Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please help Part II. Plantwide and Activity Based Costing BRS Industries manufactures custom lightweight motorbikes. The current cost accounting system uses machine hours to allocate
Please help
Part II. Plantwide and Activity Based Costing BRS Industries manufactures custom lightweight motorbikes. The current cost accounting system uses machine hours to allocate manufacturing overhead to each job. BRS estimates that in the coming year it will incur $750,000 in manufacturing overhead costs and use 10,000 machine hours. Depending on the specifications requested by the customer, the bike may use hazardous chemicals that incur greater disposal costs. BRS's traditional accounting system includes the cost of hazardous waste disposal in with total manufacturing overhead. BRS is planning to implement an activity based costing system to more accurately assign hazardous waste disposal costs to each job Expected usage and costs for manufacturing overhead are as follows: Cost Pool Description Cost Machine maintenance costs Engincering costs Hazardous waste disposal Cost Driver Usage 10,000 750 700 Pool Cost Driver $250,000 $150,000 350,000 $750,000 Number of machine hours Number of change orders Gallons of hazardous waste Costs e costs The following information relates to Motorbike #633, which was started and completed during they 40 2 15 $55 Machine hours used: Direct Material cost per pound: Pounds of Direct Materials used on job: Direct Labor cost per hour: Direct Labor Hours used: Change orders: Gallons of hazardous waste: 170 $20 45 BRS prices its bikes at 140% of total manufacturing costs. Requirements: 1. What is the plantwide overhead rate? Calculate the total cost of Motorbike #633 using BRS's current method of allocating m overhead based on a plantwide rate 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