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Pro-Craft Company computed the following activity rates to allocate overhead cost for the year. Activity Materials handling Quality inspection Utilities Activity Rate $ 68 per
Pro-Craft Company computed the following activity rates to allocate overhead cost for the year. Activity Materials handling Quality inspection Utilities Activity Rate $ 68 per materials requisition $ 58 per inspection $ 5 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 Materials requisitions Inspections Machine hours Activity Usage Job A Job B 6 4 9 5 390 290 Activity Rate Allocated Cost Allocate overhead based on actual activity usageJob A Activity Activity Usage Materials handling Quality inspection Utilities Total Activity Rate Allocated Cost Allocate overhead based on actual activity usageJob B Activity Activity Usage Materials handling Quality inspection Utilities Total
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