Question
Beartowne Enterprises uses an activity-based costing system to assign costs in its auto-parts division. Activity Est. Indirect Activity Costs Allocation base Cost allocation rate Materials
Beartowne Enterprises uses an activity-based costing system to assign costs in its auto-parts division.
| Activity | Est. Indirect Activity Costs | Allocation base | Cost allocation rate |
| Materials | $56,000 | Material moves | $7.00/move |
| Assembling | $165,000 | Direct labor hours | $4.00/dir. labor hour |
| Packaging | $50,000 | # of finished units | $4.50/finished unit |
The following units were produced in December with the following information:
| Part # | # Produced | Materials Costs | # Moves | Dir. Labor Hrs. |
| Part 001 | 1250 | $4500 | 500 | 300 |
| Part 002 | 2500 | $6000 | 700 | 400 |
| Part 003 | 4250 | $9000 | 2200 | 1350 |
Total packaging fees for all three parts is:
| $15,300 | ||
| $16,875 | ||
| $32,000 | ||
| $36,000 |
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Evidence Based Audit In General Practice
Authors: Richard Baker, Robin C. Fraser MD FRCGP, Mayur Lakhani MRCP MRCGP DCH
1st Edition
075063104X, 978-0750631044
