Question
Bluefield has decided to use an ABC costing system and has identified the following detailed information about its activity pools and cost drivers: Activity pools
Bluefield has decided to use an ABC costing system and has identified the following detailed information about its activity pools and cost drivers:
| Activity pools | |
|---|---|
| Materials handling | $ 63,720 |
| Machine maintenance | $ 19,980 |
| Cost drivers | |
| Number of material moves | 540 |
| Number of machine hours | 54,000 |
Required:
- Calculate Bluefields activity rate for each activity pool.
- Determine the amount of overhead assigned to Bluefields products if each has the following activity demands:
| Product A | Product B | |
|---|---|---|
| Number of material moves | 250 | 290 |
| Number of machine hours | 16,900 | 37,100 |
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Intermediate Accounting
Authors: J. David Spiceland, James Sepe, Mark Nelson
6th edition
978-0077328894, 71313974, 9780077395810, 77328892, 9780071313971, 77395816, 978-0077400163
