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Pip's Puppies manufacturers 3 Products:Pip's Biscuits, Pip's Goodies and Pip's Treats.Pip Estimates that their Manufacturing Overhead Costs for April 2021 will be as follows: Cost
- Pip's Puppies manufacturers 3 Products:Pip's Biscuits, Pip's Goodies and Pip's Treats.Pip Estimates that their Manufacturing Overhead Costs for April 2021 will be as follows:
Cost Pools Est Costs Cost Drivers Total
Factory Property Taxes $50,000 Sq Feet 100,000 Sq Ft
Factory Supervision $200,000 Hours 20,000 Hours
Factory Depreciation $75,000 Units Produced 40,000 units
Total $325,000
Product Pip's Biscuits Pip's Goodies Pip's Treats Total
Sq Feet 30,000 45,000 25,000 100,000 Ft
Supervision Hours5 5,000 8,000 7,000 20,000 Hrs
# Units 14,000 15,000 11,000 40,000 Uts
- Calculate the manufacturing Overhead to be applied to each department if they allocate the costs evenly at a rate of 1/3 to each product.
- Calculate the amount of Manufacturing Overhead to be allocated using the Cost Pools and Cost drivers listed above
- Would the Costs be Over or under-applied if the company uses the 1/3 rate for each product? (Always Round to the nearest whole number)
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