Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

H&Y Company uses four activity pools to apply overhead to its products. Each activity has a cost driver used to allocate the overhead costs to

H&Y Company uses four activity pools to apply overhead to its products. Each activity has a cost driver used to allocate the overhead costs to the product. The activities and related overhead costs are as follows: Activity Total Costs Volume of Cost Driver Material handling $ 334,140 111,380 parts Purchase orders 199,500 38 orders Set-up hours 350,400 160 hours Machining 462,550 3,190 machine hours Total costs $1,346,590 The above activities are used by the two different products as follows: PC-21 WX-34 Material handling 76,100 parts 35,280 parts Purchase orders 16 22 Set-up hours 117 hours 43 hours Number of machine-hours 2,000 machine hours 1,190 machine hours Calculate how much of the material handling cost will be allocated to PC-21. Material handling cost allocated to PC-21 $ Determine the ABC allocation rate for purchase orders. Activity-based allocation rate $ per order Calculate how much of the set-up costs will be allocated to WX-34. Set-up costs allocated to WX-34 $ Calculate how much of the total activity costs will be allocated to PC-21. Total activity costs allocated to PC-21 $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Strategic Pricing And Management Accounting

Authors: David Dugdale

1st Edition

78-1032224824, 1032224827

More Books

Students also viewed these Accounting questions