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help me please with figuring out the red boxes. somehwere in my cal went wrong Charles Wilson has been studying his department's profitability reports for
help me please with figuring out the red boxes. somehwere in my cal went wrong
Charles Wilson has been studying his department's profitability reports for the past six months. He has just completed a managerial accounting course and is beginning to question the company's approach to allocating overhead to products based on machine hours. The current department overhead budget of $968.040 is based on 48,402 machine hours. In an initial analysis of overhead costs, Charles has identified the following activity cost pools. Expected Cost $ 637.500 Cost Pool Product assembly Machine setup and calibration Product inspection Raw materials storage 239,400 Expected Activities 37.500 machine hours 4,200 setups 1,320 batches 235,000 pounds 48,840 42,300 $ 968,040 Charles Wilson is taking the next step in his exploration of activity based costing and wants to examine the overhead costs that would be allocated to two of the department's four products. He has gathered the following budget information about each product Driver Usage Machine hours Setups Component 355 Component 176 940 11,300 41 17 Batches 20 10 Pounds of raw materials 10,000 10,000 (a) Calculate the total overhead allocated to each component under the traditional method using machine hours as the overhead application base. Component 3F5 Component 176 23326 277921 Total Overhead allocated (b) Calculate the total overhead allocated to each component under activity based costing. (Round overhead rates to 2 decimal places, 4.3. 5.27 and round final answers to decimal places, eg. 5,275.) Component 355 Component 176 20857 A 193539 Total Overhead allocated e Textbook and Media Step by Step Solution
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