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Pro-Craft Company computed the following activity rates to allocate overhead cost for the year. Activity Activity Rate Materials handling $ 64 per materials requisition Quality
Pro-Craft Company computed the following activity rates to allocate overhead cost for the year. Activity Activity Rate Materials handling $ 64 per materials requisition Quality inspection $ 54 per inspection Utilities $ 5 per machine hour During January, the company produced the following two jobs. Allocate overhead cost to each job using the activity rates. Activity Usage Activity Cost Driver Job A Job B Materials requisitions 3 Inspections Machine hours 370 5 8 4 270 Activity Rate Allocated Cost Allocate overhead based on actual activity usageJob A Activity Activity Usage Materials handling Quality inspection Utilities Total $ 0 Activity Rate Allocated Cost Allocate overhead based on actual activity usageJob B Activity Activity Usage Materials handling Quality inspection Utilities Total $ 0
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