Question
Fast Company has established the following overhead cost pools and cost drivers for the month of May: Cost Pool Overhead Costs Cost Driver Levels Purchase
Fast Company has established the following overhead cost pools and cost drivers for the month of May:
| Cost Pool | Overhead Costs | Cost Driver Levels | |
|---|---|---|---|
| Purchase orders | $ 19,080 | 30 | orders |
| Machine setups | 42,000 | 100 | setups |
| Electricity | 20,000 | 20,000 | kilowatt hours |
The following information pertains to the actual consumption of activity resources for two sample jobs completed during May.
| Job M1 | Job M2 | |
|---|---|---|
| Number of units produced | 480 | 960 |
| Number of purchase orders | 20 | 15 |
| Number of setups | 25 | 15 |
| Number of kilowatt hours | 480 | 960 |
What is the activity-based overhead rate per purchase order?
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Cost Accounting Foundations and Evolutions
Authors: Michael R. Kinney, Cecily A. Raiborn
8th Edition
9781439044612, 1439044619, 978-1111626822
