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HIFFUFIS Ove H ABC Costing 13 marks (There are 3 required parts to this question... please make sure you answer all 3 parts) Ingersol Draperies
HIFFUFIS Ove H ABC Costing 13 marks (There are 3 required parts to this question... please make sure you answer all 3 parts) Ingersol Draperies makes custom draperies for homes and businesses. The compay uses an activity based costing (ABC) systern for its overhead costs. The company has provided the following data concerning its annual overhead costs and its activity cost pools: Overhead costs Production Overhead Office expense Total S 120.000 120,000 240,000 $ Distribution of Resource Consumption: Activity Cost Pools Making Drapes Job Support Other Total Production overhead 35% 45% 20% 100% Office expenses 5% 65% 30% 100% The "Other" activity cost pools consists of the costs of idle capacity and organization-sustaining costs. The amount of activity for the year is as follow Activity Cost Pool Making Drapes Job Support Other Annual Activity 2,000 metres 160 jobs not applicable Required: 1. Prepare the first stage allocation of overhead costs to the activity cost pools by filling in the table below. Making Drapes Job Support Other Total Production overhead Office expenses Total 2. Compute the activity rates (.e. cost per unit of activity) for the Making Drapes and Job Support activity cost pools by filling in the table below
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