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The following is taken from Ronda Co's internal records of its factory with two production departments. The cost driver for indirect labor and supplies is
The following is taken from Ronda Co's internal records of its factory with two production departments. The cost driver for indirect labor and supplies is direct labor costs, and the cost deliver for the remaining overhead items is number of hours of machine use. Direct Laber Machine HOOF Department: $15,600 1,600 Department 16,100 1.520 Totals $32,000 3,200 Factory overhead costs Hent and utilities $ 9.000 Indirect labor 4,600 General office expense 5,00 Depreciation Equipment 4.600 Supplies 400 Total factory overhead $2,200 Compute the total amount of overhead cost allocated to Department using activity based costing (Round activity rate answers to 2 decimal places.) Couts to be allocated Estimated Cout Estimated Cost driver Activity Rate Cost driver quantity incurred OH Allocated Indirect labor and supplies Rentescontat office and depreciation 0
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