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EA10 LO 6.3 Custom's has three cost pools and an associated cost driver to allocate the costs to the product. The cost pools, cost driver,
EA10 LO 6.3 Custom's has three cost pools and an associated cost driver to allocate the costs to the product. The cost pools, cost driver, estimated overhead, and estimated activity for the cost pool are. Cost Pool Material Machining Inspection Cost Driver Material requisitions Machine hours Number of inspections Estimated Activity per Driver 14,000 186,400 10,000 Estimated Overhead $ 52,500 363,500 75,000 What is the predetermined overhead rate for each activity? EA11 LO 6.3 Potterii sells its products to large box stores and recently added a retail line of products to sell directly to consumers. These estimates are to be used in determining the overhead allocation rate for ABC Cost Pool Ordering Machine setups Inspection Cost Driver Number of orders Number of setups Number of inspections Estimated Overhead $120,000 85,000 75,000 Wholesale 180,000 200,000 60,000 Retail 60,000 140,000 15,000 What would be the predetermined rate for each cost pool? EA12 LO 6.3 Assign each of the following expenses to either the machine setup cost pool or the factory cost pool: A indirect materials B. factory insurance C machine depreciation D. machine setup (indirect labor) E machine setup (indirect material)
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