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Question 4. Hatch Hardwood Floors - Paramaribo (Suriname) (max. score 20) Hatch Hardwood Floors installs hardwood floors in homes and businesses. The company uses an
Question 4. Hatch Hardwood Floors - Paramaribo (Suriname) (max. score 20) Hatch Hardwood Floors installs hardwood floors in homes and businesses. The company uses an activity-based costing system for its overhead costs. The company has provided the following data concerning its annual overhead costs and its activity based costing system: Overhead costs: Production overhead .... SRD 160.000 Office expense ....mmm SRD 160.000 Total....umm SRD 320,000 Distribution of resource consumption: Activity Cost Pools Installing Job Floors Support Other Total Production overhead ....... 45% 35% 20% 100% Office expense ............. 10% 60% 30% 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: Activity Cost Pool Annual Activity Installing floors ....... 800 squares Job support .... 160 jobs Other ...mmmmmm Not applicable A "square" is a measure of area that is roughly equivalent to 1.000 square feet.4.1. (max. score 5) Prepare the first-stage allocation of overhead costs to the activity cost pools by filling in the table below. Installing Job Floors Support Other Total Production overhead .... Office expense .mountain Total. 1 0 9 9 titty 4.2. (max. score 5) Compute the activity rates (i.e., cost per unit of activity) for the Installing Floors and Job Support activity cost pools by filling in the table below;Installing Job Floors Support Other Total Production overhead Office expense manbroomall Total. 4.3. (max. score 5) Compute the overhead cost, according to the activity-based costing system, of a job that involves installing 2,4 squares.
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