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Hi! Could anyone help me with two accounting problems? Q13-1: Williams, a professional services firm has overhead of 625,000. It operates three divisions and an
Hi! Could anyone help me with two accounting problems?
Q13-1: Williams, a professional services firm has overhead of 625,000. It operates three divisions and an accountant's estimate of the overhead allocation per division is 38% for Division 1, 22% for Division 2 and 40% for Division 3. The divisions respectively bill 4,100, 1,950 and 3,300 hours. Calculate the business-wide overhead recovery rate and the cost centre overhead recovery rate for each division. Q13-2: Randy's Components uses an activity based costing system for its product costing. For the last quarter, the following data relates to costs, output volume and cost drivers. If set-up costs are driven by the number of production runs, what are the correct set-up costs for each product? Overhead Cost Machinery 172,000 Set-ups 75,000 Materials Handling 25,000 Total 272,000 Product information A B C Production and sales units 5,000 3,500 2,800 Number of production runs 11 9 6 Number of stores orders 15 10 9Step by Step Solution
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