Question
Pro-Craft Company computed the following activity rates to allocate overhead cost for the year. Activity Activity Rate Materials handling $ 67 per materials requisition Quality
Pro-Craft Company computed the following activity rates to allocate overhead cost for the year.
| Activity | Activity Rate | |
|---|---|---|
| Materials handling | $ 67 | per materials requisition |
| Quality inspection | $ 57 | per inspection |
| Utilities | $ 6 | per machine hour |
During January, the company produced the following two jobs. Allocate overhead cost to each job using the activity rates.
| Activity Cost Driver | Activity Usage | |
|---|---|---|
| Job A | Job B | |
| Materials requisitions | 5 | 3 |
| Inspections | 8 | 4 |
| Machine hours | 385 | 285 |
allocate overhead based on actual activity usage- Job A
Activity. Activity usage. Activity rate Allocated cost
Materials handling
quality inspection
utilities
total
allocate overhead based on actual activity usage- Job B
Activity. Activity usage. Activity rate Allocated cost
Materials handling
quality inspection
utilities
total
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Principles Of Food Beverage And Labor Cost Controls
Authors: Paul R. Dittmer, J. Desmond Keefe
8th Edition
0471429929, 978-0471429920
