Question
Bluefield has decided to use an ABC costing system and has identified the following detailed information about its cost pools and cost drivers: Activity cost
Bluefield has decided to use an ABC costing system and has identified the following detailed information about its cost pools and cost drivers:
| Activity cost pools | |
| Materials handling | $48,300 |
| Machine maintenance | $16,720 |
| Cost drivers | |
| Number of material moves | 420 |
| Number of machine hours | 44,000 |
Required: 1. Calculate Bluefields activity rate for each cost pool. 2. Determine the amount of overhead assigned to Bluefields products if each has the following activity demands:
| Product A | Product B | ||
| Number of material moves | 210 | 210 | |
| Number of machine hours | 16,500 | 27,500 | |
|
| |||
1. Calculate Bluefields activity rate for each cost pool. (Round your final answer for per material moves to nearest dollar amount and per machine hour to 4 decimal places.)
|
2. Determine the amount of overhead assigned to Bluefields products if each has the following activity demands: (Round intermediate calculations to 4 decimal places and your final answers to 2 decimal places.)
| Product A | Product B | ||
| Number of material moves | 210 | 210 | |
| Number of machine hours | 16,500 | 27,500 | |
|
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Intermediate Accounting
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Nicola M. Young, Irene M. Wiecek, Bruce J. McConomy
11th Canadian edition Volume 2
1119048540, 978-1119048541
