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PA7. LO 6.3 Please use the information from this problem for these calculations. After grouping cost pools and estimating overhead and activities, Box Springs determined
PA7. LO 6.3 Please use the information from this problem for these calculations. After grouping cost pools and estimating overhead and activities, Box Springs determined these rates Purchasing (per order) Utilities (per square foot) Machine setups (per machine hour) Supervision (per direct labor hour) $55 8 5 It estimates there will be five orders in the next year, and those jobs will involve: Orders Square feet Machine hours Direct labor hours Direct materials Direct labor rate 5 200 50 35 1,500 $ 25 What is the total cost of the jobs? PA8 LO 6.4 A company has traditionally allocated its overhead based on machine hours but had collected this information to change to activity-based costing Estimated Activity Activity Center Product 1 Product 2 Estimated Cost Machine setups Assembly parts Packaging pieces Machine hour per unit Production volume 15 3,000 500 45 $10,800 3,000 400 144,600 55,350 4 750 1,500 A How much overhead would be allocated to each unit under the traditional allocation method? B. How much overhead would be allocated to each unit under activity-based costing
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