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Quality boats would like to apply Activity Based Costing to the allocation of their overhead using the following information: Activity Cost Driver Estimated Best Custom
Quality boats would like to apply Activity Based Costing to the allocation of their overhead using the following information: Activity Cost Driver Estimated Best Custom Solid Total Overhead Performer Cost Pool Purchasing Purchase $850,000 900 100 1000 Orders Machine Number of 1,550,000 400 240 640 Setups setups Maintenance Machine 2,600,000 38,000 16,000 54,000 hours Quality Number of 1,100,000 15,000 5,000 20,000 Assurance inspections Total $6,100,000 The direct cost of the Best Custom boat totals $2,775,000 to make 1,500 boats while the Solid Performer direct costs are $1,750,000 to make 500 boats. Use the information above to answer the questions below:What is the cost per boat of quality assurance allocated to the Solid Performer during the year?What is total cost of machine setups that would be allocated to the Best Custom boats for the year using activity based costing?What is the total cost per boat for the Solid Performer for the year including the overhead allocated using activity based costing rounded to the nearest dollar?What is the total cost of overhead allocated to the Best Custom boats for the year
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