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

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 PoolActivity MeasureActivity RateOrder sizeNumber of direct labor-hours$16.80per direct labor-hourCustomer ordersNumber of customer orders$362.00per customer orderProduct testingNumber of testing hours$70.00per testing hourSellingNumber of sales calls$1,494.00per sales call

The managing director of the company would like information concerning the cost of a recently completed order for heavy-duty trailer axles. The order required 180 direct labor-hours, 19 hours of product testing, and 3 sales calls.

Required:

What is the total overhead cost assigned to the order for heavy-duty trailer axles?

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

Business Communication Essentials

Authors: Courtland Bovee

4th Canadian Edition

0133508706, 978-0133508703

More Books

Students also viewed these Accounting questions

Question

1. Too understand personal motivation.

Answered: 1 week ago