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Bibing Kah Ltd has estimated that they will incur $285,050 overhead cost next year. The company uses activity based costing to allocate OVH to each
Bibing Kah Ltd has estimated that they will incur $285,050 overhead cost next year. The company uses activity based costing to allocate OVH to each job. Here is the breakdown per activity:
Activities | Estimated MOH | Estimated Bases | Allocation Base |
Procurement | $ 300.00 | 10 PO | # of purchase orders |
Machine setup | $ 7,000.00 | 35 Setups | # of setups |
Insertion of parts | $ 112,000.00 | 4,000 parts | # of parts |
Finishing | $ 150,000.00 | 2,500 DL hours | # of finished DL hours |
Shipments | $ 15,000.00 | 10 shipments | # of shipments |
Invoicing | $ 750.00 | 10 Invoices | # of completed invoices |
Total | $ 285,050.00 |
Calculate the pre determined rate for each activity
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