Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Question C is the most important to be answered Poldberg Co. uses activity-based costing for all of its overhead costs. The company has provided the
Question C is the most important to be answered
Poldberg Co. uses activity-based costing for all of its overhead costs. The company has provided the following data concerning its annual overhead costs and its activity based costing system: Overhead costs: Wages & Salaries Factory Supplies Total $806,000 488,000 $1,294,000 Distribution of resource consumption: Clean-Up Other Total Activity Cost Pools Wages and salaries Factory Supplies Inspection 60% 22% 18% 100% 48% 20% 32% 100% The amount of activity for the year is as follows: Activity Cost Pool Clean-Up Inspection Activity 1,000 Batches 400 Inspections a. How much OVERHEAD cost would be allocated to a "Customer A, who initiated 125 batches and 55 inspections in a year? b. Using the following information, set up a Customer Margin Report using Activity Based Costing to determine the profitability of the customer. Customer A Sales $580,000 Direct Material Cost $230,000 Direct Labor Cost $150,000 Selling Cost $80,000 c. Looking back to your work above, specify the value for each of the following: 1) Total overhead assigned to the Inspection cost pool: 2) Allocation rate for the clean-up cost pool: 3) Total clean-up overhead assigned to the customer: 4) Total inspection overhead assigned to the customer: 5) Total direct costs traced to the customerStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started