Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Requirement 1. Determine the formula, then compute the cost allocation rate for each activity. (Round your answers to the nearest whole dollar. Abbreviations used: Mat.=Materials,
Requirement 1. Determine the formula, then compute the cost allocation rate for each activity. (Round your answers to the nearest whole dollar. Abbreviations used: Mat.=Materials, QA=Quality assurance) Activity cost Data Table + allocation rate Estimated indirect activity cost 180,000 Cost allocation base (estimated) 18,000 $ $ 10 per kilo Mat, handling Packaging $ 410,000 2,500 = $ 164 per hour Estimated Quantity of Allocation Base QA $ 113,000 1,000 = $ 113 per sample Activity Materials handling Estimated Indirect Activity Costs Allocation Base $ 180,000 kilos 18,000 kilos Requirement 2. Use the activity-based cost allocation rates to compute the indirect cost of each unit of the commercial containers and the travel packs. ost per 410,000 Machine hours 2,500 hours Commercial Container Packaging Quality assurance $ Total indirect costs ........ 113,000 Samples 1,000 samples 703,000 Materials handling Packaging Quality assurance Total indirect costs The commercial-container Breathe product line had total weight of 8,127 kilos, used 1,500 machine hours, and required 210 samples. The travel-pack line had a total weight of 6,047 kilos, used 500 machine hours, and required 310 samples. Gibson produced 3,000 commercial containers of Breathe and 62,500 travel packs. + Number of units Indirect activity cost per unit Print Done
Step 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