Question
Grouper Industries has three activity cost pools and two products. It estimates production 2,000 units of Product BC113 and 1,000 of Product AD908. Having identified
Grouper Industries has three activity cost pools and two products. It estimates production 2,000 units of Product BC113 and 1,000 of Product AD908. Having identified its activity cost pools and the cost drivers for each pool, Grouper accumulated the following data relative to those activity cost pools and cost drivers.
Annual Overhead Data | Use of Cost Drivers per Product | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Activity Cost Pools | Cost Drivers | Estimated Overhead | Estimated Use of Cost Drivers per Activity | Product BC113 | Product AD908 | |||||||||
Machine setup | Setups | $ 19,000 | 38 | 24 | 14 | |||||||||
Machining | Machine hours | 84,150 | 4,950 | 1,080 | 3,870 | |||||||||
Packing | Orders | 31,800 | 530 | 200 | 330 |
Using the above data, do the following:
(a)
Prepare a schedule showing the computations of the activity-based overhead rates per cost driver.
Activity Cost Pools | Estimated Overhead | Estimated Use of Cost Drivers per Activity | Activity-Based Overhead Rates | |||||
---|---|---|---|---|---|---|---|---|
Machine setup | $ enter a dollar amount | enter a number of setups | setups | $ enter a dollar amount per setup | per setup | |||
Machining | enter a dollar amount | enter a number of machine hours | machine hours | $ enter a dollar amount per machine hour | per machine hr. | |||
Packing | enter a dollar amount | enter a number of orders | orders | $ enter a dollar amount per order | per order | |||
$ enter a total amount |
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