Answered step by step
Verified Expert Solution
Question
...
1 Approved Answer
Painter Font Paragraph 4. Qu'Appelle Industries Ltd. has been using a single manufacturing overhead cost pool to allocate its manufacturing overhead, with direct labour hours
Painter Font Paragraph 4. Qu'Appelle Industries Ltd. has been using a single manufacturing overhead cost pool to allocate its manufacturing overhead, with direct labour hours as the allocation base. For 2022, Qu'Appele estimated its total manufacturing overhead would be $650,000, and 20,000 direct labout hours would be worked. Qu'Appelle has decided to adopt activity-based costing, and has identified three major activities. The overhead costs for 2022 have been assigned to these activities as follows: Overhead Total expected Cost allocated volume of activity Transfers between processes $ 9,600 1200 transfers Machine setups required $246,000 3.000 machine setups Machining $382,500 22,500 machine hours Total allocated to activity pools To determine the impact of the change to activity-based costing, Job 430 has been selected, and the following information gathered from the job card: Direct materials used $6,900 Direct labour cost per hour $28 Direct labour hours used 10 Number of transfers Machine setups required 5 Machine hours used 60 Number of units produced 45 Required: a) Compute the predetermined overhead rate under the existing costing system at Qu'Appelle, and then compute the total cost and cost per unit of Job 430 b) Compute both the total cost and cost per unit for Job 430 using activity-based costing c) Note that the total manufacturing costs allocated to the three activity pools is less than the total manufacturing overhead costs incurred Explain why some manufacturing overhead costs have not been allocated and provide an example d) Explain why Qu'Appelle may choose to allocate non-manufacturing costs to Job 430 Provide an example of a cost that should be allocated as part of your explanation 4 4 8 2 2 words D English (Canada) x Accessibility: Investigate me here to search o
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/07/669172dd76526_156669172dcdfd25.jpg)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started