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Perfectly Princess decides to try out activity-based costing. The indirect costs identified include: Activity Cost Cost Driver and Qty Activity Rate Supervision $100,000 1,000 direct
Perfectly Princess decides to try out activity-based costing. The indirect costs identified include:
Activity | Cost | Cost Driver and Qty | Activity Rate |
Supervision | $100,000 | 1,000 direct labor hours | |
Quality Control | $5,000 | 500 inspections | |
Equipment Costs | $300,000 | 750 machine hours |
a) Calculate the activity rate for each activity (show work here on your paper)
b) Apply overhead to job 15 assuming the job used 250 direct labor hours. 75 inspections and 380 machine hours. (Show calculations here on your own paper)
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