Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Nile Corp. has identified three cost pools to allocate overhead costs. The following estimates are provided for the coming year: Cost Pool Overhead Costs Cost

Nile Corp. has identified three cost pools to allocate overhead costs. The following estimates are provided for the coming year:

Cost Pool

Overhead Costs

Cost Driver

Activity Level

Supervision

$325,000

Direct Labor Hours

280,000

Maintenance

$135,000

Machine Hours

70,000

Facility Rent

$250,000

Square Feet

35,000

Total Overhead Costs

$710,000

The accounting records show the Mossman Job consumed the following resources:

Cost driver Actual level

Direct labor-hours 1,700

Machine-hours 240

Square feet of area 50

If Nile Corp. uses the three activity cost pools to allocate overhead costs, what are the activity-cost driver rates for supervision of direct labor, machine maintenance, and facility rent, respectively?

a. What is the activity rate for Supervision cost pool?

b. What is the activity rate for Maintenance cost pool?

c. What is the activity rate for Facility Rent cost pool?

d. How will MOH be allocated to Job M?

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_2

Step: 3

blur-text-image_3

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

The ASQ Certified Quality Auditor Handbook

Authors: Lance B Coleman

5th Edition

1951058097, 978-1951058098

More Books

Students also viewed these Accounting questions