Question
Clark Industries use ABC to allocate overhead costs. Clark manufactures 10,000 L3BASIC and 5,000 M4ADVANCED. The activities and the overhead costs of each activity are
Clark Industries use ABC to allocate overhead costs. Clark manufactures 10,000 L3BASIC and 5,000 M4ADVANCED. The activities and the overhead costs of each activity are as follows: Activity Costs Machine Setup $200,000 Machine Repair $300,000 Factory Maintenance $100,000 Cleaning Workplace $50,000 Sampling Product Quality $150,000 Total Overhead Costs $800,000 Clark uses 3 pools to assign overhead: SETUP (includes Machine Setup and Machine Repair) DRIVER: # OF SETUPS FACTORY SERVICES (includes Factory Maintenance and Cleaning Workplace) DRIVER: SQUARE FEET QUALITY CONTROL (Sampling Product Quality) DRIVER: # OF LOTS Products SETUPS LOTS SQUARE FEET L3BASIC 60 20 12,000 M4ADVANCED 40 30 18,000 What is the overhead rate of the POOL Quality Control? DONT WRITE THE NAME OF THE DRIVER, JUST THE RATE. DON'T USE COMMA SEPARATORS EX. IF YOUR ANSWER IS 2,000 PER DLH JUST WRITE 2000
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