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Refer to CASE 1 (Company A): Using the activity-based costing, how much overhead cost should be allocated to the Customer Support activity? a. $305,000 b.
Refer to CASE 1 (Company A): Using the activity-based costing, how much overhead cost should be allocated to the Customer Support activity? a. $305,000 b. $445,000 c. None of the amounts given d. $150,000 CLEAR MY CHOICE Customer Sup Case Study (1) + Company A * First Stage Allocation: Activity Pools Maintenance Mat-Han Setups Inspec Order P Indirect Factory w 625,00 62,500 25,000 50,000 25,000 Other MOH O 1501000 501000 200000 100.000 SAE 0 280,000 Total Cost 212,500 112,500 l 225,000 ) 150,000 305,000 / 445,000 25,000 0 0 420,000 * Compute fictnity Rates: Activity Cost pools Total Cost Maintenance 212,500 Material Handling 112,500 Setups Qa51000 Inspection 1501000 Order Processing 305,000 Customor Supports 445,000 Total Activity 10,000 30,000 151000 25,000 Activity Rate 21.25 Mclhr 3.75 Mt/Mv 15 per setup 6 quality inspec 12.2 per order 890 per customer 25,000 500
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