Question
No need to show working. The controller for BEC Events Inc. uses activity-based-costing and has established the following overhead cost pools and cost drivers. Overhead
No need to show working.
The controller for BEC Events Inc. uses activity-based-costing and has established the following overhead cost pools and cost drivers.
| Overhead Cost Pool | Budgeted Overhead Cost | Cost Driver | Budgeted Level for Cost Driver | |
| Travel | $ 360,000 | Number of trips | 480 | trips |
| Tent set-up | $ 450,000 | Number of orders | 1,000 | orders |
| Equipment set-up | $ 1,350,000 | # or types of equipment | 4,000 | set-ups |
| Inspections | $ 18,000 | # of inspections | 1,200 | inspections |
| Other costs | $ 240,000 | Labor Hours | 8,000 | hours |
| Total overhead | $ 2,418,000 | |||
BEC Events received an order requires 4 trips, 6 tent set-ups, 20 equipment set-ups, 2 inspections, and 48 labor hours.
- What is the cost driver rate for tent set-ups?
- What is the cost driver rate for inspections?
- What is the total overhead assigned to this order?
- If the controller were to use a single, predetermined overhead rate based on labor hours, what is the rate ($)?
- If the controller were to use a single, predetermined overhead rate based on labor hours, what would be the total overhead assigned to this order?
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