Question
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.
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