Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Find total overhead cost Saved Ace Mining Tools Lid. of Calgary makes specialty tools used in the mining industry. The company uses an ABC system
Find total overhead cost
Saved Ace Mining Tools Lid. of Calgary makes specialty tools used in the mining industry. The company uses an ABC system for internal decision making. The company has four activity cost pools, as listed below: Activity Cost Pool Activity Measure Activity Rate Order size Number of direct labour-hours $ 17.60 per direct labour-hour Customer orders Number of customer orders $360.00 per customer order Product testing Number of testing hours $ 79.00 per testing hour Selling Number of sales calls $750.00 per sales call The managing director of the company would like information concerning the cost of a recently completed order for hard-rock drills. The order required 100 direct labour-hours, 20 hours of product testing, and five sales calls. Required: 1. Prepare a report showing the overhead cost of the order for hard-rock drills according to the ABC system. What is the total overhead cost assigned to the order? Activity Cost Pool ABC Cost Order size 4 Customer orders Product testing Selling TotalStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started