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Question 1 (11Marks) Silken Draperies makes custom draperies for homes and businesses. The company uses an activity based costing system for its overhead costs. The
Question 1 (11Marks) Silken Draperies makes custom draperies for homes and businesses. The company uses an activity based costing system for its overhead costs. The company has provided the following klata conceming its annual overhead costs and its activity cost pools: Overhead Costs: Production Overhead Office Expense Total $120,000 $120,000 $240.000 Distribution of Resource Consumption: Activity Cost Pools Making Job Drapes Support Other 35% 45% 20% 5% 65% 30% Production overhead Office expense Total 100% 100% The 'Other activity cost pool consists of the costs of idle capacity and organization sustaining costs. The amount of activity for the year is as follows: armat Painter ward s BIU. . .A. Merge & Center 5 % Number font Alignment C D E F G H I J K L The "Other activity cost pool consists of the costs of idle capacity and organization-sustaining costs. The amount of activity for the year is as follows: Activity Cost Pool Making Drapes Job Support Other Annual Activity 2.000 metres 160 jobs Not applicable Required a) Prepare the first stage allocation of overhead costs to the activity cost pools by filling in the table below (4 Marks) Making Drapss Job Support Other Production Overhead Office Expense Tel b) Compute the activity rates (ie, cost per unit of activity) for the Making Drapes and Job Support activity cost pools by filling in the table below (3 Marks): db Making Page 01 02 03 04 O Type here to search
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