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Need help answering these 2 questions that go together Bark Mode is considering switching to an Activity Based Costing (ABC) approach to budgeting. It has
Need help answering these 2 questions that go together
Bark Mode is considering switching to an Activity Based Costing (ABC) approach to budgeting. It has identified three cost pools. Budgeted cost and activity for each of its three activity cost pools are shown below. The company plans to produce and sell 120,000 standard units and 80,000 deluxe units. Budgeted Activity Activity Cost Pool Activity Driver Budgeted Cost Standard Deluxe Packaging Finished goods $100,000 120,000 finished units 80,000 finished units Material handling Total parts $ 50,000 600,000 total 650,000 total parts parts Production setups Total setups $120,000 6 total setups 14 total setups You have already calculated the overhead rates for the 3 activity cost pools. Now, Calculate how much of the budgeted overhead will be applied to the Standard system using ABC costing. Specify in dollars only (no decimal places or cents). (Note: for each activity cost pool, calculate how much overhead should be allocated to the Standard System. Then, total these amounts.) Bark Mode is considering switching to an Activity Based Costing (ABC) approach to budgeting. It has identified three cost pools. Budgeted cost and activity for each of its three activity cost pools are shown below. The company plans to produce and sell 120,000 standard units and 80,000 deluxe units. Budgeted Activity Activity Cost Pool Activity Driver Budgeted Cost Standard Deluxe Finished Packaging $100,000 120,000 80,000 finished units finished units goods Material handling Total parts $ 50,000 600,000 total 650,000 total parts parts Production setups Total setups $120,000 6 total setups 14 total setups You have already calculated the overhead rates for the 3 activity cost pools. Now, Calculate how much of the budgeted overhead will be applied to the Deluxe system using ABC costing. Specify in dollars only (no decimal places or cents). (Note: for each activity cost pool, calculate how much overhead should be allocated to the Deluxe System. Then, total these amounts.)Step by Step Solution
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