Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Orleans Company has identified the following overhead activities costs and activity drivers for the coming year: Activity Expected cost Activity Driver Activity Capacity Setting up
Orleans Company has identified the following overhead activities costs and activity drivers for the coming year: Activity Expected cost Activity Driver Activity Capacity Setting up $ Number of setups Inspecting $ Inspection hours Grinding $ Machine hours Receiving Number of parts The company produces several different subassemblies used by other manufacturers. Information on separate batches for two of these subassemblies are as follows: Batch A Batch B Direct Materials $ $ Direct Labour $ $ Units Completed Number of setups Inspection hours Machine hours Parts used The company's normal activity is direct labour hours. Each batch uses hours of direct labour. Upon investigation, you discover that Receiving employs a worker, who spends of her time on the receiving activity and of her time on inspecting products. Her salary is $ Receiving also uses a forklift, at a cost of $ per year for depreciation and fuel. The forklift is used only in receiving. What is the total cost assigned to the receiving activity? In other words what would be the amount for the table above What is The activity rate for receiving?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started