Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Durban Metal Products, Ltd., of the Republic of South Africa makes specialty metal parts used in applications ranging from the cutting edges of bulldozer blades

image text in transcribed

Durban Metal Products, Ltd., of the Republic of South Africa makes specialty metal parts used in applications ranging from the cutting edges of bulldozer blades to replacement parts for Land Rovers. The company uses an activity based costing system for internal decision-making purposes. The company has four activity cost pools as listed below: Activity Cost Pool Activity Measure Activity Rate s 17.20 per direct labor Order size customer orders Product testing Number of testing hours 76.00 per testing hour Number of direct labor hours Number of customer orders Number of sales calls hour 352.00 per customer order s1,491.00 per sales call Selling managing director of the company would like information concerning the cost of a recently completed order for heavy duty trailer axles. The order required 140 direct labor-hours, 11 hours of product testing, and 5 sales calls. Required What is the total overhead cost assigned to the order for heavy duty trailer axles? ABC Cost Activity Cost Pool Order size Customer orders Product testing Selling Total overhead cost

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

Step: 3

blur-text-image

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

ACCA Financial Accounting Study Text 2020 21

Authors: Emile Woolf International

1st Edition

1848439210, 978-1848439214

More Books

Students also viewed these Accounting questions

Question

Describe healthcare disparity and its importance.

Answered: 1 week ago