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Exercise 17-14 (Algo) Allocating overhead cost to jobs using activity-based costing LO P3 Pro-Craft Company computed the following activity rates to allocate overhead cost for
Exercise 17-14 (Algo) Allocating overhead cost to jobs using activity-based costing LO P3 Pro-Craft Company computed the following activity rates to allocate overhead cost for the year. Activity Materials handling Quality inspection Utilities Activity Rate $ 66 per materials requisition $ 56 per inspection $5 per machine hour During January, the company produced the following two jobs. Allocate overhead cost to each job using the activity rates. Activity Cost Driver Materials requisitions Inspections Machine hours Activity Usage Job A Job 8 4 2 7 3 380 280 Allocate overhead based on actual activity usage-Job A Activity Materials handling Quality inspection Utilities Total Activity Usage Allocate overhead based on actual activity usage-Job B Activity Materials handling Quality inspection Activity Usage Activity Rate Allocated Cost $ Activity Rate: Allocated Cost Allocate overhead based on actual activity usage-Job A Activity Materials handling Quality inspection Utilities Total Activity Usage Allocate overhead based on actual activity usage-Job B Activity Materials handling Quality inspection Utilities Total Activity Usage Activity Rate Allocated Cost $ Activity Rate Allocated Cost + $ 0
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