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The Jester Manufacturing Company produces two products: One is a recreational whitewater kayak molded and the other product is a high performance competition kayak model.
The Jester Manufacturing Company produces two products: One is a recreational whitewater kayak molded and the other product is a high performance competition kayak model. Jester retained a consultant to create an activity based costing system and provided the following data:
Cost Pool | Estimated Amount | Driver | Rec. Kayaks | competition kayaks | |
Building | $35000 | Square Footage | 8000 | 2000 | |
quality control | $20000 | number of inspection | 300 | 200 | |
materials ordering | $25000 | number of order | 200 | 100 | |
How much overhead was assigned to the Recreational Kayaks using ABC. Please round to 2 decimals when calculating the PDORs.
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