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Question 2: (10 points) B1, C1 Sameh manufacturing corporation has $300,000 of indirect materials and $500,000 of other indirect cost the company used ABC system
Question 2: (10 points) B1, C1 Sameh manufacturing corporation has $300,000 of indirect materials and $500,000 of other indirect cost the company used ABC system to distribute the overhead cost over the following activities: Item Activity Cutting / unit Assembling unit Covering unit Processing orders Servings customers Indirect materials 30% 20% 5% 15% 30% Other indirect 20% 3096 10% 10% 30% Total Activity 60,000 unit 40.000 units/ year 20,000 units/year 1.500 order/ year 2.000 customer/year Instruction: 1- Allocate the overhead cost to the activity and calculate the cost per activity (5 points) 2- Calculate total overhead cost if the company received 5 orders from 3 customers, each order 10 units. (5 points)
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