Question
The accountant for Halifax Photographic Supply Ltd has estimated the following activity cost pools and activity drivers for the coming year: Activity Budgeted overhead cost
The accountant for Halifax Photographic Supply Ltd has estimated the following activity cost pools and activity drivers for the coming year:
Activity | Budgeted overhead cost | Activity driver | Budgeted level for activity driver |
Machine setups | $200,000 | No. of setups | 100 setups |
Material handling | $100,000 | Weight of raw material | 50,000 kilograms |
Hazardous waste control | $50,000 | Weight of hazardous chemicals used | 10,000 kilograms |
Quality control | $75,000 | No. of inspections | 1,000 inspections |
Other overhead costs | $200,000 | Machine hours | 20,000 machine hours |
TOTAL | $625,000 |
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Halifax Photographic Supply Ltd has received an order for 1000 boxes of film development chemicals. In addition to direct material costing $120 per box and direct labour costing $40 per box, the order has the following production requirements:
Machine setups 4 setups
Raw material 10,000 kilograms
Hazardous materials 2,000 kilograms
Inspections 10 inspections
Machine hours 500 machine hours
Required:
(Enter amounts only and do not use dollar signs or commas and if required use two decimal places)
(a) If Halifax Photographic Supply Ltd were to use a plantwide predetermined overhead rate based on machine-hours, compute the overhead rate per machine hour. Answer
(1 mark)
(b) If Halifax Photographic Supply Ltd were to use a plantwide predetermined overhead rate based on machine-hours, compute the total manufacturing cost of the order. Answer
(2 marks)
(c) Compute the total manufacturing overhead costs allocated to the order. Answer
(3 marks)
(d) Compute the total manufacturing cost of the order using activity-based costing. Answer
(1 mark)
Hi, can you please help me with this?
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