Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Cameron Company has two major segments that incur a total overhead amount of $1,298,000. The segments have the following additional information. East West Total Annual

Cameron Company has two major segments that incur a total overhead amount of $1,298,000. The segments have the following additional information.

East

West

Total

Annual revenue

$

4,090,000

$

2,400,000

$

6,490,000

Annual salesperson salaries

600,000

845,000

1,445,000

Number of customers

120

180

300

Miles driven

360,000

240,000

600,000

The business also has overhead costs as follows:

Cost Pool

Cost in Pool

Cost driver

Travel

$

720,000

Number of customers

Administrative

578,000

Salaries

Total

$

1,298,000

NOTE: Salesperson salaries are not overhead costs that need to be allocated.

If the company uses a plant-wide allocation method based on sales revenue, then what is the overhead allocation rate? Enter your amount with no dollar sign and rounded to two decimal places.

Under this method, how much of the total overhead would be allocated to the East Division? Enter your amount with no dollar sign or commas and round your amount to a whole number.

Under this method, how much of the total overhead would be allocated to the West Division? Enter your amount with no dollar sign or commas and round your amount to a whole number.

If the company replaced its plant-wide allocation method with an activity-based costing overhead allocation method, then what would be the overhead rate for Travel Costs? Enter your amount with no dollar sign or commas and rounded to a whole number.

If the company replaced its plant-wide allocation method with an activity-based costing overhead allocation method, then what would be the overhead rate for Administrative Costs? Enter your amount with no dollar sign or commas and rounded to two decimal places.

If the company replaced its plant-wide allocation method with an activity-based costing overhead allocation method, then what amount of Travel Costs would be allocated to the East Division? Enter your amount with no dollar sign or commas and round your amount to a whole number.

If the company replaced its plant-wide allocation method with an activity-based costing overhead allocation method, then what amount of Travel Costs would be allocated to the West Division? Enter your amount with no dollar sign or commas and round your amount to a whole number.

If the company replaced its plant-wide allocation method with an activity-based costing overhead allocation method, then what amount of Administrative Costs would be allocated to the East Division? Enter your amount with no dollar sign or commas and round your amount to a whole number.

If the company replaced its plant-wide allocation method with an activity-based costing overhead allocation method, then what amount of Administrative Costs would be allocated to the West Division? Enter your amount with no dollar sign or commas and round your amount to a whole number.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Effective Communications

Authors: Elearn

1st Edition

1138456136, 9781138456136

More Books

Students also viewed these Accounting questions

Question

1. Have a 2-week arrangement; then evaluate.

Answered: 1 week ago