.

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Calibri 11 A A 29 Wrap Text General Paste BIU- 30 Merge & Center - $ % Insert Delete Format 1 68 69 Conditional Format as Cell Formatting - Table Styles - Styles Clipboard Font Alignment Number Cells A1 v fi Sundial Co. has assigned $710,000 in total overhead cost to four different activity cost pools. The activity requirements for its two products lines, Economy B D E F H M 8.33 points 3 eBook G 1 Activity Requirements by Product Line Activity Deluxe Proportion Economy Model Proportion (%) Model (%) 2,000 3,000 300 900 2,000 20% 50% Print References Activity Cost Pool Overhead Cost Activity Cost Driver Activity Rate 5 Material Handling S 300,000 5,000 Material moves per move 6 Machine Set-Ups $ 210,000 Set-ups per set-up 7 Engineering Support Engineering hours $ 12.50 per hour 8 Power and Space 20,000 square feet. per sq. ft. 9 Total overhead cost 710,000 10 11 Use formulas to assign overhead to each product using both activity rates and activity proportions (%). 12 Create if/then statements to verify that the two methods produce the same results. 13 14 Overhead Assigned Using Activity Rates Overhead Assigned Using Activity Proportions (%) Verification: Create if/then statements to determine if the two methods produce identical results by indicating "pass" or "fail" Economy Deluxe Total Economy Deluxe Total Economy Deluxe Total 15 Activity Cost Pool 16 Material Handling 17 Machine Set-Ups 18 Engineering Support 19 Power and Space 20 Total Overhead Cost 21 Sheet1 + Calibri 11 A A 29 Wrap Text General Paste BIU- 30 Merge & Center - $ % Insert Delete Format 1 68 69 Conditional Format as Cell Formatting - Table Styles - Styles Clipboard Font Alignment Number Cells A1 v fi Sundial Co. has assigned $710,000 in total overhead cost to four different activity cost pools. The activity requirements for its two products lines, Economy B D E F H M 8.33 points 3 eBook G 1 Activity Requirements by Product Line Activity Deluxe Proportion Economy Model Proportion (%) Model (%) 2,000 3,000 300 900 2,000 20% 50% Print References Activity Cost Pool Overhead Cost Activity Cost Driver Activity Rate 5 Material Handling S 300,000 5,000 Material moves per move 6 Machine Set-Ups $ 210,000 Set-ups per set-up 7 Engineering Support Engineering hours $ 12.50 per hour 8 Power and Space 20,000 square feet. per sq. ft. 9 Total overhead cost 710,000 10 11 Use formulas to assign overhead to each product using both activity rates and activity proportions (%). 12 Create if/then statements to verify that the two methods produce the same results. 13 14 Overhead Assigned Using Activity Rates Overhead Assigned Using Activity Proportions (%) Verification: Create if/then statements to determine if the two methods produce identical results by indicating "pass" or "fail" Economy Deluxe Total Economy Deluxe Total Economy Deluxe Total 15 Activity Cost Pool 16 Material Handling 17 Machine Set-Ups 18 Engineering Support 19 Power and Space 20 Total Overhead Cost 21 Sheet1 +