Answered step by step
Verified Expert Solution
Link Copied!

Question

...
1 Approved Answer

Help Save & Exit Submit Check my werk 5 Durban Metal Products, Ltd., of the Republic of South Africa makes specialty metal parts used in

image text in transcribed
Help Save & Exit Submit Check my werk 5 Durban Metal Products, Ltd., of the Republic of South Africa makes specialty metal parts used in applications ranging from the cutting edges of bulldozer blades to replacement parts for Land Rovers. The company uses an activity-based costing system for internal decision-making purposes. The company has four activity cost pools as listed below: Skipped Activity Cost Pool Order size Customer orders Product testing Selling Activity Measure Number of direct labor-hours Number of customer orders Number of testing hours Number of sales calls Activity Rate $ 16.85 per direct labor-hour $320.00 per customer order $89.00 per testing hour $1.090.00 per sales call Book AS Pent The managing director of the company would like information concerning the cost of a recently completed order for heavy duty trailer oxles. The order required 200 direct labor-hours. 4 hours of product testing, and 2 sales calls. Required: What is the total overhead cost assigned to the order for heavy duty traller axles? eferences ABC Cost Activity Cost Pool Order size Customer orders Product testing Selling Total overhead cost $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

College Accounting A Contemporary Approach

Authors: David Haddock, John Price, Michael Farina

3rd edition

978-0077639730

Students also viewed these Accounting questions