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Exercise 2 Loco Company sells 2 products (standard & deluxe) and it identifies the following overhead costs, activities, and drivers for 2011 Expected Cost $8,000
Exercise 2 Loco Company sells 2 products (standard & deluxe) and it identifies the following overhead costs, activities, and drivers for 2011 Expected Cost $8,000 $2,000 $16,000 $20,000 $4,000 $2,000 $6,000 $58,000 Expected Actitvity 1,750 3,500 700 1,750 17,500 17,500 1,750 Driver Parts Square feet Batches Purchase orders Square feet Square feet Machine hours Activity Handling materials Storing materials Inspecting product Purchasing Insuring the factory Cleaning workspace Factory utilities Total overhead cost Estimated production data for the two products is as follows Volume (in units) Parts Storage space used Batches made Purchase orders Workspace used Machine hours Standard 15,000 1,050 2,450 350 1,225 14,000 700 Deluxe 5,000 700 1,050 350 525 3,500 1,050 Calculate the following ABC overhead rates (round to the penny). a) ABC Rate - Handling b)ABC Rate - Storing c) ABC Rate - Inspecting d)ABC Rate Purchasing e)ABC Rate - Insurance fABC Rate- Cleaning g)ABC Rate - Utilities per part per sq. ft per batch per PO per sq. ft per sq. ft per mach. hr
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