Question
The controller for BEC Events Inc. uses activity-based-costing and has established the following overhead cost pools and cost drivers. OVERHEAD COST POOL BUDGETED OVERHEAD COST
The controller for BEC Events Inc. uses activity-based-costing and has established the following overhead cost pools and cost drivers.
OVERHEAD COST POOLBUDGETED OVERHEAD COST
TRAVEL240,000
TENT SET-UP300,000
EQUIPMENT SET UP900,000
INSPECTIONS50,000
OTHER COSTS30,000
TOTAL OVERHEAD1,520,000
COST DRIVERBUDGETED LEVEL FOR COST DRIVER
# OF TRIPS120,000
# OF ORDERS600
# OR TYPES OF EQUIPMENT1,000
# OF INSPECTIONS100
LABOR HOUR3,000
BEC Events received an order requires 5 trips, 10 tent set-ups, 15 equipment set-ups, 10 inspections, and 40 labor hours.
1.What is the cost driver rate forEquipment set-ups?
2.What is the cost driver rate forInspections?
3.What is the total overhead assigned to this order?
4.If the controller were to use a single, predetermined overhead rate based onlabor hours, what is the rate ($)?
5.If the controller were to use a single, predetermined overhead rate based onlabor hours, what would be thetotal overheadassigned to this order?
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